Bitcoin Escrow Script - A Script that helps to build a secure crypto ecosystem via a website, where a buyer and seller can fastly transact their bitcoins without any pitfalls. Bitdeal, a bitcoin exchange & Blockchain development company, that helps startups to initiate bitcoin escrow services like bitraded, escrowmybits, localbitcoins,setescrow,bitify and etc.
Let's have a brief look on why bitcoin escrow has came to market, what are bitcoin escrow services, how multisig wallets are used in escrow concept, how smart contracts play's a huge role in escrow concept and a lot more.
BITCOIN ESCROW: AN OVERVIEW
We know bitcoin, the modern cryptocurrency that becomes an undeniable payment method at most everywhere around the globe. It has been deemed as master of cryptocurrency, as it has paved a way for other cryptocurrencies like ethereum, monero, XRP, and others to survive in the crypto marketplace. People who resides in this crypto industry may aware of all these monumental success of bitcoin throughout the years of the journey. But, there are some important things that we need to concentrate more, especially while transacting bitcoins.
In the case of bitcoin: "The success derived a way for huge adoption, the adoptions derived chances for complexities, and the complexities resulted in anonymity.”
You can see the entire story has diverged into negativity, right?.
Complexities. Anonymities and Insecurities are often happened while transacting bitcoin. So, the success has indirectly resulted in negativity and the people started to leave from bitcoin network. By realizing the bad impact, crypto industry have taken some initiatives to rescue the system, especially to smoothen the bitcoin payments and transactions.
Bitcoin Escrow - The first rescuing concept of bitcoin industry - which has smashed out all the hurdles while transactions bitcoins to a third party.
WHAT IS BITCOIN ESCROW?
Bitcoin Escrow is a Service, that helps to build a secure cryptocurrency eco world, with increased transaction speed, trust & security by protecting both buyer and seller from scams. Escrow is already exist in other financial systems, especially in banking. The concept works as same in bitcoin industry too.
HOW DOES BITCOIN ESCROW WORKS?
Escrow mediates fund transaction between a buyer and a seller. Whereas the escrow may be a third party admin. Nowadays smart contracts have replaced the need of admins.
In tradtitional bitcoin trading/exchange/ transaction a buyer may request a seller to send bitcoins for the money which he/she has. The seller receives money from the buyer through a medium, and he provides a product, service or bitcoin to the buyer after verifying the received payment.
In some exceptional cases, the seller may abscond after receiving payment, and in some cases, the buyer may abscond without sending the payment. If this happens, outside of an exchange both sides may be left as helpless and will result in huge losses also they can’t legally pursue a case as bitcoin is decentralized.
The above scenario may happen while purchasing a product from an e-commerce store, booking tickets online or any bitcoin centric transactions.
So, how a bitcoin escrow may safeguard buyer and seller, Let’s see below,
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