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Offline MrJeans

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Escrow, DAC
« on: December 20, 2013, 02:49:05 PM »

a DAC providing an escrow service.

It could function in two ways:

1)
The client is launched along with a new cryptocurrency called EscrowShares.
People would mine escrow shares, which are the only means of using the service. Thus, hopefully the value of escrow shares will increase as the service gets used.

Customer will pay Merchant using EscrowShares for delivery of a product but the EscrowShares are first held by the network. Upon receiving the product Customer sends a signal to the network that releases the EscrowShares to Merchant.

A percentage of the transaction is taken by the network as payment for the service. This percentage is then distributed among EscrowShare holders and miners.


2)
The DAC makes use of bitcoin for transactions.

Customer uses Escrow, DAC to send bitcoins to Merchant, but the bitcoins are first held on the bitcoin network by Escrow, DAC.

The DAC creates new bitcoin public and private keys for each escrow transaction and holds the bitcoin received from the customer on this address.

Once the customer receives the product from the merchant, the customer sends a signal to the Escrow, DAC network and the bitcoin is released to the Merchant.

A small percentage of the transaction is taken (in the form of bitcoin), and is distributed among persons running the client (which is needed to secure the network and process transactions).


Hope the community finds this interesting and I look forward to hearing your thoughts.
Together we could turn this rough idea into something cool and useful.

Offline seraphim

Re: Escrow, DAC
« Reply #1 on: December 20, 2013, 03:10:08 PM »
Customer will pay Merchant using EscrowShares for delivery of a product but the EscrowShares are first held by the network. Upon receiving the product Customer sends a signal to the network that releases the EscrowShares to Merchant.

How should this work? Customer needs a possibility to get his EscrowShares back if Merchant doesn't deliver. But nothing would stop him from using that to get them back, even if the Merchant delivers.
Escrow, DAC would need to be able to check all blockchains of tradable coins to verify transactions.
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Offline MrJeans

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Re: Escrow, DAC
« Reply #2 on: December 20, 2013, 04:05:04 PM »
Customer will pay Merchant using EscrowShares for delivery of a product but the EscrowShares are first held by the network. Upon receiving the product Customer sends a signal to the network that releases the EscrowShares to Merchant.

How should this work? Customer needs a possibility to get his EscrowShares back if Merchant doesn't deliver. But nothing would stop him from using that to get them back, even if the Merchant delivers.
Escrow, DAC would need to be able to check all blockchains of tradable coins to verify transactions.

So to answer your first question. Yes, the customer not being able to get their coins back is a limitation of the service. Perhaps someone will find a solution to this.
The idea is that the escrow service will be better than simply making a transfer and hoping for the best.

Would you send someone some bitcoins (millibits rather) and hope they deliver the product. Or would you use this escrow service which would incentivise the merchant to deliver the product otherwise he/she wont get paid.
In the first scenario you loose and dodgy merchant wins. Using the escrow service, you loose and dodgy merchant gets nothing, thus why would dodgy merchant even bother.

I'm not understanding the second part of your comment. Please clarify.

Offline seraphim

Re: Escrow, DAC
« Reply #3 on: December 20, 2013, 04:24:04 PM »
If the DAC could verify the transactions on the blockchain it would be possible for Customer to get his shares back when Merchant doesn't deliver.
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