This is a quote from the book "B-Money" by Wei Dai
...s. A valid contract must include a maximumreparation in case of default for each participant party to it. It shouldalso include a party who will perform arbitration should there be adispute. All
parties to a contract including the arbitrator must broadcasttheir signatures of it before it becomes effective. Upon the broadcast ofthe contract and all signatures, every participant debits t
he account ofeach party by the amount of his maximum reparation and credits a specialaccount identified by a secure hash of the contract by the sum the maximumreparations. The contract becomes e...
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