Multisignature platforms? | Bitcointalksearch.org

Anoxxxy

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Quote from: AB de Royse777 on May 25, 2020, 05:51:14 PM

I am not a guy who is technically very sound but what I understand is - you are saying a platform where the exchange and trader/gambler will had a 2 of 2 multisig wallet holding the funds for individuals? This will be too complicated for exchanges or casinos. What if a client deny signing the amount they lost, the fund is dead in that case.

I hope I get you right.

The user signs upon placing an order, so there won't be any issues at al.

Regards Anoxy

pooya87

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it won't work. centralized exchanges are custodial so they have to have full control over user's funds. that is how they perform fast and efficiently even if at a higher risk (since user gives up full control over his money). they will never share that control with their users. same with gambling sites.
not to mention that it will effectively spam attack bitcoin network! lets say user deposits 1 bitcoin in their exchange account in a 2of2 address. that's 1 on-chain transaction. now they want to sell 0.5 bitcoin, that is another on-chain transaction. now they want to buy back 0.2, another tx.... that's why they give up control and let the exchange own the whole 1 bitcoin with the first tx and then continue trading within their database.

however, what you had in mind works better with decentralized exchanges where there is no middle man and preferably those that aren't working on-chain. like a DEX that is using a second layer such as lightning network. users can make as many transactions as they want with as many signers with all kinds of additional conditions (HTLC smart contracts,...).

AB de Royse777

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I am not a guy who is technically very sound but what I understand is - you are saying a platform where the exchange and trader/gambler will had a 2 of 2 multisig wallet holding the funds for individuals? This will be too complicated for exchanges or casinos. What if a client deny signing the amount they lost, the fund is dead in that case.

I hope I get you right.

Anoxxxy

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Activity: 232

Merit: 100

Quote from: AB de Royse777 on May 25, 2020, 05:23:00 PM

Problem with X-of-X is that if something happens to one cosigner then the funds in the wallet is gone for good. X-of-Y is the better solutions. And what's wrong with keeping them in a wallet instead of the platform you are seeking?

I get what you mean, but it totally depends on of the multisig platform is implemented. By implementing `OP_CHECKLOCKTIMEVERIFY` we can setup certain conditions to happen, and by that said the funds till be "SAFU".

This means that the regular user in a crypto game platform or crypto exchange would be much more calm in case of hacks, avoding headache and minimizing hacks is really the way to go for all upcoming crypto related projects.

Also a daily trader in an exchange would rather prefer to keep on trading instead withdrawing the funds, and the regular user is naive and keeps their funds and trust in exchanges.

/Regards Anoxy

AB de Royse777

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Problem with X-of-X is that if something happens to one cosigner then the funds in the wallet is gone for good. X-of-Y is the better solutions. And what's wrong with keeping them in a wallet instead of the platform you are seeking?

Anoxxxy

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Hi everyone,
it was indeed long time ago I was active here due to private life.

Anyway, I am surprised that after so long time (since I was active here) there isn't any multisignature platforms out there (except for keeping funds in a wallet).

I would like to know what the main reason is about why multisignature wallets X-of-X isn't used in exchanges or games. I mean by using X-of-X multisig addresses it will greatly reduce the risks of hacking as well as inside jobs in a platform.
Note that I wrote X-of-X because it must be equal, some platforms out there uses X-of-Y multisig wallets but this doesn't give the client/user control of of any transactions made in case of hacks.

Perhaps there are multisig platforms (exchanges, games) out there which I am unaware of, if that is the case please let me know.

Regards Anoxy

EDIT: if this is wrong category, I apologize and hope that it can be moved to the correct category.

Topic: Multisignature platforms? (Read 129 times)