Why do I need to use threshold signature vaults?
A threshold signature wallet is a tool that is used to ensure that a trade process is conducted in an appropriate manner. This means that once a user is ready to trade on our platform, they top-up their account on WhalesHeaven and this top-up is then sent directly to the threshold signature vault that ensures no one, including us, has any access to these funds.
Once the user finds a buyer on our platform, the buyer will be asked to provide their funds in another threshold signature vault under the same terms. Only once both the buyer and seller confirm and sign the release of these funds from the WH cypher extension will the transaction go through. This confirmation has to happen within a 1-hour time frame after a buyer is found, otherwise the transaction will be considered unsuccessful. Learn more about the time limit here.
Why threshold signatures (TS)?
Threshold signature vaults are created to be a different option for single-key addresses. TS vaults involve a process requiring more than one party to authorize a transaction through multiple keys in a crypto transaction, which avoids:
- Single-point failures, making it difficult to be accessed by a third-party.
- Losing your wallet, thanks to an M-of-N backup.
- Single access control, which means you are required to have at least two participants to agree in the transactions to release the funds.
How do threshold signature (TS) vaults work in WhalesHeaven?
In WhalesHeaven we operate by creating 2-of-2 threshold signature vaults, so when you participate in an offer the deal process is based on threshold signature wallets between the seller, the buyer, and our platform. This is to provide an extra layer of safety to ensure that all the funds you send in an exchange are protected and can only be released once you have given the approval to release them from your wallet.
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