|
Title: Can someone explain what escrow is? Post by: bbmolo on July 31, 2013, 04:41:15 PM I've trying to invest in some mining rig shares and most offer escrow. However I still don't know what it is. Should I use it since it seems many people are using that service?
Title: Re: Can someone explain what escrow is? Post by: elasticband on July 31, 2013, 04:41:54 PM http://en.wikipedia.org/wiki/Escrow
Title: Re: Can someone explain what escrow is? Post by: mufa23 on July 31, 2013, 04:46:50 PM A middle man (trustworthy oversees a trade.
For instance, you sell me a computer for 10 BTC. I would send the Bitcoins to the escrow, and you would send me the computer. Provide proof of shipping (picture, tracking label, etc), and I would confirm I received the computer and it works. Upon knowing you completed your end of the bargain, the escrow would send you my Bitcoins to an address you provide. This allows us to trade without having to worry about trusting each other. Title: Re: Can someone explain what escrow is? Post by: Bit being on July 31, 2013, 08:32:37 PM Party #3 holds funds for business deal between parties #1 and #2. When parties #1 and #2 are happy with the transaction then party #3 releases the funds to the new owner.
PARTY!!! 8) Title: Re: Can someone explain what escrow is? Post by: Kouye on July 31, 2013, 08:54:51 PM When you pronounce "Escrow" to a french guy, he understands "Escroc", which basically means scammer. ;D
Didn't know the word either a couple months ago, but that cracked me up. Imagine you want to trade your 1 BTC with someone offering 100 LTC. Since it looks a bit fishy, you ask him to use escrow. You both agree on a person you trust. Jonh K is probably the most trustworthy escrow here on this forum. You send your 1BTC to the escrow. Someone sends their 100LTC to the same escrow. Once escrow received both, and it's confirmed, he sends you the 100LTC, and sends someone the 1BTC. If escrow receives your 1 BTC, and does not receive the 100LTC from someone, he will send back the 1 BTC to you. The difference is here. If you had sent your 1 BTC to someone first, someone would have never sent it back, if he intended to steal it from you. |