Crypto-currency is a form of decentralized digital currency that has changed the world of finance
over the past several years. BitBay lacks a central authority and protects anonymity, while allowing a relatively
low-cost alternative to fiat. It opens the doors for international exchange of commodities and has the potential
to change how business is conducted. The signature and scripting system that BitBay uses allows for the
creation of smart contracts. Also using signatures, it is possible to create accounts that require multiple signatures
(multisig accounts) as well as transactions with multiple inputs and outputs.
There has been discussion of some of the current weaknesses with smart contracts. We address these weaknesses
to make smart contracts immediately accessible on the BitBay network. As proposed, this protocol
offers a system of commitment schemes and business protocols that greatly reduces the issues of extortion
and malleability from two-party escrow.