I just want to be able to get a refund if the toaster that I ordered doesn't get delivered. How would crypto go about doing that without it being in the sole discretion of the seller?
How do you do that now, with a market like Amazon?
It works the same way. You can introduce voluntary trusted market intermediaries and utilize things like escrow. Big enough markets can provide liquidity such that all transactions appear realtime, but sellers can provide a deposit to the market to cover problems.
That is one method among a gazillion.
We do not need banks. All bank functions need to be mathematically automated with no trusted parties.
There is nothing preventing the use of neutral third party contracts, For example a non profit arbiter of such cases, recognized for impartiality in an open market. Just like the better business bureau, or similar organizations. Merchants can display a "your purchase protected by" banner, the market itself will determine the best form the material incentives for such an organization would take, perhaps "loser pays the fee" could work, or a subscription model, more like a traditional bank.
It works the same way. You can introduce voluntary trusted market intermediaries and utilize things like escrow. Big enough markets can provide liquidity such that all transactions appear realtime, but sellers can provide a deposit to the market to cover problems.
That is one method among a gazillion.
We do not need banks. All bank functions need to be mathematically automated with no trusted parties.