Is it possible to create a blockchain with an escrow mechanism?

satscraper

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Quote from: Adigvcdh on May 19, 2024, 02:03:57 PM

Hello!

I'm interested in the possibility of integrating an escrow mechanism into a blockchain. I know that escrow is often used to protect the interests of parties in various transactions, and I would like to know if similar functionality can be implemented using blockchain technology.

Yeah, it is possible and the relevant development is already in progress. For instance, BitEscrow project has proposed SDK which "implements a trust-less protocol for locking Bitcoin in escrow, without requiring a custodian for the funds".

You may try their engine to create the draft for such escrow contract and look at its details.

AB de Royse777

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Quote from: Adigvcdh on May 19, 2024, 02:03:57 PM

I'm interested in the possibility of integrating an escrow mechanism into a blockchain.

Earlier I saw Zenland. I have not looked at details of their technical aspects but I guess you can have a look if that is closer to your idea.

pooya87

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Quote from: Amphenomenon on May 19, 2024, 03:25:12 PM

Smart contract can be use for this, if certain conditions is meant then the transactions will go on.

What you call "condition" determines whether this is possible or not.

Certain "conditions" are impossible to implement using smart contracts because you can't programmatically check and enforce them.
For example when it is an escrow for purchase of a physical good. There is no way to verify if the merchant sent the physical goods in the code (aka digitally). There needs to be human intervention, and a third party.

Some other "conditions" in some special cases can be implemented.
For examples if it is a coin swap. Like if you wanted to exchange your litecoin for bitcoin. Atomic Swap protocol is categorized as HTLC that act as escrows.

Both of these examples are possible in Bitcoin protocol with its smart contract capabilities.

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If this is all about the escrow mechanism I think Bitcoin's blockchain already has a similar function Miners and nodes should act as escrow they are the ones who confirm and validate transactions if the transaction didn't follow the consensus rules then it would likely be rejected.

Unless you talking about different functions? You should explain more because Bitcoin already has this function.

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Quote from: Adigvcdh on May 19, 2024, 02:03:57 PM

I'm interested in the possibility of integrating an escrow mechanism into a blockchain. I know that escrow is often used to protect the interests of parties in various transactions, and I would like to know if similar functionality can be implemented using blockchain technology.

Basic escrow is as easy as sending to a 2-of-3 multisig address, with an arbitrator being the third signer.

A 2-of-2 multisig escrow must generally be done in a layer on top of Bitcoin, but that might change in the future. A Lightning channel is an example a 2-of-2 multisig escrow.

Amphenomenon

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Smart contract can be use for this, if certain conditions is meant then the transactions will go on.

Another I think is similar is the LN, since both party have to multi-sig address where an agreement must be reached between parties before the transaction can be a success

Adigvcdh

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Hello!

I'm interested in the possibility of integrating an escrow mechanism into a blockchain. I know that escrow is often used to protect the interests of parties in various transactions, and I would like to know if similar functionality can be implemented using blockchain technology.

Topic: Is it possible to create a blockchain with an escrow mechanism? (Read 132 times)