Protecting Sellers From Fraud

Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers.

- Satoshi Nakamoto, Bitcoin Whitepaper

Thanks to the practically irreversible nature of the Elliptic Curve Digital Signature Algorithm (ECDSA) sellers who receive payments over the Bitcoin network can simply and quickly verify the authenticity of the funds received without needing to revert to a trusted third party.

Where the payment involves the delivery of goods or services, payments can be locked using simple scripting functions that require proof of delivery prior to the release of funds, with simple conditional clauses allowing for funds to be returned to the payer in the event of non delivery. These features can be implemented using features native to the Bitcoin protocol drastically reducing the incentive or possibility to commit fraud.

Learn more about Elliptic Curve Digital Signature Algorithms here: http://wiki.bitcoinsv.io/index.php/Elliptic_Curve_Digital_Signature_Algorithm