Quote from: teamcrackitracing on October 16, 2017, 11:47:13 AM

How will Confido manage to prevent the buyer from scamming the seller? If for example, the item shows up in working condition but the buyer says it is broken? The sellers only option is to refund the buyer, who is handling the disputes?

Confido has a really clever solution to this built into the smart contract. If you receive a box of coal instead of a ledger, you as the buyer can just freeze the funds in escrow. That way the funds don't get released to the seller. This creates a huge disincentive for fraud from the seller's perspective because they won't get paid, and they waste money on shipping. Once a contract has been held up by the buyer, only the buyer can release those funds to the seller.

But what if the buyer commits fraud - can I just claim I got coal instead ledger to get my money back? No you can't - once you freeze, your funds are in escrow, and you don't actually get your money back unless the seller authorizes the refund. Thus, there is zero incentive for either side to commit fraud, short of pure spite (there is just no tangible/monetary benefit you can receive by trying to defraud each other). For the .00000001% of buyers or sellers that truly are spiteful despite zero benefit to themselves, Confido will be implementing Kleros.io, directly into the smartcontract which is an awesome dispute resolution/voting jury blockchain, as an intermediary.