The Peer-to-Peer (P2P) crypto exchange Hodl Hodl has introduced a new type of multisignature escrow account available for contracts. Going forward, at the time of offer creation, every user will be able to choose what type of contract will be created by the offer. For instance, whether it is a 2 out of 2 or 2 out of 3 type of contract.
In the case of 2 out of 3 contracts, buyers will now have some amount of control over the funds that are locked in escrow. That is possible as one of the keys belong to the buyer himself and the other two belong to the exchange and the seller. Hodl Hodl also stated that its 2 out of 2 contracts are still available for users for trading.
Crypto exchange Hodl Hodl generates a unique multisignature escrow cryptocurrency address in every trade, where the seller locks the funds and the buyer then sends the payment. The seller releases the funds held in escrow directly to the buyer’s wallet only after he has received the payment.
In case of a regular 2 out of 3 contracts, the buyer’s key is not required. It only comes into play in case the contract was disputed and the administrator of the exchange resolved it in favor of the buyer. In such a case, the buyer has the right to sign a release transaction with his key and thus receive the funds without the seller’s participation. This is typically how a 2 out of 3 contract works, as stated in the Medium blog of the P2P exchange.
As early as 1994, the idea of smart contracts was first conceived by Satoshi Nick Szabo. Smart contracts are a new age technology that’s brought about by the Blockchain revolution enabling everything from estate bequests to secure subscriptions. Among others, programmable smart contracts are at the heart of the Ethereum decentralized application ecosystem, as reported on CCN.
Crypto exchange Hodl Hodl’s contract type 2 out of 2 means that 2 keys are required for a release. In total there are 2 keys to escrow where one key belongs to the seller and the other to the exchange. Every user specifies what type of contract will be created with this specific offer at the time of the offer creation process. The contract type will be shown in the offer list for other users once the offer is created.
The post P2P Crypto Exchange Hodl Hodl Introduces New Type Of Multisignature Escrow Account appeared first on OWLT Market.
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