Can contracts programmed in bitcoins be used to scam merchants?

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Simple answer, no. What you're most likely talking about are interesting ways to use script to pay to a m-of-n multisig, for example. Generally, when you get paid in bitcoin, you, as the merchant, get to choose where the customer sends the bitcoin. This can be 2-of-3 multisig, which would mean 2 of the 3 people you choose have to agree in order to move the bitcoins or something much more complicated. But the address that the user sends the money to is entirely up to you, the merchant.

A more complex answer is maybe. It is possible if you're using some complicated escrow system that a customer may be able to hold the bitcoins hostage, but that's not something you have to worry about unless you specifically choose that sort of payment system. The vast majority of merchants that take bitcoin don't do business this way, they simply take payment into a standard bitcoin...

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BitPay Atlanta GA, payment processor and merchant service API
CoinGate, Vilnius, Lithuania, Accept Bitcoin payments and receive payouts in Euros, U.S. Dollars or bitcoins. E-commerce plugins, API, Point of Sale app for Android / iOS / web, payment buttons.
BitcoinPay London, payment gateway operating with PLN, EUR, CZK, and USD
Blockchain, a very simple, bitcoin only, merchant app that gets you started in a few seconds.
Coinbase San Francisco CA, wallet, cryptocurrency payment processor and API
Paxful Wilmington DE, Point of Sale, peer to peer market
Spectrocoin London, all-in-one merchant services solution that processes in Europe.
CoinPip Singapore, CoinPip enables businesses to send and receive digital payments
BitPagos Wilmington DE, cryptocurrency payment gateway credit card solutions.
CoinsBank United Kingdom, payment processor, exchange and card issuer.
Bitaps Russia, payment processor.
GoUrl Dominica, Official...

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Bitpay offers one of, if not the most comprehensive solution for merchants wishing to integrate a Bitcoin payment processor into their existing operations.

The company offers a wide range of 'plug-ins' for existing shopping cart software including Magenta, OpenCart, Zen Cart, X-Cart, Wordpress (Woocommerce, E-Commerce etc), Drupal Ubercart, and others. So if you have already got a store running with any of these then integrating Bitcoin payments is super-simple. If you are just starting out, then a partnership with Shopify allows you to create a new store that accepts BTC payments.

All merchants get access to a point of sale app so that you can take payments in a physical store using a phone or app, and anyone wanting a more comprehensive solution can take advantage of BitPay's integrations with Soft Touch POS systems.

Merchants using BitPay can choose to instantly convert all or part of their sales revenue into a range of fiat currencies including US Dollars,...

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It has been suggested that this article is merged with Merchant Howto.

This guide is intended for small business owners who wish to help promote Bitcoin by accepting it as payment for goods and services. It's written with the assumption that you operate a regular business that sells goods or services for regular national currency such as dollars, and that you wish to accept Bitcoin as another legal way to pay, and that you intend to pay taxes on your Bitcoin income just like any other income.

With Bitcoin being touted as a way to conduct anonymous transactions and as way to compete with government currency, many small business owners wonder what's the right way to accept and account Bitcoin, or if it's legal or ethical, or whether and how they should pay taxes on income received through Bitcoin.

Bitcoin has been formally recognized by some governments and authorities as a "currency", but in practice, Bitcoin is no different than accepting payment in other forms...

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Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks. With Bitcoin, you can be your own bank.

If you are new to Bitcoin, check out We Use Coins and Bitcoin.org. You can also explore the Bitcoin Wiki:

How to buy bitcoins worldwide
Buying Reddit Gold with bitcoin

Will I earn money by mining bitcoin?

Security guide for beginners - (WIP)

Community guidelines

Do not use URL shortening services: always submit the real link. Begging/asking for bitcoins is absolutely not allowed, no matter how badly you need the bitcoins. Only requests for donations to large, recognized charities are allowed, and only if there is good reason to believe that the person...
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Purchasing goods online can be challenging, as we often have to rely on other people’s ratings on a major e-commerce website such as Amazon or eBay and, as we all know, these can easily be tampered with. So much so, that Amazon marks a few revisions by verifying users actually purchased the goods they’re reviewing.

