We all know that Bitcoin transactions are irreversible and the only solution for its safety purpose is Bitcoin Escrow Services to the customer, which gives them safety and trust towards the Crypto platforms.
Bitcoin EscrowScript may be a website script that will be written in all programming languages. It will be like JAVA, HTML, PHP, MEAN Stack, LAMP Stack, Laravel, or other programming languages. This Bitcoin EscrowScript helps to line up a safe and secured Peer to Peer cryptocurrency exchange website like LocalBitcoins, whereas Purchase and sellers can smartly transact their bitcoins fastly with no pitfalls. Just in case any trading mismatch happens, the buyer or seller can process dispute resolution with the governance of escrow admin.
Enkryptoz, a leading bitcoin exchange software, that helps startups to initiate bitcoin escrow services like bitraded, LocalBitcoins, set escrow,bitify, etc.
Let’s have a quick look at why bitcoin escrow has come to plug, what bitcoin escrow services are, how multisig wallets are utilized in escrow concept, how smart contracts play an enormous role in escrow concepts, and tons more.
We know bitcoin, the fashionable cryptocurrency that becomes an undeniable payment method at the most everywhere around the globe. It’s been deemed as the master of cryptocurrency because it has paved how for other cryptocurrencies like ethereum, monero, XRp, et al. to survive within the crypto marketplace. People that resided during this crypto industry could also be conscious of these monumental successes of bitcoin throughout the years of the journey. But, there are some important things that we’d like to concentrate on more, especially while sharing bitcoins.
In the case of bitcoin:
“The success derived from how for huge adoption, the adoption derived from how for complexities, and therefore the complexities resulted in anonymity.” you’ll see the whole story has conveyed into the negativity, right?
Anonymities and insecurity have happened while transacting bitcoin. So, the success has indirectly resulted in negativity, and therefore the people began to leave the bitcoin network. By realizing the bad impact, the crypto industry has taken some initiatives to rescue the system, especially to smart the bitcoin payments and transactions.
Bitcoin Escrow – the primary rescuing concept of the bitcoin industry – has smashed out the hurdles while transactions bitcoins to a 3rd party.
What is Bitcoin Escrow?
Bitcoin Escrow may be a Service that helps to create a secure cryptocurrency world, with increased maximum transaction speed & trustful fund transactions by protecting both buyer and seller from scams. Escrow already existed in other financial systems, especially in banking. The concept works an equivalent within the bitcoin industry too.
How does bitcoin escrow work?
Escrow intermediates the fund transaction between a buyer and a seller. Whereas the escrow could also be a 3rd party admin, and nowadays, smart contracts have replaced the necessity of admins.
In general, in bitcoin trading/exchange/ transaction, a buyer may request a seller to send bitcoins for the cash which he/she has. The vendor receives money from the customer through a medium, and he provides a product, service, or bitcoin to the customer after verifying the received payment.
In some exceptional cases, the vendor may abscond after receiving payment, and in some cases, the customer may abscond without sending the payment. If this happens, outside of the exchange, each side could also be left helpless and can end in significant losses. Also, they can’t legally follow a case of bitcoin decentralization.
The above we discussed may happen while purchasing a product from an e-commerce store, booking tickets online, or any bitcoin-centric transactions.
So, here we discussed how a bitcoin escrow might safeguard buyer and seller?
At anycast when transacting bitcoins, there’ll be two mandatory processes,
1. Buyer sends the payment as money or bitcoin to the vendor so as to urge a service or product
2. Seller sends service or product or even bitcoin for the received payment.
At the most, Here two main people are buyer and seller, and at any time, there could also be an opportunity for anyone to become a scammer. So let’s examine how bitcoin escrow is set on it.
Here, We discussed, bitcoin escrow will break the two process
1. The Buyer & Seller signs in an agreement to send money or payment to a third-party in the escrow system.
2. The escrow admin verifies the payment from the clients and, therefore, the bitcoin from the vendor.
3. The escrow admin sends bitcoin to the customer after he gets a confirmation from the vendor.
4. The admin won’t release bitcoin without proper confirmations. therefore the buyer gets what he thought to shop for, and therefore the seller receives money for what he sent to the customer
So the escrow transaction processed as follow,
1. Buyer and seller check in an agreement within the governance of admin for what they’re getting to transact with one another
2. The agreement would contain every single detail about the transactions, which incorporates money, time and etc
3. After the agreement is processed, the vendor sends bitcoins to the admin wallet.
4. and therefore, the buyer is going to be notified via email or a message about the vendor having deposited bitcoins.
