“Bitrated’s solution to consumer protection is in some ways an old one: escrow. Rather than a customer sending a payment to a merchant directly, the customer sends the payment into escrow, and the funds are released from escrow only when the customer confirms that they received the product or service. However, Bitrated makes one major addition to the model: multisignature transactions. Rather than the customer sending money directly to a trusted escrow agent, the customer sends the money to what is called a ‘2-of-3 multisignature address’ constructed using the customer, merchant and escrow agent’s public keys.”

http://bitcoinmagazine.com/8834/bitrated-you-can-no-longer-say-bitcoin-has-no-consumer-protection/

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