Multi-sig is m-of-n. You need m signatures from among n keys, with m <= n. Choosing the right values for m and n with the right parties can handle all these situations.
If there is gridlock, the deflation will only increase the value of the funds gained from resolving a dispute.
Topic: practical implications of multi-sig feature (Read 3483 times)
I propose all unused bitcoins after 60 days can be re-mined! jk...
1. Possibly. More value for me.
2. Sure. That's why escrow services w/ mediation exist. But having the option is nice.
1. Possibly. More value for me.
2. Sure. That's why escrow services w/ mediation exist. But having the option is nice.
The consensus is that multi-sig feature is desirable, and will only open new ways to use Bitcoin. I agree, and look forward to it.
There are some general, non-technical implications of this feature, though, that might affect Bitcoin economy as a whole. What do you think of the following questions?
1. Will it lead to higher deflation? Inevitably, various disputes will lead to funds being frozen indefinitely. Also, the rate of loss due to technical glitches will go up (it only takes one of the parties to lose their private key for the whole address to be lost). Together, these factors will lead to a higher rate of monetary deflation than what it would have been without multi-sig. I personally don't consider this a problem, but obviously people still have strong opinions on the issue of deflation.
2. Can it be abused to hurt your oponents in much the same fashion as lawsuits nowadays are often abused to simply bankrupt (smaller) competitors? Surely you can't steal the money, but you could be sneaky and freeze it indefinitely making it unavailable to the oponent.
There are some general, non-technical implications of this feature, though, that might affect Bitcoin economy as a whole. What do you think of the following questions?
1. Will it lead to higher deflation? Inevitably, various disputes will lead to funds being frozen indefinitely. Also, the rate of loss due to technical glitches will go up (it only takes one of the parties to lose their private key for the whole address to be lost). Together, these factors will lead to a higher rate of monetary deflation than what it would have been without multi-sig. I personally don't consider this a problem, but obviously people still have strong opinions on the issue of deflation.
2. Can it be abused to hurt your oponents in much the same fashion as lawsuits nowadays are often abused to simply bankrupt (smaller) competitors? Surely you can't steal the money, but you could be sneaky and freeze it indefinitely making it unavailable to the oponent.
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