Escrow and it's working procedure

Assalamualaikum steemians

How are you?Hope so everyone would be safe and sound just like me as I am also safe Alhamdulillah.....

Escrow in crypto Is my today topic that I'm going to discuss with all of you as well as not only this with its basics I will also be letting you know about its working procedure behind.

Escrow in cryptocurrency is defined as a mechanism that helps in making the transactions more secure in between the parties involved in any kind of trade or transaction.Escrow is something in Crypto Which is the responsible for folding of friends in a more secure manner until a particular level of conditions meet. So in simple words we can say that this is a way of providing one more layer of security for the maintenance of trust in between the buyers and sellers in crypto world especially.

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By the use of small contracts escrow mechanism is implemented in cryptocurrency transactions and We all know that smart contracts are always self executing and these are self executing because these have an agreement in direct way already written into code form so small contracts are responsible for automatic execution of agreed upon actions.

I would like to further move into it's working but before this I want to make my concepts more clarify by the help of an example So you have to suppose that there is an artwork which is in its digital form and you want to buy it so without an escrow mechanism use some concerns may arise regarding legitimacy of person which is selling his artwork or quality of artwork.In this way is up to you that if you want to make something more secure and transparent like this then you can use escrow services for preventing it from any risks and challenges.

There could be the involvement of different steps in the working of escrow mechanism in Crypto world.....

Agreement

First of all there should be an agreement in a proper way and in which thing there should be an agreement? so you and seller on terms of transactions and there should also be an agreement on the relevant details which most probably include price and delivery requirements etc.

Escrow Setup

When you and seller are agreed completely to use an escrow services then there is a need of escrow setup So in this way you have to create small contract for the holding of funds until the certain level of requirements meet.

Funds Deposited

Now this is again one of the most important step in which you have to deposit funds so amount at which you are agree you would send it to the small contract address so that the funds would be hold now in escrow.

Verification

After the holding of funds and receiving of funds definitely there would be the step of verification.In this step an escrow services would be used for transactions verification and for confirmation of sufficiency and validity of transactions.

Delivery Confirmation

This is a step for the information of delivery of funds and in this way you will get digital artwork according to the example I have explained above and you would also verify that is it same just like your agreed upon description and quality of it or not.

Release of Fund

When you would be satisfy and happy by receiving your artwork and by its delivery,then it would be the time of notifying escrow services and escrow services then release funds to seller.

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Dispute Resolution

Now this is a last but not least step which is about resolution of dispute so in this process then there is a disagreement or dispute then escrow services In this way act as a third party which is neutral for resolving issues between two parties so in this way issue resolved by fair resolving between two opposite parties that are involved.

That was all about my topic in which I tried my best to explain the basics of this services and how these are used as well as not only this I have also explained one of the most simple example in front of you and at last I have explained steps of its working in detail and now you can understand that by the utilization of these services everybody can feel very secure because they would feel peace of mind that their friends are at a very secure place and there is extra level of security and reduction in the risk of fraud in it due to the implementation of escrow services on it.

Thanks

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