Here's something I would like to hear some comments on. I initially posted this in the Digibyte forum since they were discussing the issue but, I would like to see what everyone here thinks:
"I'm hearing a lot of noise about Bitcoin's "flaw" regarding non reversible transactions. This is both a good and bad feature in the protocol depending on what the transaction is for. Perhaps, a solution would be to change the code so the transaction IS reversible for some period of time or, until the receiving party physically accepts it. Thoughts?"
Seems this is one of the holdups for mass adoption although most of that noise is coming from the established money/credit providers. Do you agree?
This is my take and I will try to make it brief. The irreversible feature of Bitcoin is an important security component and a great selling point to merchants. Legitimate merchants stand by their products and services they sell. Buyers have full recourse to a refund of their payments, if they so demand, within some reasonable scope of limitations, either directly or through the court of laws. I do not see this as an added risk exposure to the consumers, but a significant protection for merchants.
Reversible payments will drastically increase merchants’ risk exposure and a huge deterrent to mass merchant adoption. Anonymity, with the exception of certain merchants, is also a deterrent to mass adoption.
Unfortunately, I am having a very busy day and do not have the time to elaborate this further. I will conclude that in the absence of the irreversible feature and a required true anonymity for DNotes my optimism for the success of DNotes would be severely degraded. That is how strongly I feel about these two functions of Bitcoin as a digital currency technology.
I was trying to find an article I had read awhile ago about chargebacks, but haven't found it yet. It gave the details on things like most reversed transactions are from online purchases, a lot of them are consumer fraud (receiving the merchandise, but saying you didn't), etc. I'm of the opinion that this ("bitcoin's flaw") is just the credit card companies using this fact as their trump card. Things will evolve and work themselves out and their argument will become mute. Some of this can be dealt with on the shipping side ie. shipping insurance to guarantee receipt and in good condition where the customer must acknowledge upon receipt.
Best sellers ratings for reputable online businesses. Apps that will recognize the addresses of the businesses on your safe list and issue you a warning if necessary, etc. Who knows, this could weed out bad businesses and bad customers.I did find this article on how much chargebacks cost merchants:
"The Unknown Costs of a Chargeback" -
http://www.chargeback.com/blog/the-unknown-costs-of-a-chargebackSomeone was listening to me
. LOL
"Bonafide Raises $850k to Build Reputation System for Bitcoin"
A startup called Bonafide has raised $850,000 to build a reputation system for the bitcoin industry.
The funding round, which comes from Quest Venture Partners, Crypto Currency Partners and the AngelList Bitcoin Syndicate, among others, is a step towards creating a scoring system for addresses on bitcoin’s network.
Notably, Bonfide.io was included in Silicon Valley’s 500 Startups incubation program last year.
Brian Moyer, the firm's co-founder, said that 500 Startups venture partner Sean Percival saw early on the potential for Bonafide to create more credibility in bitcoin commerce, whether between consumers and merchants, or in person-to-person payments.
Moyer said:
“What we’ve found is that people need to identify with something, whether it’s a person or an entity in the bitcoin ecosystem. People need to be able to see what’s out there.”
Managing reputation
Following a spate of collapsed companies and notable frauds in the space, reputation in bitcoin is now seen as increasingly important in helping the technology to go more mainstream and overcome fears over the digital currency's pseudonymous nature.
While bitcoin addresses can in some cases be tracked and identified with certain persons or firms, generally it is hard to find out who owns a particular address.
So, for merchants and consumers in the bitcoin space, not having solid information about the person or entity they are dealing with can be a problem – an issue Bonafide aims to solve.
Moyer said:
“Bitcoin is desperately in need of having that place for people to be able to demonstrate their validity in the space."
Bonafide does not have a login on its website. Instead, it culls information from social networks and the bitcoin network in order to provide entities, which could be people or organizations, a reputation score.
http://www.coindesk.com/bonafide-raises-850k-build-reputation-system-bitcoin/LOL. How many DNotes did have to pay those guys to listen to you? I bet a lot to be thinking like us, as we have been since day one. They got the right idea but it will take a lot more than 850K for a partial reputation rebuild.
If you started off with a cold cup of tea, it best to empty it first. Otherwise, it will take a lot more hot tea just to warm it up for you.
In brief, it will take a lot more than that. There is no single solution for an industry as complex as ours. It will take a total package of many little tasks and a great deal of dedications and commitments that are consistently positive and productive, sustainable over a long period of time, under the right leadership.