In order to create an offer, you must have your own Bitcoin wallet, and a release address saved in your settings on the site.
When you create an offer and someone accepts it, or you accept an existing offer, a contract is created.
Escrow is a P2SH Bitcoin multisignature address, which requires 2 out of 3 keys to sign the transaction.
Each time a contract is created between two parties, Hodl Hodl generates two unique multisig escrow Bitcoin addresses. Both counterparties then send bitcoins from their wallets to these escrows, and then bitcoins are stored there until contract completion. When the contract finalizes, the funds are released from escrow directly to the receiver’s wallet(-s).How do users obtain their keys to escrow?
The user's key is generated in the browser, and gets encrypted by the payment password, that the buyer and seller had created, prior to, or during their very first contract.When are the keys used?
Escrow keys are required in the following possible situations:
Client gets raw unsigned transaction, and when payment password is confirmed, the transaction gets signed with the user's decrypted key right in the user's browser. Then Hodl Hodl signs the transaction with it's key on the server side and broadcasts it to the blockchain.