How 2 of 3 multisig works

The three keys

• Buyer key, held by you, generated at order time.
• Vendor key, held by the vendor.
• Platform key, held by the market operator.

Any two signatures release the coin from escrow. The third is not needed.

The happy path

1. You place an order. The market generates a 2 of 3 multisig address for the coin.
2. You deposit into the multisig address.
3. The vendor ships.
4. You mark the order received.
5. Buyer and vendor sign the release. Coin moves to the vendor. Platform key never moves.

The dispute path

1. Either buyer or vendor opens a dispute.
2. A moderator reads both sides of the message thread, checks vendor history, judges.
3. Moderator cosigns with whichever side they judge correct.
4. Coin releases based on the two signatures.

What multisig fixes

The classic exit-scam pattern. The market cannot walk with your deposit alone because it holds only one of three keys per order.

What multisig does not fix

Seller fraud (a vendor can still ship you a rock). Bad arbitration (a moderator can side wrongly). Both of those are people problems, not protocol problems.