Part 6/18:
He elaborates on how Bitcoin transactions can encode conditions, such as multi-signature requirements, time delays (lock times), and third-party signatures, creating sophisticated escrow mechanisms—programmatic equivalents of legal contracts. For instance, a buyer and seller could set up an escrow where funds are only released upon delivery confirmation, verified by an impartial third party like DHL. If something goes wrong, a dispute can trigger a refund transaction—without trusting any centralized intermediary—by simply executing a pre-constructed script that reverses the transaction, all on the blockchain’s programmable ledger.