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February 19, 2020, 04:34:35 PM *
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 on: Today at 03:29:01 PM 
Started by ybabel - Post by ybabel
bitcoin remove third party in transactions. Great. But does this solve the trust problem ?

Let me explain. Since I started using bitcoin a few years ago, I have the same question raising again.

Imagine I want to buy something expansive (a painting for example) and physical (not a de-materialized good) to a distant seller and pay with bitcoin. Imagine we live in an anarchy, there is no third party at all (no law). How can we make this work ?

If I pay and the transaction is written on the blockchain : the seller already have my money. Put aside is reputation, if he don't send me the package, my money is lost. Unless I have checked the real physical address of the sender before (but if he lives in a distant place this is difficult). So there is it, with any third party law enforcement, my money is lost.
If we reverse the situation and that the seller send the package and I don't want to pay ... all the seller have is a postal address. Even more difficult to get is merchandise back.

For a virtual good (a book, a video, etc...) we can have smart contracts that enforce a fair transaction. But for real physical tangible goods ?

So here I only see one solution : a third party that will handle conflicts.
Traditionally it is the bank.
We usually say that bitcoin remove the third party. Is it really ?

Is there any system that can do that ?
Sure, we can add a decentralized reputation system that will minimize conflicts, but it cannot avoid them fully.
The other solution is to build trust, step by step. First I buy a little thing, then a bigger, then a bigger, till I reach the real size of my expensive good I want to buy.
Should we add a kind of justice/police to the bitcoin to make it really work in real world ?
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 on: Today at 03:21:02 PM 
Started by johnyj - Post by hotmom
Buying land far away in the galaxy will insure you against collapse on Earth.
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