Smarter Bitcoin Escrow: Flexible Multisig Built for Real-World Deals

Bitcoin escrow used to mean one thing: a 2-of-3 multisig wallet.

Two parties in a deal—say, a buyer and a seller—each hold a key. The third key belongs to an escrow agent who can step in if something goes wrong. It worked well for its time, but the design had a hidden flaw: rigidity.

If two of the three keys were lost or compromised, the funds were gone forever. No recovery, no safety net. For high-value transactions—yachts, villas, aircraft—this kind of brittleness simply isn’t acceptable.

At Tetrapolar, we’ve built something better. Thanks to Miniscript, Bitcoin’s new framework for programmable conditions, our escrow wallets are flexible without sacrificing security.

Three Branches, One Wallet

Miniscript lets us define multiple “branches” of spending rules inside a single wallet. You can think of each branch as a path that can unlock the same funds, but under different circumstances and after different amounts of time.

Our standard escrow wallet has three branches, each designed for a specific scenario.

1. Operational Branch — 2-of-2: Buyer + Seller

This is the happy path.

Both the buyer and seller hold keys. Both must sign to release the funds to the seller. Tetrapolar’s key is not part of this branch, meaning we cannot be physically forced or tricked into signing.

It’s direct, simple, and fully controlled by the parties to the deal. This branch represents how almost all transactions are expected to complete: cleanly, mutually, and without our involvement.

2. Dispute and Backup Branch — 2-of-3: Buyer + Seller + Tetrapolar

After six months, this branch activates. The timing isn’t arbitrary. In most jurisdictions, if a transaction ends up in court, it takes several months before a judgment is reached.

When the timelock expires, Tetrapolar’s operational key becomes active in this branch. We can then use our signature—but only in line with a valid court decision or written instructions agreed by both parties.

This structure keeps Tetrapolar out of direct arbitration. We don’t decide who’s right or wrong; we simply make it technically possible to execute a legitimate resolution when the time comes.

It also doubles as a backup mechanism. If either the buyer or the seller lose access to their key, Tetrapolar can help recover the funds—again, only after the six-month lock period.

3. Force-Majeure Branch — 1-of-2: Tetrapolar operational + Tetrapolar backup

This branch exists for one reason only: to guarantee recovery in the most extreme case. It activates after twelve months.

If, for example, more than one of the original keys is permanently lost, Tetrapolar’s operational key and our securely stored backup can together create a recovery transaction. The funds are then sent to whichever party the original contract specifies—ensuring the bitcoin are not stranded forever.

It’s the ultimate safety valve, rarely (if ever) used, but vital for peace of mind in high-value escrow.

When Deals Stretch Beyond the Schedule

Long negotiations happen. Yachts get surveyed, properties inspected, logistics delayed. If a deal extends beyond the initial six- or twelve-month windows, there’s no problem.

Because we use relative timelocks—timers that start from the last transaction rather than a fixed date—we can simply move the funds to a new address within the same multisig wallet. This action resets the timer and keeps the first branch (the buyer-seller operational path) active for as long as needed.

In other words, your deal remains flexible and fully under control.

Our Standard Setup—Customizable by Design

This three-branch structure is our standard escrow configuration. It strikes the right balance between autonomy, safety, and finality:

• Buyer and seller have full control in the operational stage.
• A dispute or key loss can be resolved through proper channels.
• Catastrophic loss of multiple keys still isn’t the end.

But Tetrapolar isn’t a one-size-fits-all platform. Each high-value transaction is unique, and so is its risk profile. For that reason, we can adapt the design—adjusting timelocks, adding or removing branches, or changing which parties hold which keys—to fit the specific legal and logistical realities of each deal.

The Bottom Line

Bitcoin’s architecture has matured beyond simple multisig. With Miniscript, we can now build programmable safety—rules that protect all sides of a transaction without introducing new intermediaries.

Our escrow design reflects that evolution. It provides the same assurance that centuries of traditional escrow relied on—trust, fairness, and recoverability—while taking full advantage of Bitcoin’s cryptographic precision.

The result: secure, flexible, and final settlements for a new era of global trade.