Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Multi-judge escrow service: In class we saw how to use 2-out-of-3 multisig to build an escrow service where Alice can buy a product from Bob

Multi-judge escrow service: In class we saw how to use 2-out-of-3 multisig to build an escrow service where Alice can buy a product from Bob and, if all goes well, Alice gets the product and Bob gets paid. Otherwise a judge can adjudicate the dispute. One issue with that protocol is that the judge may demand a service fee and the participants, Alice and Bob, have no choice but to pay. In this question your goal is to design an escrow system where, ahead of time, Alice and Bob agree on the set of three judges so that during adjudication they can choose any one of the three to adjudicate. We are assuming that the three judges are honest and consistent, that is, all three will always rule the same way. 

a. Show how to implement a three-judge escrow system using a single standard multisig transaction to a multisig address that Alice and Bob agree on ahead of time. Your design must ensure that even if the three judges collude, they cannot steal the funds that Alice sends to Bob. Recall that if all goes well then the parties need not involve the judges. If something goes wrong, then any one of the three judges can adjudicate. Hint: You will need to use more than 5 keys in the multisig transaction. Alice and Bob will use more than one key each. 

b. Your solution from part (a) uses a standard multisig transaction, but the script must list more than five public keys. Write a script to achieve the same thing where each party is only assigned one key (only five keys total are listed in the redeem script).

Step by Step Solution

3.43 Rating (159 Votes )

There are 3 Steps involved in it

Step: 1

Question a If Alice and Bob make a transaction to a multisig address they agree on a threejudge escr... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

Use Demorgan's law to write negations for the

Answered: 1 week ago

Question

What are conversion costs? What are prime costs?

Answered: 1 week ago