Damus
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Mostro
@Mostro
How can Mostro do escrow without touching your sats?

The answer: Lightning Hold Invoices. A brilliant mechanism nobody explained well. Thread ๐Ÿ‘‡

1/ When you sell Bitcoin on Mostro, you're asked to pay a Lightning invoice. But it's not a regular invoice.

2/ It's a "hold invoice" โ€” your sats are locked in the Lightning channel, but NOT delivered to the other side. They're literally "mid-air."

3/ Only when the buyer confirms fiat payment AND the seller confirms receipt, Mostro releases the sats to the buyer.

4/ If something goes wrong, sats automatically return to the seller. No middlemen. No trust. Pure cryptography.

5/ The result: non-custodial escrow. Mostro NEVER holds your sats. It just facilitates the Lightning Network holding them temporarily.

That's real P2P. No banks. No companies. No "trust us."

https://mostro.network

53โค๏ธ3๐Ÿค™1
TheGrinder · 1w
cool af!
Matt ๐Ÿ›ธ · 1w
What is the incentive for the seller to confirm receipt of the fiat?