The introduction of digital assets particularly Bitcoin has offered to the global world several benefits in that financial transactions have been simplified, more attractive and also very profitable. Notwithstanding all these, the world of digital financial assets is still confronted with some challenges chief of which is insecurity. Insecurity has been a major challenge resulting in several cases of scammers, hackers, and crackers making away with a huge investment of people. To checkmate insecurity in the digital world, many steps have been taken, and others are still being implemented to date. Escrow in Bitcoin is being implemented to ensure the safety of transactions between two parties who are unknown to themselves and cannot vouch for the integrity or trustworthiness of the other. So escrow services in Bitcoin help to provide a neutral third party who plays an intermediary role between buyers and sellers in the cryptocurrency marketplace. This neutral third party oversees the whole Bitcoin transaction process by helping parties draft commitments and ensure both individuals comply with the commitments drafted up until the completion of the transaction.
Some Challenges of Bitcoin Escrow Services
- Escrow Services Are Usually Expensive. This is probably the most challenging thing about Bitcoin escrow services. It is usually very expensive. While this seems exploitative, it is largely justifiable. An individual who provides escrow services to actors in Bitcoin transactions puts his integrity and reputation on the line. What this means, is that if any irregularity comes up in the process transacting that nullifies the transaction, such guarantor would be held liable. all sum to be the reason attached to the high cost of Bitcoin escrow services
- Escrow Services Makes The Transaction Complex. Making use of escrow services results in a complex transaction that is time taking and many times frustrating. First, it requires a whole lot of understanding about the technicalities as regards the working of Bitcoin. It also requires that parties have to wait on the decision of the guarantor at virtually every one point of the transaction because the escrow manager oversees the transaction.
Regardless of the challenges encountered making use of Bitcoin escrow services, the overall purpose of the innovation remains key. This purpose is to ensure that the individual financial assets of traders in the cryptocurrency marketplace are protected and that individuals who are new into the ecosystem and do not have the requisite knowledge to trade can be able to employ the services of escrow managers in trading smoothly.
We found one company that’s trying to address those problems and build a system from the ground up with respect both to buyers and sellers, and easing as much as possible the use of an Escrow system.
Let’s talk about the problem, but this time will add solutions…
Expensive? not, in this case, Escrow100 charge only 2%, now if you think it’s expensive, remember Fiverr – the leader in the freelancer marketplace industry take 20%!, how about Paypal? well fee for each transaction in Paypal is $0.30 USD, plus 2.9% of the amount you receive.
So now 2% sound like a bargain… and keep in mind, there are heavy risks in this industry, escrow companies have many expenses, insurance, security, and much more especially in the Bitcoin arena.
How about complex, not easy to use?
in this case, Escrow100 did a great job, you have a simple interface to send and receive money to and from the system using their deposit and withdraw interfaces, anyone who used bitcoin in the past can easily send and receive bitcoin from this interface.
How about the escrow service itself?, the place where you trade with the buyer or the seller, well this was made easy using a simple interface, which allows your to orientate in the current step, and shows you, what is the next step towards finishing the transaction in success, which is the goal of the buyer and the seller, for example:
This is taken from the seller page, here you can see the seller see that the buyer already deposit the funds for this escrow transaction, and all seller need is to accept and press the button (if he want to), using this interface make both buyer and seller understand the status of the transaction and prevent future misunderstanding or future disputes.
The buyer and seller communicate using messages during the escrow process and try to solve any problem, between themselves, without the need of the arbitrator, or even cancel the escrow without any fee.
we talked with escrow team support manager, Dan Reynolds, he said that 99% of the transactions in the websites are finished without any problem, the one percent that has a problem eventually are easily solved.
We hope that users will buy and sell more in bitcoin using system like that, the bitcoin is not some item you purchase and wait that it will be worth more, like gold, bitcoin is also money, and as such it needs to transfer hands, escrow services like Escrow100, can help to create the correct trusted environment to strive for this goal.