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A comment on Bitcoins stolen from the users of Sheep Market Place?. Parent comment

Re:Bitcoins stolen from the users of Sheep Market Place? by ptrinh on Saturday November 30, 2013 @10:12AM (#6823315)
I think Bitcoin can be serve as a money transport protocol and Escrow services can be built on top of it. Think about buiding HTTPS on top of HTTP protocol.
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Re:Bitcoins stolen from the users of Sheep Market Place? by pyalot2 on Saturday November 30, 2013 @10:49AM (#6823414)
There different ways to implement escrow with bitcoin.

1) You could ignore all technicalities and simply send the coins to a third party which releases it back to you or forward to the merchant. That's probably the least recommendable way, but is the easiest to explain.

2) A smarter way to do it is to use bitcoins transaction script that can process multi signature transactions, which can work in a way that if A wants to send B money, he can setup an address that can only withdraw coins from if C also signs the transaction. This method is supported by Electrum and by the Blockchain.info wallet.

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