Why Escrows Matter
Last updated
Was this helpful?
Last updated
Was this helpful?
Escrows are a great way to solve for trust.
Escrows are neutral way to hold funds while specific conditions are met. Most people tend to think about Real Estate when I mention escrows, and they are right! we DO use escrows for Real Estate and high value transactions!
But Escrows are useful for so many things, for example, marketplaces like Upwork and Ebay use them:
Ebay and Upwork can afford to build their own escrow infrastructure. Well, sort of... Ebay actually uses Escrow.com, a huge legacy escrow company that takes between (3% - 8%) , Upwork, built Upwork Escrow inc. But thats not the reality of most businesses...
Platforms that could greatly benefit from the use of escrows don't use them because of the technical complexity and cost of building an escrow infrastructure.
Escrows with Fiat are next to impossible to build (Legacy escrows). Escrows are more commonly found on high value transactions, like Real Estate, Merge and Aquisitions, and cross border trade mainly because they are costly and sloe. Fiat requires bank accounts or a complex settlement system to achieve this functionality. I've met people who toook a year to build their escrow infrastrucute, A YEAR!
Blockchain obviously solves this, but complexity to built it is still high. Blockchain and web3 are the perfect solution for this, but we can't expect for every marketplace out there to have a Smart Contract engineer. Getting to experiment, test and scale with this technology is resource intensive and has a steep learning curve.
A simple, scalable solution for anyone to integrate blockchain-based escrows to their payment flow.
Get Started: Begin integrating Trustless Work today.
Learn More: Explore our mission, vision, and journey so far.
Contact Us: Need help? Reach out to our team for assistance.
