Author: Andrés G. Aragoneses 2021-02-13 04:50:21
Published on: 2021-02-13T04:50:21+00:00
In this conversation, Andres and ZmnSCPxj discuss the drawbacks of using an escrow system in a Bitcoin exchange. While it can increase risk for buyers who may not have any Bitcoin to offer as stake, it is necessary to ensure trust between parties and prevent fraud. They mention that existing P2P exchanges like Bisq face similar issues and that new users may need initial help from parents or other trusted sources to provide the required stake. ZmnSCPxj suggests that PTLCs (Point Time Locked Contracts) would be a better solution than dual-hash HTLCs (Hashed Time Locked Contracts), as they are more versatile and can accommodate any number of hashes. He also notes that any L2 wallet interacting with the escrow would need to be aware of it and suggests developing a 2HTLC extension to work with the current version of Bitcoin until Taproot is implemented.
Updated on: 2023-06-02T18:55:40.883084+00:00