Bitcoin Exchange Hodl Hodl Launches Multisignature Contracts
Hodl Hodl has enabled 2-of-3 multi-signature contracts in trades through its platform. The exchange has also continued to offer, 2-of-2 contracts.
2-of-2 multisignature contracts offered by Hodl Hodl only require the signature of the seller and the exchange. The new contract type offers the buyer more leverage in trading and disputes. This can be seen as a sample where a given rate was agreed upon but the seller is attempting to back out.
What this means is that each party must consent to the movement of the coins. The exchange said:
“In a regular 2 out of 3 contract, where everything goes well, buyer’s key is not needed — it only comes into play if the contract was disputed, and Hodl Hodl administrator resolved it in favor of buyer. In this case, buyer is able to sign a release transaction with his key and receive the funds without seller’s participation. This is how the 2 out of 3 contract type works.”