Multisig Tutorial
Technical deep dive into 2-of-3 multisignature
🔐 Cryptographic Security: Multisig means funds can only be spent with multiple signatures. No single party (not even Darkmatter) can steal your escrowed XMR.
What is Multisig?
Multisignature (multisig) = cryptocurrency address requiring multiple private keys to authorize transactions.
Darkmatter uses 2-of-3:
- 3 parties hold keys: Buyer, Vendor, Market
- 2 signatures required to move funds
- Any 2 parties can complete transaction
How It Works Technically
- Key Generation: Each party (buyer, vendor, market) generates a private key
- Address Creation: Public keys combined to create multisig address
- Payment: You send XMR to this multisig address
- Spending: Requires 2 of 3 parties to sign transaction
Mathematical guarantee: Bitcoin Script/Monero multisig enforced by blockchain consensus. Cannot be overridden.
Why 2-of-3 is Ideal
Prevents Vendor Scam
Vendor cannot steal funds alone (needs your signature or market's)
Prevents Market Exit Scam
Market cannot steal funds alone (needs your signature or vendor's)
Allows Dispute Resolution
If buyer-vendor disagree, market moderator breaks tie with 3rd signature
Works if Market Offline
You + vendor still have 2 signatures (can complete without market)
Transaction Scenarios
| Scenario | Who Signs | Outcome |
|---|---|---|
| Normal Purchase | Buyer + Vendor | Vendor gets paid |
| Buyer Wins Dispute | Buyer + Market | Buyer gets refund |
| Vendor Wins Dispute | Vendor + Market | Vendor gets paid |
| Market Offline | Buyer + Vendor | Transaction completes anyway |