Transaction with Secret

[bitone]

I would like to transfer the ownership of a domain name over the bitcoin blockchain:

Let's say there is Alice, which wants to buy the domain name value.com and there is Bob which owns the domain name value.com. They negotiate via email and agree on a price of 1.000 BTC for this domain name.

As they live far away from each other, they only can transfer the domain name through an escrow service like escrow.com:

The escrow service receives the payment from Alice and receives the password for the domain name from Bob. After this, they Alice the password, after Alice that the password is valid they send Bob the payment.

Is it possible to transfer this asset over the bitcoin blockchain?

I understand that I could store a hash of the password in the blockchain, but I do not know how I can make sure that Alice receives a password when Bob makes a payment.

Thanks,

Bitone

[mda]

Alice puts 2 BTC and Bob puts 1 BTC in 2-of-2 multisig address. When she gets the asset Alice takes 1 BTC and Bob takes 2 BTC.

[kolloh]

Alice puts 2 BTC and Bob puts 1 BTC in 2-of-2 multisig address. When she gets the asset Alice takes 1 BTC and Bob takes 2 BTC.

Yeah, I think that mda's method of using a 2-of-2 multisig is a good idea. Both parties would need to agreen on the payment details and sign off on it. The only downfall is that either party could prevent the transfer of funds entirely. However, they wouldn't really have motive to do so as they wouldn't receive their share of the coins either but its always a possibility.

I don't think you would want to store the password hash within the blockchain. Its all in the method of escrow. You could code some sort of escrow service that awaits the confirmation of a transaction and releases the password but I don't think you can do this entirely on chain.

[actmyname]

Get an escrow to hold to password, make a 2-of-3 multisig so that it is not necessary for the escrow to release if they come to a resolution themselves. Then escrow sends the password (working) and releases funds

That should work, no?


As long as the escrow is my secretly working with one of the trading parties everything should work out smoothly. When this fact is affirmed, even if the escrow has selfish desires the trade would be able to go through since Alice and Bob could approve it themselves

The problems occur when two of the three parties don't want to follow through