Author Topic: Let's ditch the 2-2. 2-3 represented instead.  (Read 450 times)

aMarketSolution

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Let's ditch the 2-2. 2-3 represented instead.
« on: August 23, 2017, 03:57:18 AM »
2-2 puts a lot of risk on the parties involved in the event one of the members goes missing. It's not reliable, and has serious issues. While it is better than traditional centralized escrow (by preventing stealing) it has the fundamental problem of no coin recovery in a missing person.

I believe represented 2-3 is the way someone developing this software should go. I'll explain briefly how it works, and may come back later to give more detail. I wrote this in another place for explanation, and it's quoted below.

Quote
2-3 multi-sig (time locked to the vendor) with vendor, customer rep (an established vendor), and the market as escrow. (so that the complexity of multi-sig isn't pushed onto the customer, but the market gains all the benefits of 2-3 multi-sig with customer, vendor, market)

Works like so:

1. Market asks which vendors want to be a representative for the customer.
2. Market randomly chooses 3 active (within the last 24 hours) vendors who have opted in, and displays them to the customer to choose one when they checkout.
3. Lists all available stats on these representatives, so that customers don't choose crappiest one out of the three.
4. Generate a multi-sig address with the vendors' and market's keys.
5. Customer sends to the address to complete their transaction.
6. Market immediately time locks the transaction to the selling vendor.
7. If a dispute happens, the representative signs for the customer to receive their money back. And the market signs the other (since they are the escrow.)
8. Otherwise, whenever the customer finalizes/auto finalizes, the market signs for the customer. And the vendor can sign their own transaction to get their bitcoins.

Collusion between parties isn't a real issue on a bitcoin market place. If the market colludes with a vendor, they'll be immediately exposed to the customer base as untrustworthy. So market collusion isn't a real problem. If a vendor colludes with another vendor, then banning both vendors would suffice. The loss would be low due to the spread of vendors/reps. And the collusion would be obvious.

Vespco

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Re: Let's ditch the 2-2. 2-3 represented instead.
« Reply #1 on: October 08, 2017, 07:49:28 AM »
Both will be available. It is open source and an on going project but 2/2 multisig for monero is further along and easier to implement.

In a 2/3 the marketplace would be the third signer.