Is it possible for there to be a market in which an exit scam would be impossible?

Think of it as a "devolved" market, where vendors still list their products and consumers still buy them, but no BTC is held on the site. You transfer BTC directly from your local wallet to the vendor's. I think it could go well - only problem is I'm not sure how escrow would work.


Comments


[2 Points] multiplax:

2/3 multisig solves exactly this problem. The buyer, the seller, and the admin each generate a key pair, and 2/3 of them are required to spend the funds. If all goes well, the buyer and seller release escrow together. If there's a dispute, then the admin arbitrates, and releases escrow together with the winning side. The admin can't steal funds without collusion of either the buyer or the seller.

Bitcoin supports this. There is no need to use an altcoin, though most altcoins also support this. OpenBazaar supports this (using Bitcoin), but has many features unsuitable for privacy-conscious users---read their own FAQ. Some centralized markets support it now, but either the market briefly handles all the private keys (which defeats the purpose, since they could keep a copy), or you have to take some extra steps in your wallet software.

This solves a real problem, so it will get adopted. That's slow but inevitable.


[1 Points] RosyPalm:

You've eliminated the chance the DNM can scam by increasing the ability for individuals to scam with impunity.

As long as keeping buyers and vendors anonymous is important, you'll always have scammers (and law enforcement) exploiting that anonymity for their own ends.

The current DNM SOP isn't perfect, but warts and all, it's still better then most of the current alternatives.


[1 Points] samwhiskey:

Syscoin has been working on decentralized markets on the block chain with the ability to use 3rd party multisig escrow.


[1 Points] dikkkhead:

The syscoin project seems extremely innovative.

I think markets could devolve escrow to users.

There may be a place for 'professional escrow' where people gain a reputation for fairness, diligence and resolution speed.

Then these people or groups act as (visibly backed) Escrow/resolution agents for a fee, allowing the general market to decide the 'price' of escrow and helping markets not want to pull the plug.

The transaction is setup such that all monies in escrow can/must be sent to vendor, buyer or both.

Buyers just pick an Escrow user from a list. Vendors apply to Escrow 'sellers' individually.


[1 Points] lolrule2:

That's like asking if you can microwave a burrito so hot that God himself couldn't eat it. Wut?


[1 Points] PedanticDopeFeind:

Multisig.


[1 Points] Oxilic:

Open Bazaar


[1 Points] tryptdn:

That's basically a market with only multisig. Which more markets should support.