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Bitcoin transactions can be written to support escrow use cases. *Edit: Transactions can be sent to a script which requires multiple keys to forward the funds
by mikegreenberg 4y ago
Bitcoin transactions can be written to support escrow use cases.
*Edit: Transactions can be sent to a script which requires multiple keys to forward the funds from that script address to a wallet address. https://en.bitcoin.it/wiki/Multi-signature https://en.bitcoin.it/wiki/Multi-signature
This is the primary mechanism for escrow services to function. If the need for a CC-like refund feature is important to the user, one could potentially use a service over Bitcoin which is party to a 2-of-3 multisig transaction. The payment may be settled immediately by the buyer and seller. Or either party may dispute with the service provider to settle according to some agreement.
- djbusby 4y agoHow? It's direct from wallet to wallet
- lxgr 4y agoTrue, but then we‘re no longer talking about Bitcoin. The settlement layer is rarely the most interesting part of a retail payment system.
- kube-system 4y agoTo perform escrow with that technology a trusted third party is required, at which point, you are resolving disputes exactly the same way it works with credit cards: you are convincing some organization that the transaction wasn’t satisfied.