A proposal for wallet-less markets

What up, good people? In light of the recent events of markets shutting down, stealing wallets, people being dicks and all the other shenanigans going on out there, we, the team of KingsMarkets (watch out for us, launch coming in March) are here to propose a market without a conventional wallet system. We would like to hear the community's feedback on our proposal and discuss advantages and disadvantages.

Here is how it happens:

  1. a buyer (Bob) wants to buy a product

  2. a seller (Sam) offers the desired product

  3. Bob adds the product to his shopping cart and proceeds to check out

  4. when checking out, Bob not only has to leave his address encrypted via PGP, but also an unencrypted bitcoin address (the bitcoin address is mandatory). We will call this address return address

  5. the market then tells Bob a bitcoin address (called transaction address) and the complete amount of bitcoins (including fees) he has to transfer to the transaction address

  6. now 3 things might happen:

    • Bob transfers the exact amount to the transaction address: the market notifies Sam about the transaction, and that it has been funded
    • Bob transfers not enough money to the transaction address: the market will return all funds to the given return address and tells Bob, that he better gets all the money together in case he wants to start the transaction
    • Bob transfers too much money to the transaction address: the market starts the transaction by noticing Sam and returns the superfluous funds to Bob's return address
  7. in case the transaction was successfully funded, the money will be kept in the market's escrow until Bob releases the money

  8. now Sam has to accept the transaction. If he does so, he also has to give a bitcoin address. He might also cancel the transaction, in this case all the money will go back directly to Bob's return address

  9. When the funds are released by Bob, they are moved from the markets escrow system to the address Sam gave in step 8

In case the the buyer or the seller do not want to type in a fresh address for every transaction, they will be given the possibility to add a fixed address in their preferences. This address then will be used as the return address for every transaction the buyer starts/the seller accepts.

This process has a couple of advantages and disadvantages we would like to discuss:

advantages:

  1. the customer will never have to leave more BC than needed on the site

  2. in case the site is shut down via kill switch, all the money for non-shipped transactions can be transfered back to their owners immediately as every transaction has a known return address

disadvantages:

  1. the buyer might be able to spam the market with transactions, as they don't need money upfront. We will address this problem by setting a maximum number of transactions a buyer can start. This limit will increase with the buyer finalizing more and more transactions.

What do you guys think about all this?


Comments


[4 Points] meat_love:

Just like TMP does... nothing new


[1 Points] Gomba1:

Outlaw market also has that, and the 2 new ones (forgot their names) and TMP


[1 Points] None:

Is this multi-sig or something different? TMP Already uses such a system but if you can make it work for your market why not? It is a far more superior system than the traditional Escrow but if there is a possibility of the market taking off with the funds it would be useless.