3 ms·

This is false. The micropayments system they are using is based on fancy Bitcoin transactions and does not require anyone to be trusted: https://21.co/learn/i

• Animats 11y ago
  When they actually do it that way, the "channel" relationship is between buyer and seller, without going through "21.co". That's fine. But that only works if you do enough transactions with one buyer to justify a blockchain transaction. You have to tie up some predetermined amount of BTC for a day or so, and you get back change for what isn't used. That's a pain. The more common case is what they call "Off-Chain Transactions (BitTransfers)". "21.co" acts as a clearing agent for microtransactions, and so you have funds tied up against "21.co", not with the seller. This involve some degree of trust in "21.co", in that they can potentially steal your balance. (In keeping with Bitcoin scam tradition, they'd probably claim they were "hacked".) Their terms of service demand confidential arbitration (!), so you're gagged if they screw you.[1] [1] https://21.co/terms-of-use/#dispute-resolution https://21.co/terms-of-use/#dispute-resolution