Stop requesting traders private keys for Manual payout

[huey735]

Description

At present, in the rare cases Mediators need to create manual payout transactions to release the funds from the multisig, they need to request the private keys of both traders and sign the transaction for them. This is a terrible violation of one of the core Bitcoin principles.

Expected behaviour

Once a trader opens mediation the mediator gets access to the trade's contract with all the necessary information to create the transaction. They should do so and share the unsigned transaction to the traders so they can sign and broadcast it.

Actual behaviour

The mediator creates. signs the transaction for both traders and broadcasts it.

Screenshots

Additional info

I've created a guide for an alternative method using tools outside of Bisq. It'd be great if we could add the following functions to the Bisq software:

1. verify and sign message with a specific address
2. verify and sign a transaction
3. encrypt and decrypt message with a specific address

It's imperative that the sign, encrypt and decrypt functions are done inside the Bisq software due to the need of private key. Electrum and Coinbin's UI may be worth copying.

Related
Legacy Manual payout process
Update to new protocol - #3694

ping @bisq-network/mediators @wiz @Bisq-knight

[wiz]

Well yes, but the "emergency multisig payout tool" is only for emergency recovery of lost funds due to bugs in Bisq, of course nobody thinks we should be sending private keys to each other.... unfortunately until we make Bisq 100% bug-free this tool will be necessary...

That being said, if there are existing tools we can use to have users sign a transaction instead of sending their private key, we should try using those. I agree we should totally add this functionality into Bisq, including the ability to sign a message with your Tor onion key. I wrote a gist for doing this on the command line a while back but we should add it into the app GUI: https://gist.github.com/wiz/c4008ff485e9f773e81fb7b9471039e3

[Bayernatoor]

I agree with @huey735 - i've got a support case which may require multiple manual payouts and I must say that I feel uncomfortable asking the parties for their priv keys. Some Bisq users may not realize the inherent risk in doing this and therefore it could encourage a more relaxed attitude towards the sharing of private keys.

@huey735's wiki guide is a good step towards putting the responsibility in the users hands and removing any trust.

[stale]

This issue has been automatically marked as stale because it has not had recent activity. It will be closed if no further activity occurs. Thank you for your contributions.

[stale]

This issue has been automatically closed because of inactivity. Feel free to reopen it if you think it is still relevant.

[ghost]

verify and sign message with a specific address
verify and sign a transaction
encrypt and decrypt message with a specific address

I would like to work on this - @huey735 could you re-open if still wanted?

[huey735]

@jmacxx I think @ripcurlx needs to be the one to re-open it.