Cryptocurrency allows me to authorize payment to another party and avoid the trusted 3rd parties of banks or credit card companies who take their cut for their service…..I get that. This is fine if I am paying for something at a store or sending payment to someone I trust…..just like cash.
But what about people I don’t trust?
Let’s say I purchase something online and send my payment in bitcoin. If they do not uphold their end of the bargain, the transaction is still final and irreversible. I cannot force a refund like I could with a credit card or other trusted third party. Essentially I am relying on a strangers good will to do what they claim they will do.
I see there are some escrow services that will release funds once both parties agree…….but then we are back to a third party taking a cut……so I might as well stick with Visa.
Am I missing something? Has anyone solved this issue? Has anyone ever made on online payment with crypto and it didn’t go smoothly?
Any input is appreciated.
Thanks!
I think future smart contracts will be designed in such a way that both parties will have to confirm receipt of product and payment before it’s executed.
I do have concerns about vendors using contracts written in Solidity though since it’s not really an efficient or secure language compared to Vyper.
I haven’t made a crypto payment because most vendors only take BTC.
I have solved this issue by using a credit card for transactions that might need to get reversed, and using my crypto card for transactions that are definitely final (like groceries.) The different systems can coexist.
You’re looking for smart contracts..
>Essentially I am relying on a strangers good will to do what they claim they will do.
Well not really, you still have a legal contract with the other party. If they default you can persue them legally.
You should also look at smart contracts as a mechanism for intermediating without actual intermediaries. For example you and the delivery driver both sign the deliery document and that releases the payment to the seller.
Most P2P Bitcoin transactions is done in escrow…
That is what smart contracts are for. Being my own bank as teach me so much things
No you aren’t missing anything. The trade-off you get for having financial freedom is that now you take on all the risk, security, and fees related to processing a transaction. This is one of the major hurdles crypto has and one of the reasons I don’t see it actually replacing fiat. These 2 things can co-exist, but most people prefer security and ease-of-use over freedom.
>Let’s say I purchase something online and send my payment in bitcoin. If they do not uphold their end of the bargain, the transaction is still final and irreversible.
Smart contracts. You wont be able to get scammed if the deed to a car or whatever is in there. This will be the future. That’s how nfts work right now. You won’t be doing much peer to peer unless you are there in person and you trust the other party imo.