Question on 'finality'

BEGINNERS & HELP
#1

I’m doing the introductory blockchain/bitcoin 101 course. Ivan talks about how there is “finality” in blockchain once a transaction is confirmed, and this prevents scamming, for example when someone buys a product, then calls the bank to do a chargeback and lies they never received the product. Or they received the wrong product. Then the person gets their money back and also keeps the product without paying (fraud).

So it makes sense how blockchain prevents the buyer-side fraud from occurring. However, he doesn’t explain the other side - how can seller-side fraud be prevented on blockchain? Once the seller receives the money, since there are no chargebacks, can’t they just run away with the money and scam the buyer?

#2

This is just theory, different laws and governments can apply different methods:

In case the seller is legally registered (you are buying something from a true company, like a TV for example) if they accept payments with crypto, they must declare the operation and explain what it is (selling you a TV, invoice it basically).

In case of the buyer, you have a Transaction ID on the blockchain, thats proof enough that you sent money to the seller (the seller should be legally forced to declare for example which addresses they will use for the business), so that give the buyer a way to avoid fraud.

Is better that the buyer always buy something from a trusted seller, which mechanism they provide you in case it goes sideways? Are they willing to sent you back the money? or they will trade you the item for something else of the same value ?

In terms of finality, the transaction ID is proof enough that a trade from a wallet to other has been made properly, everyone can validate it globally, so the “fraud” does not come from the blockchain.

If you have any more questions, please let us know so we can help you! :slight_smile:

Carlos Z.