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Archive / Timeline / How escrow evolved from a promise to split keys

How escrow evolved from a promise to split keys

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Escrow is the one feature that has been rebuilt from scratch twice, and each rebuild followed a period of people losing money in a predictable way.

First generation, trust the operator

Payment went into an account the market controlled and the market promised to pass it on. That is not escrow in any meaningful sense, it is custody with good intentions, and it failed the way custody without accountability always fails.

Second generation, pooled wallet with process

Markets added dispute procedures, staff and published policies while still holding funds in one pool. Better for ordinary disputes, unchanged for the case that actually destroys people, which is the operator going away with everything at once.

Third generation, split keys

Each order locks into an address requiring two of three keys, held by buyer, vendor and market separately. The operator can break a tie in a dispute and cannot move funds alone. This is the current design and the reason it is worth understanding is that it changes what happens on the worst day rather than a normal one.

What each generation fixed

GenerationFixedStill broken
Trust the operatorNothing structuralEverything
Pooled with processOrdinary disputesOperator disappearing
Split keysOperator disappearing with order fundsBalances parked outside orders

That last row is the one to sit with. No escrow generation has ever protected money that was not attached to an active order, and no future one will, because the problem is not technical.

Verified addresses referenced in this archive

Verified Nexus Market addresses
M1nexusb2l7fmqnefwphyy7m5zjhlkytlbo7qbb5lu5dlczr3azgii2gyd.onion
M2nexusma2iegzo7atzwbrwxhcdopyri3vare2twibldnlc3txqjdeb5yd.onion
M3nexusabcd6tyfhdwilyitaqiri6tisj2v2hueyjuj6qkvd6azvi5tuqd.onion

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