Walletless System Explained
How Darkmatter prevents exit scams
🛡️ Revolutionary Security: Darkmatter's walletless system means your funds NEVER enter a market-controlled wallet. This makes exit scams mathematically impossible.
How Traditional Markets Work (Unsafe)
Old model:
- You deposit XMR into market's wallet
- Market holds your funds
- When you purchase, market transfers from their wallet to vendor
Problem: Market admins control ALL user funds. They can steal everything and disappear (exit scam).
Historical reality: AlphaBay, Empire, Dream Market all exit scammed with millions in user funds.
How Darkmatter's Walletless System Works
Revolutionary model:
- You place order
- Darkmatter generates unique multisig address
- You send XMR directly from YOUR wallet to multisig escrow
- Funds locked in 2-of-3 multisig (buyer, vendor, market each hold 1 key)
- Release requires 2 signatures
Key difference: Funds go directly to escrow, NEVER into Darkmatter's wallet. Market cannot steal what they don't control.
2-of-3 Multisig Protection
✅ Normal Transaction
Signatures: Buyer + Vendor
You receive product → Finalize order → Both sign → Vendor gets paid
⚠️ Dispute Scenario
Signatures: Buyer + Market OR Vendor + Market
Issue arises → Open dispute → Market moderator decides → Signs with winner
🚨 Market Offline Scenario
Signatures: Buyer + Vendor
Even if Darkmatter goes offline, you and vendor can still release funds (no market signature needed)
Why This Prevents Exit Scams
- ✅ Market admins cannot access funds (don't have 2 signatures)
- ✅ Maximum they control: 1 of 3 keys (insufficient to steal)
- ✅ Even if market database is seized, funds are safe in multisig
- ✅ You + vendor can complete transaction without market
- ✅ Cryptographic enforcement (not trust-based)
Comparison: Walletless vs Traditional
| Feature | Traditional Markets | Darkmatter Walletless |
|---|---|---|
| Exit Scam Risk | ❌ High (market controls funds) | ✅ Zero (multisig protection) |
| Database Seizure | ❌ Law enforcement gets all funds | ✅ Funds safe in escrow |
| Market Offline | ❌ Funds locked forever | ✅ Buyer+vendor can finalize |
| Vendor Scam | ⚠️ Refund if market honest | ✅ Guaranteed via multisig |