While Bitcoin has been exploding worldwide, many have argued that for Bitcoin to reach the next level of mainstream adoption there needs to be a mechanism to protect Bitcoin users from scams and fraudsters. New innovative open source start-up — Bitrated is doing just that – bringing the standards of consumer protection customers have come to expect from legacy payment systems to Bitcoiners worldwide. In a world first Bitrated offers consumer protection for the safe purchasing of Bitcoin and other goods with Bitcoin, an open arbitration marketplace, buyer fraud protection mechanisms, niche experts and more.
In the past, the permanent nature of Bitcoin transactions has made it potentially unfavorable for the everyday consumer, who might previously have had no recourse in case of fraud. With Bitrated’s arbitration process, a trusted third party can reverse payments in case of fraud and help consumers resolve possible disputes with merchants. This allows Bitcoiners to transact in an environment more conducive to their safety, especially if dealing with new or unknown merchants.
It is not just consumers who are the victims of fraud: merchants in the non-Bitcoin world have a serious problem with buyer fraud, where an individual buys a product, receives it, and then issues a chargeback request. In many cases, the dispute resolution process of companies like Visa or PayPal automatically protects the consumer at the expense of the merchant. Bitrated lowers the barriers to entry, allowing new and smaller players to enter the market, and making the dispute resolution process is more innovative, fair and comprehensive. Buyer fraud is estimated to cost tens of billions of dollars per year for online merchants. Bitrated may help reduce the number of fraudulent chargebacks online merchants receive, giving them a strong incentive to use Bitcoin instead of traditional payment methods.
Bitrated’s arbitrators are not required for releasing the Bitcoin payment. Due to the use of multi-signature Bitcoin transactions, if the transaction ends well, both parties can easily release the funds without any intervention from the arbitrator. Arbitrators also never have full control over the funds. They can only move the funds with the permission of either the buyer or the seller, and cannot control them in any way without their approval.
Instead of using a traditional escrow payment holding and release system, Bitrated utilizes Bitcoin’s inbuilt multi-signature transactions feature. This means that the strict escrow regulations, licensing requirements and associated high costs are not applied: making it possible for anyone to offer arbitration services, and not just large companies as was the case until now with fiat money. Individuals with specific knowledge about a specific market, such as software development, can offer arbitration services for that specific market; having the ability to use their knowledge to resolve disputes. This is not possible today with legacy payment platforms.
Bitrated, while packed full of features, has been designed to be as easy and intuitive to use as possible. Through bringing consumer protection for everyday people to the Bitcoin ecosystem, and also enhancing merchant protection from customer fraud, Bitrated not only improves upon Bitcoin, but also solves some of the key problems which have plagued ecommerce generally for years. With its innovative open arbitration marketplace, use of multi-signature Bitcoin transactions, buyer fraud protection mechanisms, niche experts and more: Bitrated may play a key role in propelling the Bitcoin ecosystem onwards to the next great wave of adoption.
Release ID: 33326