3 ms·
OpenBazaar uses 2-of-3 multisig, meaning that the buyer doens't send funds directly to the seller but instead sends it to a Bitcoin account that is jointly cont
by SamPatt 12y ago
OpenBazaar uses 2-of-3 multisig, meaning that the buyer doens't send funds directly to the seller but instead sends it to a Bitcoin account that is jointly controlled by three parties; the buyer, the seller, and a trusted third party called a notary. Both parties agree to the notary, and then in order for the funds to be released from the multisig, any two parties must agree on how the funds are released.
In a normal transaction, once the item ships and is received, both the buyer and seller agree to the transaction and funds are released. If there is a problem, then that third party enters the picture, and sends funds from the multisig by agreeing with either buyer or seller.
- click170 12y agoThank you for clarifying. The buyer and seller both get a say in who the notary is, correct? What if they can't agree on a trusted notary? Is it possible to have more than one notary (eg 3 notaries requiring 4 people in agreement for a large transaction?)
- sanswork 12y agoHow will they be able to prove anything though? The seller could send an empty box. They'd have a tracking code then "proving" they'd sent the item. The buyer could claim it was an empty box but the 3rd party wouldn't be able to know if it was or not. A scammer would just have to ensure they cycle 3rd parties so their actions aren't noticed(or cycle accounts). What's to stop that?
- mappu 12y agoThat (fraud) is a problem for current ecommerce too. It can be addressed in part by reputation systems.