The Hodl Hodl Non-Custodial Process: A Step-by-Step break down!
So how do you trade without someone in the middle holding the funds?
1️⃣ You Create an Offer to trade your bitcoin or choose from an existing offers list.
2️⃣ When a contract is initiated, a multi-signature escrow BTC address is created. This address temporarily holds the seller's Bitcoin, but it requires 2 out of 3 keys to unlock.
3️⃣ The Three Keys:
🔑 One key is held by the seller.
🔑 One key is held by the buyer.
🔑 One key is held by Hodl Hodl (used to intervene in a dispute during the trade).
4️⃣ The Fair Swap: The buyer sends the fiat payment to the seller via an agreed-upon method (bank transfer, etc.).
5️⃣ The Release: Once the seller confirms receipt of the payment, both the buyer and seller collaboratively sign to release the Bitcoin from the escrow to the buyer.
🔥 The crucial takeaway: Hodl Hodl cannot run away with the funds. We cannot freeze or halt withdrawals. The power remains with the traders.
