Glossary

How do you use P2P Escrow on the Dark Web?

Most commonly used to refer transactions using ‘P2SH’ addresses as defined by BIP 016. A public key is provided by a seller, market, and vendor, and used to create an address which requires two of the three parties to sign in order to redeem. The buyer then pays to this address. The ‘redeemScript’ is extremely important because it details the information needed to redeem funds sent to the address, which is a hash of the redeemScript. The goal of this method is that no one party has enough information to take funds from these P2SH addresses. Even if the market is hacked or taken down, the funds cannot be seized, and a buyer and seller can, with the redeemscript, finalize a transaction outside of the market’s involvement if they choose to.

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