🔑 Multisig Escrow - Advanced Security
Understand how 2-of-3 multisig transactions protect your funds
What is Multisig?
Multisig (Multi-signature) is a cryptocurrency address that requires MULTIPLE keys to release funds.
How does 2-of-3 work on a marketplace?
Key 1
Key 2
Key 3 (backup)
Scenario 1: Everything goes well
Buyer + Vendor sign → Funds go to vendor
Scenario 2: Dispute
Buyer opens dispute → Marketplace decides → Signs with winner
Scenario 3: Exit scam attempt
Marketplace CANNOT take your funds alone - needs buyer's OR vendor's key!
Benefits of Multisig
Exit Scam Protection
Marketplace can never steal all funds
Fair Dispute Resolution
Neutral third party can resolve disputes
Control
You control your key - not the marketplace
How to use Multisig?
-
Create order
Marketplace generates a multisig address
-
Pay
Send XMR to generated address
-
Wait for delivery
Funds are locked in multisig
-
Finalize
You sign with your key to release payment to vendor
Monero and Multisig
Monero Multisig process:
- Key exchange between all parties
- Generation of multisig address
- Deposit of funds
- Wallet synchronization
- Partial signing by 2 parties
- Final transaction
Most marketplaces handle this automatically - you just need to click "finalize".
Multisig vs Centralized Escrow
| Multisig | Centralized | |
|---|---|---|
| Exit scam risk | Low | High |
| Complexity | Higher | Lower |
| Your control | Full key | None |
| If marketplace disappears | Can recover | Funds gone |
Best practices
- ✓ Prefer marketplaces with multisig support
- ✓ Save your multisig key securely
- ✓ Finalize promptly after confirmed delivery
- ❌ NEVER share your private key
- ❌ Do NOT accept requests to skip multisig