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Nash eXchange tag

An incentive-compatible ‘deposit-refund’ mechanism for enabling trade without trusted third parties is the ‘exploding Nash equilibrium’ where both parties put up 100% of the value in an ‘exploding box’, and if either is unhappy, the value is destroyed. Neither party gains from scamming the other.

This can be implemented as ‘2-of-2’ multisig escrow in Bitcoin & was popularized by the NashX website, and proposed for darknet market use.

See Also