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I now read DannyHamilton mentioned the seller has to deposit the price of the item to the escrow address too? So seller sends amount x and buyer amount 2x?
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Yes. That's how Serge V. described the process. See here:
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1. The escrow agent creates a transaction, according to which the buyer collateral & the buyer payment for goods (2x) + the seller collateral (1x) will be sent to the created from their public keys MultiSig address.
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So the buyer sends payment plus "collateral" of bitcoins equal to payment, and seller sends "collateral" of bitcoins equal to the seller's price.
That way if the participants can't come to an agreement on a resolution for the payment/product dispute, they both lose the collateral (permanently stuck in the 2-of-2 transaction. The only way either of them can get any of their collateral back is to find a resolution that they can both agree to.
The concept is that the collateral is enough motivation to force the scammer to behave, but the problem is that the collateral might be enough motivation for the scammer to force the victim to concede.