PSBTs

## Partially Signed Bitcoin Transactions (PSBTs)

### What are PSBTs?

PSBT stands for Partially Signed Bitcoin Transactions. They are a type of transaction format that allows multiple parties to collaboratively sign a Bitcoin transaction without revealing the private keys used to sign the transaction.

In other words, PSBTs are a way for several parties to sign a Bitcoin transaction without any one party having complete control over the transaction. This can be useful in situations where multiple parties need to approve a transaction, or when a single party wants to break up the signing process for security reasons.In other words, PSBTs are a way for several parties to sign a Bitcoin transaction without any one party having complete control over the transaction. This can be useful in situations where multiple parties need to approve a transaction, or when a single party wants to break up the signing process for security reasons.

### How do PSBTs work?

PSBTs work by breaking up a Bitcoin transaction into multiple parts. Each part is signed by a different party using their private key. Once all the parts have been signed, the transaction is complete and can be broadcast to the Bitcoin network.

The process of creating a PSBT involves several steps:

1. Create an unsigned transaction: The first step is to create an unsigned Bitcoin transaction. This includes specifying the inputs and outputs of the transaction, as well as the transaction fee.
2. Convert to PSBT format: The unsigned transaction is then converted into a PSBT format. This format includes all the information needed to sign the transaction, but without any signatures.
3. Share the PSBT: The PSBT is then shared with the parties that need to sign the transaction. This can be done via email, file sharing, or any other method of communication.
4. Sign the PSBT: Each party signs their part of the PSBT using their private key. The signed parts are then combined into a complete PSBT.
5. Broadcast the transaction: Once all parties have signed the PSBT, it can be broadcast to the Bitcoin network and included in the blockchain.

### How can PSBTs be applied to buying and selling Ordinals?

PSBTs can be used to securely buy and sell Ordinals. Here's how it works:

1. Create a PSBT: The buyer creates a PSBT that includes the Bitcoin payment for the Ordinal.
2. Share the PSBT: The buyer shares the PSBT with the seller. The PSBT includes the details of the Ordinal being purchased as well as the Bitcoin payment.
3. Sign the PSBT: The seller signs the PSBT using their private key. This confirms that they are the rightful owner of the Ordinal being sold.
4. Broadcast the transaction: Once the PSBT has been signed by both parties, it can be broadcast to the Bitcoin network and included in the blockchain. The Ordinal is then transferred from the seller to the buyer, and the Bitcoin payment is transferred from the buyer to the seller.

By using PSBTs to buy and sell Ordinals, both parties can be sure that the transaction is secure and that neither party has complete control over the transaction. This can help prevent fraud and ensure that both parties are satisfied with the transaction.

In conclusion, PSBTs are a powerful tool for securely signing Bitcoin transactions. They can be used in a variety of situations where multiple parties need to collaborate on a transaction. By using PSBTs to buy and sell Ordinals, buyers and sellers can be sure that the transaction is secure and that their assets are protected.

Copy Pasted from https://madwiki.madmandrills.com/others/psbt

## Using PSBTs to list on multiple marketplaces at once.

PSBTs allow Ordinals to achieve a decentralized method to list an ordinal for sale across multiple marketplaces in a way that is both secure and lives up to the trustless model of defi, unlike other more centralized marketplaces. Current marketplaces using this technology include Open Ordex, who use NOSTR to push their PSBT listings to other marketplaces such as Ordinals Wallet. Thanks to PSBTs and NOSTR, listing an ordinal for sale on Open Ordex causes your listing to be propagated to the other PSBT based marketplaces.

## How to Cancel a PSBT once it has been created and signed?

A PSBT can be invalidated by moving the ordinal out of the wallet that was used to create the PSBT. Once the Ordinal is not in the wallet utxo that was used to make the PSBT, it is impossible for anyone to then sign the PSBT and purchase your Ordinal.