Blip money: Building Secure P2P Settlement Without Custodial Risk

Peer-to-peer payments are increasingly common, but settlement security has not kept pace. Many systems rely on centralized escrow or subjective dispute resolution, creating risk for participants. blip money addresses this challenge by enforcing settlement through a non-custodial, on-chain protocol.
blip money operates as settlement infrastructure rather than a financial service. It does not hold funds, manage accounts, or intervene manually. Instead, it defines deterministic rules that govern how funds move once a transaction begins.
Non-Custodial Escrow Mechanism
Settlement is secured using smart contract escrow:
• Funds are deposited into protocol-controlled escrow accounts
• Escrow accounts have no private keys
• Release or refund follows predefined protocol conditions
This ensures predictable and transparent settlement.
Merchant Incentive Framework
Merchants participate under strict economic constraints:
• A bond must be staked before accepting transactions
• Transaction size is limited by bond value
• Penalties apply automatically for non-performance
This replaces trust with enforceable economic guarantees.
Transparent Reputation Tracking
Reputation is embedded into the protocol:
• Settlement outcomes update reputation automatically
• Reputation cannot be reset or manipulated
• Long-term reliability improves future access
This creates accountability without centralized oversight.
Competitive Fee Discovery
Fees are determined through open competition:
• Merchants submit bids to fulfill transactions
• Pricing reflects market efficiency
• Second-price logic encourages fair bidding
Infrastructure-Centric Design
blip money separates core settlement logic from applications:
• The protocol remains neutral and permissionless
• Frontends handle UX and compliance
• Settlement guarantees remain consistent
By combining non-custodial escrow, economic enforcement, and transparent reputation, blip money provides a dependable foundation for peer-to-peer settlement systems.