The mechanism people cite most and explain least. It is simple, and the simple version is the honest one.
- What it literally says
- That two of three parties must sign for funds to move.
- What it actually means
- The funding key is split across buyer, vendor and platform. In normal completion buyer and vendor sign and the platform key never appears, so an ordinary order does not depend on the platform being available or honest.
- What it does not mean
- That the platform is powerless or that your money is safe. The platform key is a tiebreaker in a dispute, and the arrangement says nothing about delivery, your own account, or funds not committed to an order.
- What to do
- Understand which of your money is under this arrangement and which is not. Only committed orders are.
- If it looks different
- A vendor offering single signature settlement is offering to remove this. It is occasionally available and it is a poor trade from the buyer side.
CommonDefault arrangement
Needs actionKnow what it covers
Warning signSingle signature offers
What it structurally prevents
A platform disappearing with escrowed funds, because doing that requires a majority of vendors to actively sign away their own money. That has not happened at scale in recent years and would be visible almost immediately. It is a genuinely strong guarantee and it deserves stating clearly before the qualifications.
What it leaves untouched
- A vendor who does not ship. That is a dispute, decided on evidence.
- Your own compromised account. Whoever holds it signs as you.
- Anything paid outside the arrangement. No mechanism exists at all.
- A balance not committed to an order. Covered in available balance.
- What you actually receive. It decides when money moves and has no opinion on goods.
How to state it fairlyThe honest summary is that it moves the platform from trust required to trust minimised. It does not remove the platform from the picture and it does not make anything else about the transaction safe.
Single signature, when it appears
Some vendors offer it and a small number of buyers accept, usually for a discount or because it is presented as simpler. Accepting gives up everything above in exchange for marginally faster settlement. Worth noticing which arrangement you are agreeing to rather than assuming, because the interface does not always make it loud.