https://www.bitrated.com/u/DyslexicZombeiThere are two problems related to Bitcoin commerce for larger transactions:
1) Using traditional methods there are *no chargeback or dispute* systems in place for normal Bitcoin transactions.
2) While escrow is recommended: Traditional BTC "Escrow" services are not true licensed and bonded Escrow services with
business insurance.
An interesting thing about Bitcoin Escrow (and an open secret not usually talked about like the Emperor's New Clothes)...is that there appears to be *no true* licensed and bonded Escrow services for Bitcoin and other cryptocurrency transactions. Since John K. has been incognito - the same person who vetted me - I've decided to approach this market vacuum in the same way that I approached the Group Buys forum: with openness and by sharing the work.
Solution: One method of dealing with the high costs of setting up Escrow Service licensing and bonding...is just to not use it at all, but instead utilize built-in features of the BTC protocol to let you insert a neutral, trusted 3rd party who can serve the similar purposes to escrow...but without the high barriers to entry required by true Escrow licensing and bonding.
It's one of the underutilized beauties of the BTC protocol itself that will likely need to take off if Bitcoin is going to ever be taken seriously by mainstream, neutral users. Using this method, one can make use of an arbitrator to release funds back to a buyer, if fraud has occurred.
Advantages of this method include:
- The ability to reverse a transaction (which you'd want for an expensive transaction) upon valid proof being presented
- The Arbitrator is not required to release funds in the course of a normal transaction
- The Arbitrator *never* has control of the funds, and cannot steal them from the two other transaction participants.
- The private keys involved are never seen on the server side as far as implementation of this API
You can read more about it here:
https://www.bitrated.com/==
Since August, I've provided the world's first Group Buy Escrow Coordination Services for the Group Buys Forum, where I've
helped facilitate seven figures worth of BTC deals, including about 100TH/s of PAID ASIC miners (for comparison's sake
the Elgius Pool is about 110TH/s total) and have coordinated the escrowed buyouts of miners such as this:
http://i286.photobucket.com/albums/ll87/SurfSkateKauai/HashFastDZGroupBuyBuyoutofHashFastOrder616at-cost.pnghttp://i286.photobucket.com/albums/ll87/SurfSkateKauai/a8295a7b-3c53-4bb6-98ab-f74a3276e00e.jpgWithout any major complaints about fund handling: We've handled well over 1000 BTC in the course of being a community focal point for gathering funds for Bitcoin ASIC miners. Here are some examples of wallets that my co-leader thomas_s and I have used in the course of gathering and sending these funds to manufacturers.
262 BTC -
https://blockchain.info/address/1C5R7t1XdVPxUBFUnBWJnRPx7ZMZBgnv7L600+BTC -
https://blockchain.info/address/14YUzGrVPBdCAf6VpJuLVDVciVyzfZJiSuWe can send a signed message from any of these wallets, if necessary. With a model of openness, transparency, representative democracy, and listening to our co-op members, we've built what appears to be the world's largest and most diverse bitcoin miners cooperative.
In addition: Here's our endorsements and trust ratings:
https://bitcointalk.org/index.php?topic=280412.msg2997877#msg2997877https://bitcointalk.org/index.php?action=trust;u=140437https://bitcointalk.org/index.php?action=trust;u=138415
