The problem with multisig

Everyone on this sub has been talking about multisig markets for a long time but it still hasn't happened.

Something I noticed that hasn't been mentioned is, wouldn't multisig make it easy to link market deposits directly to transactions? And I think that's a bigger problem than risk of exit scams.


Comments


[2 Points] InconvenientIdeals:

No. It wouldn't make it easier. Because there are any number of ways to immediately make the trail go cold that aren't hard or abnormal. It's certainly a scary new territory and I'm sure many are unwilling to fully embrace the implications but that doesn't really mean much. There are vendors who've been multi-sig adopters for a long while now. Hansa, East India Company, Outlaw, Valhalla all offer a decent or better multi-sig. Once one or two markets more take their leave you very same people will not only be okay with it, but demand it as a basic quality and those who don't want to keep up will be increasingly irrelevant in all likelihood. But then again I'm just speculating.


[1 Points] CocaineNose:

how so? wouldn't it be exactly the same?


[1 Points] None:

There are quite some multi-sig transactions going through the Blockchain. Now lets say multi-sig becomes the new norm; to proof any illegal actions these multi-sig transactions need to be linked to a market. Considering a multi-sig market does not have a central wallet it's not possible to link it back; thus there won't be any proof that the transaction you created or received was in any way involved with the darknet.


[1 Points] sindy_1202:

It hasn't happened because most markets implement it very shitty so people don't use it.

Also people just need to switch out the keys they use regularly and tracking transactions will be beaten.


[1 Points] octomarvel:

Correct me if I'm wrong but if you pass it thru a non market wallet before you deposit it onto the market place, doesn't that give you plausible deniability?

As long as the off market wallet you pass it thru is not connected to you, you can claim you paid someone online for something into it and if it gets traced from there into the market, that's all the hypothetical wallet owners doing and not yours.


[1 Points] attilathehunn:

More than 9% of all bitcoins are held in p2sh-multisig addresses. Lots of exchanges and bitcoin users have it for security. See this site: http://p2sh.info/ So using multisig doesn't make your transactions stand out too much, and you should be mixing anyway if you're a vendor.


[0 Points] 9rkgjjgj:

OP you are correct, multisig does not offer any privacy protections. When you use multisig you create a publically static blockchain transaction denoted by the prefix '3', the buyer is linked to the seller and both are linked to the market. Presumably depending on how to the market handles its key creation for every ms transaction all parties are linked to that markets wallet via blockchain analysis. Normally this is obfuscated with central escrow offchain tumbling. There is no way to offchain multisig.

But to keep things in perspective buyers can mix prior, vendors can mix therafter, and in the end the weak point of usd exchange can be broken regardless. The biggest issue is for those who do not mix their coins and for vendors whose addresses can be gleaned from undercover buys, which may reveal their total income.

FYI ZeStellarator is a moron btw please dont entertain the morons.