5. After the notifications are received, the customer sends payment to the vendor.
6. the vendor checks payment and can instruct the admin to release funds to the buyer
7. The contract gets closed after the customer receives bitcoin from the escrow admin
Let see the Important Three Questions
1. What if the escrow admin steals my bitcoin as we are storing bitcoins inside a third-party wallet?
2. Workflow for purchasing bitcoins from the vendor, So what if the customer purchases a product from a web shopping store. The above escrow flow powers the vendor side alone, as he made the ultimate decision to release bitcoins. If the customer receives a product/service from a web store by sending bitcoins, then who has the high authority to form decisions and the way escrow will secure a buyer?
3. How escrow will help each side of the received service/ product isn’t equivalent, as mentioned within the contract/agreement.
Never opportunities for Escrow to Steal money From Buyer Or Seller
Because the people that are participating within the transactions are given randomly generated three different secured encrypted keys, which are characterized to match one another. These kinds of keys are automatically generated with the concept of AES (Advanced Encryption Standards ). The wallet which the escrow admin holds is meant to unlock when all the three keys are matched. This is often how MultiSig wallets are taken place in escrow systems.
So, none of the parties can have access to open the wallet without getting permission from the opposite two people.
So not only the admin, no one can steal any type of Currency during the escrow transaction.
Who has high rights when a seller sends a product rather than bitcoin, and therefore the buyer sends bitcoin as payment?
The buyer has the decision-making authority, as he’s the top user. Let’s say a buyer purchases a face makeup kit from an e-commerce store by sending bitcoin. The customer has got to make the acquisition from an escrow-enabled bitcoin transactions portal.
Here the escrow will send payment to the vendor after the merchandise is received at the customer side.
This concept is becoming a trend in e-commerce stores as many wish to form payments. Merchants who wish to sell products from bitcoin payment need to register under an escrow-enabled bitcoin transactions portal.
This is how the bitraded works and safeguards merchants and customers.
In this manner, the merchant can increase trust, and therefore the consumers can experience the graceful bitcoin payment processing for the purchased items.
How escrow Will help If something goes bad?
Escrow will process a dispute resolution when a complaint is recorded from either buyer or seller. In this manner, the two people can claim their loss or rights legally through court by mediating the escrow admin.
So, I hope you bought a transparent idea about what escrow is, how it works, and the way buyers and sellers benefited through escrow. Let’s see the way to turn the escrow concept into a business.
How to start escrow services as a business?
You can easily start providing escrow service to varied countries for various crypto-related transactions, including ICO, STO with the assistance of advanced Bitcoin EscrowScript. Yes, The Script enables you to line up a website/portal where the customer and seller can transact their bitcoin by mediating you as an escrow admin.
But, you’re not getting to be the primary to supply escrow service. You’ve got to face a lot of competitors, so your escrow services need to be unique from others to survive.
How to make your escrow services a singular one?
1. Integrate a multi-sig wallet
2. Integrate escrow process for Blockchain, ICO & STO related tokens transactions
3. Smart Contract can eliminate the necessity for manual admin activities and automate the whole process
4. Smart contracts are a must if you’re planned to supply escrow services ICO, STO Token transactions
5. Integrate with e-commerce portals, gather a gaggle of merchants/dealers/sellers, and encourage them to gather trust by providing a trust score in your portal.
6. Integrate escrow for affiliate cashback/ deals or coupon-related transactions when it involves e-commerce or online booking transactions.
Likewise, Enkryptoz is prepared to supply you with an “N” Number of suggestions and consultations to form your escrow services that stay unique.
Enkryptoz Escrow Script – Bitcoin EscrowScript
Enkryptoz escrow script is standalone within the marketplace because the Script comprises of following features and are made capable of working with changing cryptocurrency trends
1. Inbuilt with Multisig wallet (bitgo js wallet / copay /GreenAddres / Xapo)
2. Flexible to Execute with Smart contracts.
3. Accelerated Speed.
4.High speed in generating encrypted keys.
Our Script is powered with Merchant APIs, Reputation API, Ratings API, Contracts API, Price API, Affiliate API, Bitcoin Price API, Cashback API, and tons more needed APIs.
5. KYC/ AML/OTC Integrated.