P2P Exchange Hodl Hodl Enables 2 out of 3 Multisig Contracts
Hodl Hodl – a global P2P cryptocurrency exchange that doesn’t hold users funds – recently enabled 2 out of 3 multisig escrow contracts on its platform.
Hodl Hodl introduces 2 out of 3 multisig escrowhttps://t.co/UwSE5GJEg4 pic.twitter.com/REXQgH0QN1
— Hodl Hodl (@hodlhodl) 22 октября 2018 г.
The blog post states that everyone can now trade using 2 out of 3 multisig escrow. In contracts of this type, 2 keys are required for a release, and in total there are 3 keys to escrow: one belongs to the seller, one to the buyer, and one to Hodl Hodl.
During each trade, Hodl Hodl generates a unique multisig escrow cryptocurrency address, this is where the seller locks the funds, and then buyer sends the fiat according to the agreed upon payment method. Afer that the seller confirms he has received the payment and finally releases funds from escrow directly to the buyer’s wallet.
In a regular contract with 2 out of 3 multisig escrow, where everything goes well, the buyer’s key is not needed – it only comes into play if the contract is disputed, and the Hodl Hodl administrator resolves it in favor of buyer. In this case, buyer is able to sign a release transaction with his key, and receive the funds without seller’s participation.
In these trades, buyers will have some control over the funds locked in escrow, which as platform representatives explain, was created in response to requests from institutional brokers and large traders.
The project’s plan for the future includes implementing P2P futures on the exchange, and opening an OTC trading desk.
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