Bitcoin strongly enforces two concepts - high anonymity and no chargebacks.
Because of high anonymity, it is nearly impossible to be 100% certain who you are sending Bitcoins to. In the end, the Bitcoin address is just an arbitrary string of characters.
Because of no chargebacks, once you send someone Bitcoins, they are irreversibly theirs (assuming no ...
It's because bitcoin transactions are final, and exchange margins are low.
Businesses selling something for download can afford to be hit by fraud without incurring any real loss (other than potentially an opportunity cost, but even that is likely to be minimal as fraudsters would be unlikely to pay even if they couldn't defraud). ie margins are high.
No, a bitcoin transaction which has already been included in a block on the longest chain cannot be reversed. This is by design as Bitcoin is intended to behave much like cash, with recipients being assured that the money is now permanently in their possession after a transaction has been included in a block.
Bitcoin transactions cannot be reversed. However, there are escrow services that make sure that transactions are safe for both parties. For example, if you want to buy an item from someone, using an escrow service, you would first send the Bitcoins to the escrow service. The seller then knows their money is secured and sends you the item. Once you've ...
Bitcoins are liquid. Everybody wants bitcoins, and as many as they can get - if not for some immediate use, then to sell them for other currencies which are of immediate use. Even someone who doesn't need or believe in Bitcoin can still steal them. Thus a Bitcoin CC trader will attract all the fraudsters in the world. A site like RPGNow will attract only ...
That is not possible. By the decentralized design of Bitcoin, nobody has the ability to "cancel" the coins in an address held by someone else.
I'm sorry you were hacked, but it is almost certainly impossible to recover, block, or trace the funds at this point.
It's a short list.
Liberty Reserve (though they did freeze some customer funds recently until they became verified)
Bank Wire (though see comment below)
Here's the payment methods hardness list:
Bitcoin transactions are not reversible. This is by design.
Whether it is a feature or a flaw depends on your point of view.
Many merchants consider it a feature as it eliminates counterparty risk.
However, some people, notably Wikileaks, have called for a cryptocurrency with time limited reversibility.
There aren't many established bitcoin escrow services yet. I suggest a new one that came up last month named mybitsafe. You can find a lot of information about the owner in the FAQ. He also made a post at the bitcointalk forums.
Please note that, right now, this service does not allow a buyer to get his money back. Once the money is in the escrow, the buyer ...
If the receiving party is not co-operating you cannot enforce them to return the payment.
In this case it is recommended to take the case to your local police and make a crime report of fraud. Most civilized countries have courts which can enforce the fraudster to repay the stolen property.
However getting anything back is unlikely if you were scammed in ...
QuantumQrack: the answer is no, it's supporting the "payment protocol", which is a way of attaching some extra data to a transaction, such as a refund address. however, the refund is still up to the merchant to agree to give you; once you've given money to the merchant, you can't take it back without them giving it back to you.
Asked in #bitcoin on freenode....
If I were to use bitcoins instead, I have no way to getting my money back, if the merchant turned out to be a fraud. As a result, I will have less trust on buying items off the internet, as a result, eCommerce wont work as a result bitcoins wont work.
If you use a credit card, the merchant has no way to get their money if you turn out to be a fraud. But ...
Bitcoin is a currency, one which has a payment method build in. Euro is a currency, too. It has a payment method build in, too: If you give someone a Euro banknote, you're using it. But that's it in regards to built-in payment methods. The one payment method fiat currencies have built in are completely useless, online.
However, as you have noted, there are ...
It is not possible to reverse a transaction that has already been transmitted on the bitcoin network. However if you can keep a transaction from being transmitted then you can close the client restore the wallet file from a backup. When the client is restored with the -rescan flag the transaction will no longer be pending.
The only way to "reverse" the transaction is to immediately double-spend from the same set of UXTOs to a different address that you control (within a few seconds after your original transmission) and pray that the doublespend reaches enough nodes and wins.
But if your tx is already confirmed in a block, then no way.
StrongCoin has been operating since 2011 in the wallet space and now has an escrow service too.
The service is based on BIP38 which means it is using an M of N style key exchange. The service does not hold the Bitcoins just one vote which it can use in the case of a dispute.
StrongCoin - BIP38 Escrow Service
Partially, simply use a 2-3 Multi where one party holds two keys.
Say for example an exchange wanted to sell bitcoins by credit card. They would send the use a M-Of-N escrow containing their public key but also the two of their own public keys. If the buyer then reversed the credit card transaction the exchange can then reclaim their coins.
However the ...
The discussion on Bitcoin Talk pretty much convinced me that "elective Chargebacks" (where some tx be reverrsed, but not all) is essentially meaningless.
If a shop would choose to give a customer the ability to do chargebacks for a limited time, this is equivalent to just postponing the payment. Since this is the main use case, and the other use case of ...
Does the system record and link the record of my bitcoin spend to the product I'm buying? If so, how?
No. But entities (like governments, secret services, companies, or individuals) my attempt to do so.
Does bitcoin/blockchain at least record the total transaction such that I have at least a contractual right to the product I've purchased?
Bitcoin is designed to put you in control of your own money. While this allows you to "be your own bank", it unfortunately also leaves you without the safety net present in payment services provided by the banking network. Bitcoin payments are pushed out by the paying party instead of requested by the payment receiver.
By design, there is no central referee ...
You could use 2-of-3 outputs to do this, where the third key is held by a trusted mediator.
A merchant could consider himself paid when the 2-of-3 transaction is confirmed. In the normal course of events the 'chargeback period' would expire and the mediator and merchant would send the money to the merchant's normal address.
If the customer requests a ...
LocalBitcoins has been operating since 2012 and has a good track record.
Reputation system and user security info keeps unauthorized transactions in check
Escrow is done on LocalBitcoins web wallet, so releasing escrow is instant, off-block chain (no need to wait for blockchain confirmation)
Two-factor authentication can be set up to protect your account
To be honest all has been already said about this topic and all the competent previous posters are right in that Bitcoin is by design not reversible.
But to have all the facts at hand, one needs to mention also the event of March 2013 where Bitcoin underwent a 24 block reorganisation. Before people start screaming this was a network issue/program issue and ...