How is this done technically? Are the coins transferred to an intermediate address owned by the third party?
Exactly, if there are disputes, this third party decides who send the BTC based on provided proofs
Topic: Hi escrow explanation please (Read 538 times)
Exactly, if there are disputes, this third party decides who send the BTC based on provided proofs
Intermediate address is the standard procedure indeed.
Theres also multisignature escrow, where n of m keys are required to access the funds.
Here's a clientside implementation of 2 of 3 escrow: http://www.bitescrow.org/
You still need trust to some extent, but at least the 3rd party cant run away with the money without getting a key from buyer or seller.
Theres also multisignature escrow, where n of m keys are required to access the funds.
Here's a clientside implementation of 2 of 3 escrow: http://www.bitescrow.org/
You still need trust to some extent, but at least the 3rd party cant run away with the money without getting a key from buyer or seller.
How is this done technically? Are the coins transferred to an intermediate address owned by the third party?
You're trusting a 3rd party so that the transaction goes smooth and you don't get scammed.
Escrow is like a "trusted middle man".
Basicly you buy something form person X, who you don't know (and/or trust). You make your payment not directly to person X, but to the middle man. They then hold your payment until you confirm receipt of the item/goods/coins. Only then will person X receive his payment.
Basicly you buy something form person X, who you don't know (and/or trust). You make your payment not directly to person X, but to the middle man. They then hold your payment until you confirm receipt of the item/goods/coins. Only then will person X receive his payment.
You are buying bitcoin or selling?
If you are buying, escrow will hold sellers bitcoins till you provide money.
If you are selling, escrow will hold your bitcoins till buyers makes payment to you.
If you are buying, escrow will hold sellers bitcoins till you provide money.
If you are selling, escrow will hold your bitcoins till buyers makes payment to you.
Hi
Can someone please explain the mechanics of the escrow process in the context of bit coin trading.
Thanks
Can someone please explain the mechanics of the escrow process in the context of bit coin trading.
Thanks
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