HANSA Multi Sig vs. Alpha Bay

My friend is trying to tell me that although AB offers mutisig it is not a true multisig transaction but that HANSAs is? Is this true? He seemed to know what he's taking about.


Comments


[8 Points] None:

Hansa allows you to keep the funds in your electrum wallet until you finalize the order. so basically you never actually transfer coins to the market like you do on AB. so youll never loose them due to an exit scam.


[2 Points] None:

What is Multi-Sig ?

Multi-sig is a protocol within Bitcoin which lets up to three Bitcoin addresses lock funds into a single transaction wallet.

There are two forms of multi-sig: 2-0f-2, which locks funds into place using 2 addresses and 2-of-3 which does this using 3 addresses.

For either version only 2 addresses are needed to unlock and release the coins. On HANSA the addresss are assigned to escrow like this:

2-of-2 Multi-sig escrow: Hansa Public Key + Vendor Public Key

2-of-3 Multi-sig escrow: Hansa Public Key + Vendor Public Key + Customer Public Key

Which version is better?

2-of-3 Multi-sig escrow offers a higher security than 2-of-2 since if the vendor ever dissapears or loses his keys the the coins are lost im Limbo.

If the same happens within 2-of-3 escrow the order can still be finalized as two other parties have key which can release the transaction.

2-of-2 Multi-sig escrow is easier to use as it requires no additional steps but 2-3 is a much better choice for escrow.

HANSA recommends the 2-3 setup over 2-2 if you can go through the extra steps to set it up.

What makes multi-sig better than regular escrow?

  1. Since the funds are locked between two or three people it is impssoble for the market or law enforcement to steal the funds out of escrow.
  2. For each order we offer "Locktime" transactions, ensuring that the vendor can retrieve his funds after 90 days should the market ever go down.
  3. If used right transactions in Escrow are insured against any losses. A big reason why we do not allow FE on on Hansa.

What is Locktime?

In short: Locktime is a second transaction we provide the vendor with. Should Hansa go offline the vendor can still finalize the order with this transaction.

This transaction only activates after 90 days of Escrow. To avoid abuse all disputes are settled within this time frame and we limit the volume of 2-2 orders.

FAQ:

What happens when I lose the private key of a 2-2 key as a vendor?

You will not be able to retrieve the coins in Escrow.

What happens when a vendor gets banned and I have a 2-2 transaction with him?

The refund process will take much longer as they have to be paid from our own pockets.

What happens when I lose the private keys to a 2-3 key as a vendor?

If the customer has his key he can contact support and we will finalize the order for you.

What happens if I as customer lose my multi-sig key?

If the vendor is inactive on this market you will need to wait for him to return in case of a refund.

What happens if I lose access to my Bitcoin return address in my settings?

If we have not issued a refund you can always change it. If we have issued one the coins are lost.

Do I need to sign a transaction as a customer?

No this is done automatically. Only the one time setup and possible signing for a dispute.

Who has access to the coins in Escrow?

Nobody, the address has no private key. The coins are suspended by the 2 or three keys until a transaction is signed.

If the market goes offline do I as a customer get back my coins?

No, but the vendor will. Since their money is insured it is in their best interest to still send out the ordered product.

Is there any information I need to save from a multi-sig order?

As customer and vendor it is handy to copy the "Multisig Redeemscript" so orders can be finalized without the market.

As a vendor download the locktime transactions which can be used to finalize the order after 90 days by yourself.

Can I change or remove my multi-sig address while orders is in transit?

Yes but don't lose track off the assigned addresses

Can I change multi-sig keys on a shipped or accepted order transaction?

No, if a key has been assigned to a transaction it is not possible to change this.

Can I change my Bitcoin return (refund) address while my order is in transit / dispute

For customers, yes. For vendors, yes but the address will be assigned to current Locktime transactions.


[1 Points] HansaFanboy:

Hansa offers simple and noob friendly 2-2 multisig transactions and also very secure 2-3 multisig transactions. Even the idea behind Hansa is to minimize scam opportunities.