Updating Escrow: Demystifying the CDM multisig process

Publications

Updating Escrow: Demystifying the CDM multisig process

12 July 2017
Global Drug Policy Observatory (GDPO)

Until now, the Crypto-Drug Market (CDM) escrow process has been described according to a historic centralised escrow system. However, centralised escrow is fast becoming obsolete, with four of the five most popular current CDMs now offering a form of decentralised escrow, known as multisignature (multisig). Multisig is therefore fast becoming the industry standard for ameliorating financial risk in CDM transactions. This Situation Analysis is intended to clarify the multisig process. It presents an analysis of the background to the shift toward decentralisation, a description of the new process, and a diagrammatic representation of the multisig escrow model.

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