2of3 multisig failed, TMP is a testament to that, why, because it required buyers to do extra work for little benefit to them.
So whats the solution? 2of2 multisig, the vendor and the market each hold a key to the escrow:
Benefits
- Admins,LEA,Hackers cannot steal coins, removing the incentive to take market down.
- Vendors do not have to price in possible loss of escrow.
- Escrow still available to hold vendors accountable and stop scammers.
- Transparent to buyers.
Restrictions
- Escrow can still be lost if site goes down, however it wont be because someone stole it.
- Buyers may not receive refund in a dispute due to hardheaded vendor, it would be up to the admin to decide to hold vendor accountable by fines, suspension, revocation.
To date not one market has implemented 2of2 multisig.
2 of 3 multisig where a 3rd party escrow agent is handling the key for the buyer is a better solution than 2 of 2. Still has the same benefits but it will be possible to get the coins back even in case the market goes down.
And for the buyer, the ordering process is exactly the same as with regular escrow.
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