Guide for multisig transactions in Alphabay market – Quoted from the market:
We are pleased to announce that AlphaBay Market now supports multisig transactions! This was requested a long time ago by the community so we decided to step up our game a bit and go for this option.
We are now the only marketplace on the Deepweb having ALL of the following security measures (source: DeepDotWeb’s marketplace list):
– Multisig transactions (2/3)
– Withdrawal PIN
– Vendor bond
– Forced vendor PGP
For the less tech-inclined, here’s how a multisig transaction works:
1) Both the buyer and the seller must have set their public Multisig key in their profile.
2) The buyer deposits 4% of the item value in his AlphaBay wallet to cover market fees.
3) The buyer purchases the item, then a multisig Bitcoin address is generated using the buyer’s key, seller’s key, and a market-generated public key (2/3). Both parties can use this publicly-viewable information to verify the authenticity of the address.
4) The buyer sends money to this address, and the seller ships the goods.
5) If the buyer is happy, he finalizes, and the seller received the market private key.
6) In case of dispute or refund, the buyer receives the private key.
7) Whoever got the private key will use it, along with his own private key, to claim the coins.
To make it simple: buy the product, and you get a BTC address to send the coins to. Seller gets the private key when you finalize. You get the key if you dispute and win.
This is a fool-proof method to avoid exit scams. You never give your private keys to anyone.
We don’t provide help in cashing out the multisig address. You have 2 private keys out of 3, so you are supposed to know the rest. If you lose your private key, it’s too bad.