Re: BitBay OFFICIAL BITBAY Thread Smart Contracts Decentralized Markets Rolling Peg
I don't quite understand how a unilateral system would work. In the second example, buyer puts up double, so 400 gets locked in contract? What if seller sends an empty box? Does the buyer reject the transaction and get all 400 back?
What if the seller did actually send his item but the buyer rejects the transaction anyway? Does the buyer get his money back while the seller loses his item?
I'm sure I must be missing something
What if the seller did actually send his item but the buyer rejects the transaction anyway? Does the buyer get his money back while the seller loses his item?
I'm sure I must be missing something
The seller of coins aka the person depositing $400 coins goes into a joint account with the buyer.
So lets say she was selling coins for cash. I think the term "seller" confused you.
Alice is selling $400 of COINS for cash. She wants Bob to trust her and this will be Bobs FIRST purchase of crypto.
They go into a DDE contract 2 of 2 joint account.
Now when Bob sends $200 in cash Alice can't steal it or Bob blows up the money.
They both release the contract and everyone wins.
The risk is that Bob just blows up Alices money before sending his cash. This is why it is critical for Alice to interview Bob in advance or decide how much money she wants to advance. She could even simply advance 200 dollars and a 10 dollar deposit just something nominal. So with her advanced payment she would not really have any logical reason to keep the cash if she is almost breaking even.
Guarantor work for sellers and buyers in trade deals as well or even employment contracts. If a person was buying a 200 dollar guitar, the seller of the guitar may not want to put up collateral as they don't hold much Bay. The buyer would then do something similar to the above scenario.