On the other hand, sellers also have to spend time and resources building up reputations on these centralized platforms. Moreover, once you built up your reputation on one platform, you cannot easily transfer this reputation to another. Services like TrustPilot can be useful, as long as they take the time to incentivize users to rate their services. However, these ratings are somewhat easy to manipulate and make the company look good to other users, even if the service is terrible.

Enter Monetha, a decentralized mobile payment processing platform with a built-in trust and reputation system that essentially mixes PayPal’s payment services with TrustPilot’s...

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Find answers to recurring questions and myths about Bitcoin.

Table of contents

General

What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010...

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NEW YORK (InsideBitcoins) — Bitrated publicly released the latest version of its reputation and arbitration platform on Wednesday, and the service could be useful for consumers who wish to purchase goods or services online from untrusted sellers via bitcoin. Cryptocurrencies do not allow payments to be reversed because there is no third party between the sender and receiver of a payment. The Bitrated platform allows anyone to position themselves as the third party participant through the use of multisignature addresses.

Chargebacks come to bitcoin

Photo: Bitrated on Vimeo

If you’ve ever purchased a laptop, book, clothes, or anything else online, then you know that sometimes the purchased good is not everything it was made out to be by the seller. In some situations, you may have never received anything at all after making your purchase online. For this reason, it’s important to have arbiters, such as PayPal or Visa, between the buyer and an untrusted...

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After falling for the latest bitcoin scam out there I am compelled to write about the number of bitcoin scams going on out there and the scammers behind them. My Story began in a Thursday after noon (Wednesday August 13, 2014) when I was contacted by a person pretending to be a representative of cryptocoinsnews.com selling sponsored posts on the site with bitcoins. The individual asked for .40 worth of bitcoins for the sponsored post but I was able to convince him to accept .02 bitcoins. See a copy of the first bitcoin scam email I received below.

CLICK TO READ

Here’s first problem I failed to spot. Take a look at the email address the bitcoin scam was sent from. It reads “[email protected] David Parker is the a real co-owner of the website CryptoCoinsNews.com and is listed on the site as so. David Parker is legit. However, what is not legit is this David Parker from this email address. Someone duplicated CryptoCoinsNews.com to CryptoCoinzNews.com. Can you spot the...

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Criminal activity has become a pandemic in the Bitcoin world. Ever since Bitcoin's explosive price rise criminals have been targeting Bitcoin users. Dozens of new Bitcoin related scams are reported each day, and often the criminals are never caught since it's possible to stay anonymous on the internet with the right expertise. There are a multitude of different Bitcoin scams, and it is important to understand them to keep your money safe. This article will discuss how to identify and avoid Bitcoin scams.


Numerous Bitcoin scams occur when buying and selling Bitcoin. Despite the existence of several major Bitcoin exchanges, a lot of Bitcoin trading activity is peer to peer. The reason for this is it often takes a few days to buy Bitcoin through an exchange, so if someone needs Bitcoin instantly they need to buy it from someone that already has Bitcoin. Also, several Bitcoin exchanges have collapsed in the past, causing major losses for people who were buying or selling...

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One question that a substantial portion of people asked when Ethereum was launched was “Why to develop Ethereum when we already had Bitcoin for the transfer of payments?”

Well, Blockchain is a powerful technology and it is true that we haven’t fully utilized it to its potential. Bitcoin only makes use of one of the many possible applications of the Blockchain technology i.e. peer-to-peer transfer of funds.

Ethereum is a platform based on the Blockchain technology used for developing decentralized applications. It has a few benefits over Bitcoin such as the feature of coding Smart Contracts and the Ethereum Virtual Machine.

What is a Smart Contract?

Simply put, Smart Contracts are a digitized version of a traditional contract. They are computer programs which run on the Blockchain database and can be programmed to self-execute when the conditions written in their source code are met. Smart Contracts are trusted by the users as once programmed, the terms...

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