The post Circle Launches Refund Protocol for Onchain Dispute Resolution and $USDC Refunds appeared on BitcoinEthereumNews.com.

Circle, the issuer of the widely used $USDC stablecoin, has just rolled out a new feature designed to heighten the security and flexibility of on-chain transactions. The Refund Protocol allows for non-custodial refunds and a mostly on-chain dispute resolution process for payments made in $USDC. The Refund Protocol might represent the next step in the evolution of how digital currencies are exchanged. Enhancing on-chain transaction security, in any and every way possible, seems key to reaching the “trustless” ideal proposed by early proponents of Bitcoin. Yet central to any “trustless” exchange is a vision of a world in which on-chain, and by extension off-chain, transactions can be carried out without relying on any centralized intermediary. A range of key features characterizes the Refund Protocol. For one, it offers transparent, programmable escrow. If a buyer and seller can’t agree on a refund, then the Refund Protocol lets them engage the services of a non-custodial arbiter. Both of these features, I would argue, make it possible to handle refunds in a way that respects the trust-minimized nature of blockchain systems. This is important not only for the protocol’s users but also for the appearance and reality of stablecoins, which are (or ought to be) secure and transparent. Enhancing Trust with Programmable Escrow and Dispute Mediation The Refund Protocol’s standout feature is programmable escrow. In conventional payment systems, when buyers and sellers have to resolve disputes or request a refund, they rely on banks or third-party processors. The Refund Protocol, however, replaces these intermediaries with blockchain-based solutions that are promising in their transparency and security. Thanks to smart contracts, the Refund Protocol can hold funds in escrow until any disputes tied to the transaction are resolved. The system of smart contracts is clear and verifiable, and it lets one see at any time…

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Filed under: News - @ April 20, 2025 5:24 am