CoinCola.com Multisig White Paperhttps://pbs.twimg.com/media/Bv9ENmmCEAEUd_M.jpg:largeScript language of Bitcoin is not complete, but it still provides convenience for application development. Bitcoin has powerful vitality that it can developed by itself. Multisig is based on the p2sh(pay to script hash) protocol which supported by Bitcoin. P2sh protocol introduces M of N (M≤N)judgment system of Bitcoin proprietary rights. That is, multisig site is created by several public keys, and transfer of Bitcoin is made by private keys. By utilizing this technology, we can solve many problems creatively. Next we will introduce how is multisig used in CoinCola.com (
www.CoinCola.com) — the cryptocurrency trade e-commerce platform.
Two kinds of traditional cryptocurrency trade process: 1.Buyers transfer Bitcoin to sellers’ Bitcoin address directly. If there is a dispute between sellers and buyers, their credit is the only thing to be counted. (You can certainly choose to believe celebrities’ credit. It depends on you. Or you can choose face-to-face transactions, and then wait for confirmation for 6 times)
2.Based on centralized hosted services, you can transfer Bitcoin to centralized hosted account. In this case, hosted service providers have Bitcoin proprietary rights in essence. In other ways, platform’s private keys can control your Bitcoin. If There is an emergency such as moral hazard or hacer break-in, security of transaction wouldn’t be ensured. (This is the reason why need to worry about account security.. Your Bitcoin is controlled by other parties. Deposit is just a kind of restriction of ethics.)
CoinCola.com uses multisig to change the approaches to cryptocurrency tradeIn cryptocurrency trade process with multisig of CoinCola.com. Buyers, sellers and platform each have a private key and their corresponding public keys. Based on a 2-of-3 multisig escrow, CoinCola.com is a safer and easier to use e-commerce platform that can safeguard customers’ property. It is important to note that both buyers’ and seller’s private keys is encrypted by users’ own password in browsers. It means CoinCola.com can never get users’ own private keys. CoinCola.com will create a multisig payment site according to buyers or sellers in transaction and platform’s public key. ( The site is possessed by three parties)
Describe the process of operation by CoinCola.com according to the process of refundhttps://pbs.twimg.com/media/Bv9EvXpCAAAAUAl.jpg:large1. Process of normal refund
When buyer applies for refund and enter the address of refund, the codes run in browser will sign the transaction which refund from the trade multisig site to refund site by buyer’s private key. Seller confirms refund and then the codes run in browser will sign the transaction by seller’s private key. In this case 2 of 3 parties sign the transaction, and then this transaction will broadcast to Bitcoin network. Buyer will get his refund.
2. Process of disputable refund
When buyer applies for refund but seller doesn’t agree, CoinCola.com will arbitrate the transaction based on information provided by both sides, such as express postal information. If CoinCola.com arbitrates in the refund, CoinCola.com and buyer will sign the transaction. In this case, 2 of 3 parties sign the transaction, and then this transaction will broadcast to Bitcoin network. Buyer will get his refund. (Maybe someone worries about CoinCola.com collaborating with buyers to conduct fraud. Yes, it is reasonable. But CoinCola.com doesn’t have to collaborate with someone to deceive just for such benefits. Technology solves 95% of problems, and the other is 5% of problem. CoinCola.com is already perfect)
Transaction in CoinCola.com:1. Secure: Bitcoin in transaction is safe by multisig. CoinCola.com can’t Approprite customer transaction settlement funds and each Bitcoin is under the public supervision by both sellers and buyers.
2. Customer guaranteed: After normal Bitcoin trade, sellers can touch the money immediately and buyers are weak groups. In CoinCola.com, only after conformation by buyers can sellers get Bitcoins in trade. In this case, CoinCola.com protects the lawful rights and interests of consumers effectively.
3. Usability: Customers don’t have to know about complexity of multisig by technology packaging. The usage experience of CoinCola.com is similar to Taobao’s and EBay’s.