One of the oldest mantras in Bitcoin [BTC] commerceis: “never leave your coins on the exchange.” Thisknowledgeis borne of theexpertiseof Mt. Gox traderswhoantecedently lostseveralcountlessdollarsin Bitcoin.
Yet,moreoverthanneverleavingyour coins onanexchangeis rarelyputtingthemwithin thecustody of the exchangein the1stplace. However for the most part, exchangesdon’tallow tradersto do this. Hodl Hodlcould be ararityin thisaspect andhasraised the baronce againenabling2-of-3 multi-signature contracts in trades through its platform. The exchange hadantecedentlyoffered, and continuesto provide, 2-of-2 contracts.
Buyers Trading With More Confidently
2-of-2 multi signature contracts offered by Hodl Hodlsolelyneedthe signature ofthe vendorand therefore the exchange. The new contract offersthe clientadditionalleverage incommerceand disputes. An example disputemay bewherea given rate wasagreedbut the vendoristryingto back out.
Whatthis suggestsisthat everypartyshouldconsent to the movement of the coins,whereverantecedently theremay havebeen an expected attack vector orriskof scamwhencoins were still in motion.within the words of the exchange itself:
In a regulartwooutof threecontract,whereeverything goes well, buyer’skeys arenot needed — itsolely comes into play if the contract wascontroversial, and Hodl Hodl administrator resolved it in favor ofcustomer.During thiscase,customeris ableto sign areleasetransactiontogether with hiskey and receive the fundswhile notseller’s participation.This is how the concept of the twooutof threecontracttypeworks.
More Than Just A Buzz
Firstlyvisualized bysuspectedSatoshi Nick Szabo in the early’s 1994,smartcontractsareanothernew age technologybroughtby the Blockchain Technology,enablingeverything from secure subscriptions to estate bequests. Programmable smart contractsareatthe focusof the Ethereum [ETH]decentralisedappschemes.They permitfor fine-tuning of agreements andarepossiblyto be outlined within law and taxationinthe mere future.Whereastraditionalcontractsneeda colossallegal exercise to revoke, smart contractscouldhave automatic impositions of penalties or revocation.
More than justsimplymoney,smartcontracts can offer exciting opportunities in computing, government, business, and beyond. Combined with the transparency of a blockchain, such contractsareon courseto revolutionize the traditional methods ofoperations.