The whole point of me making certain payments with crypto is for it not to be attached to my name. obviously the crypto service company has my cc details. whats the most privacy friendly one? ty :)
Let’s say I’m selling you a book B and accepting a crypto payment. What if you sent me your crypto C trusting me, but I exit-scammed, vanishing without sending you B you’re trying to buy? That’d be bad. But what if I sent you B first, trusting you’ll send me C as soon as you receive B? Now you could cheat and vanish without paying. That’d be bad too.
To prevent any of those things from happening, there are a few methods. One is a 2-of-3 escrow service. Another is 2-of-2. Both based on multisig. A simplified example follows.
The book costs you 100€. You’ll send, say, 200€ to address A controlled by both you and me via multi-signature. I too will send 100€ to A. Now Wallet A has 300€. When 2 persons (you and I) sign, there will be a 2-output transaction from A to you (100€) and to me (200€), but any single person can’t move fund from A. That’s multisig.
Now I must send you the book in a good condition, because I don’t want to lose my 100€. So I’ll act carefully and honestly, and sign when I ship the book. You too will be willing to sign when you receive the book, because otherwise you can’t retrieve your 100€ (you deposited 200, when the book only costs 100). Sometimes an unexpected accident may happen, but usually something like this will work pretty well. This is one way how a P2P platform works (not very accurate, but I hope you get the idea).
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Let’s say I’m selling you a book B and accepting a crypto payment. What if you sent me your crypto C trusting me, but I exit-scammed, vanishing without sending you B you’re trying to buy? That’d be bad. But what if I sent you B first, trusting you’ll send me C as soon as you receive B? Now you could cheat and vanish without paying. That’d be bad too.
To prevent any of those things from happening, there are a few methods. One is a 2-of-3 escrow service. Another is 2-of-2. Both based on multisig. A simplified example follows.
The book costs you 100€. You’ll send, say, 200€ to address A controlled by both you and me via multi-signature. I too will send 100€ to A. Now Wallet A has 300€. When 2 persons (you and I) sign, there will be a 2-output transaction from A to you (100€) and to me (200€), but any single person can’t move fund from A. That’s multisig.
Now I must send you the book in a good condition, because I don’t want to lose my 100€. So I’ll act carefully and honestly, and sign when I ship the book. You too will be willing to sign when you receive the book, because otherwise you can’t retrieve your 100€ (you deposited 200, when the book only costs 100). Sometimes an unexpected accident may happen, but usually something like this will work pretty well. This is one way how a P2P platform works (not very accurate, but I hope you get the idea).
Ah, sorry, thought you were talking about ETH-style onchain DEXed. All good then!