Why not use 2-of-2 multisig instead of escrow

spederan
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Why not use 2-of-2 multisig instead of escrow

I was just thinking of the model that businesses like localmonero uses, where if two people have a dispute, they are using an escrow account, so the third party steps in to arbitrate it.

But why have that extra step, when you could just use a 2-of-2 multsig? The other party could be dishonest, but they cant steal coins, the worst they can do is get someones coins locked. And to mitigate that issue you could have some lightweight reputation system. In fact, this reputation system doesnt even need to be subjective, maybe you can cryptographically prove the ratio of their completed trades to outright abandoned ones.

I know theres something "nice" about escrow, because you probably trust the exchange more than some random jerk. But its not without its own problems either. In an escrow situation, bad information could lead to the wrong party getting coins.

Do you think there would be scammers on a platform they couldnt profit from? Do you think it would just get overrun with A-holes who bend over backwards to hurt others for no gain? Or do you think it would function healthily?