0

I know that multisig (n of i) transactions provide a decentralised escrow mechanism. Let's say we have a 2 of 3 address. What happens if funds are sent to the multi-sig address and say the seller is hit by a bus before posting the adorable Hello Kitty™ mug that you bought?

Does the 3rd party simply sign a transaction returning the coins to the buyer?

What about the general case of an address where n == i? Are the coins lost?

2

What happens if funds are sent to the multi-sig address and say the seller is hit by a bus before posting the adorable Hello Kitty™ mug that you bought?

Does the 3rd party simply sign a transaction returning the coins to the buyer?

Yes, if your address has a public key for 3 users, and you have problems receiving your goods, you can ask the arbitrator to sign review the situation and maybe create a transaction which pays you the money in the address. You sign, he signs, you get a refund. It's at the whim of the arbitrator.

What about the general case of an address where n == i? Are the coins lost?

Yes, if anyone loses their key, and the address requires same number of sigs as public keys, you cannot recover the funds.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.