At the risk of sounding of like an idiot, how would I go about using escrow in a transaction like this? I've only ever used escrow before when it was already built in to a website. If that makes sense.
There are a few escrow holders here at bitcointalk.org that are widely recognized as honest, reliable, and trustworthy. The first that comes to mind is John K., but with just a bit of research you can find a few others.
As for how it works, there are a few options but generally:
- One of the transaction party members contacts an escrow provider that both (all?) members trust.
- The escrow provider sends a digitally signed contract to everyone participating in the transaction
- The transaction participants indicate their agreement with the terms of the transaction, or specify changes as necessary
- Once all participants have come to an agreement to the terms of the transaction, the bitcoin sender sends the bitcoins to the bitcoin escrow address indicated by the escrow provider in their contract
- Once the transaction is confirmed, the bitcoin receiver sends whatever payment, product, or service has been agreed to
- When the bitcoin provider receives the proper payment, product, or service they authorize the escrow provider to release the escrow to the bitcoin reeiver
- If there is any disagreement on the escrow release conditions having been met, then escrow provider acts as a mediator for dispute resolution
- If resolution can not be found that satisfies all parties, then the escrow provider releases the escrow in what they feel is the fairest way they can given the facts and proof provided by all involved parties.
- If dispute resolution is necessary, the escrow provider will often hold mediation in a public thread to ensure that the entire community can be aware of their activities and hold them responsible for the decisions they make.
