question related to Escrow.

[Ejarwan]

well I do realize this is a noob question, but here it comes.
what is Escrow and how is it used?

[hilariousandco]

Buyer sends money to escrow, you send item to buyer, escrow sends funds to you.

[Ejarwan]

Buyer sends money to escrow, you send item to buyer, escrow sends funds to you.

what is Escrow? lol is he a person? (noob q again)
I want full details
like how to use it and such things.

[hilariousandco]

Buyer sends money to escrow, you send item to buyer, escrow sends funds to you.

what is Escrow? lol is he a person? (noob q again)
I want full details
like how to use it and such things.

On here an escrow agent is usually a trusted user, but there are escrow companies. There's a list of forum escrowers here: https://bitcointalk.org/index.php?topic=133931.0

[Kluge]

Escrow is when an uninterested third-party (the escrow agent) holds something important to at least one of the other parties. Escrow agents can be either one person or a group of people acting as some type of organization (web services are always still handled by human beings in case of dispute, though).

Usually on this forum, it's used where someone wants to sell something, but the buyer doesn't want to pay upfront because he doesn't fully trust the seller. Instead, the seller finds a reputable escrow agent who will hold his money which the buyer must also agree to use. Then, the escrow agent is basically just a contract enforcer. He ensures the contract (this could be as simple as the seller saying "I'll sell you two working 1H-IEN4-KL LCD monitors for 1BTC") is fully enforced. When the escrow agent is satisfied that the contract has run successfully to its end (or when the buyer tells the escrow agent escrow can be released to the seller), the escrow agent will send the coins or whatever to the seller.


Escrow can't protect you from everything and is constrained by the contract. They often act as arbitrators in case of dispute, where they'll settle on who breached contract and what the outcome of that should be, which may or may not be in your favor. A weak purchase agreement like the simple example I gave is an example of abusing escrow due to how much is left up in the air (Who pays shipping on returns? What happens if there's a dead pixel? etc). Oftentimes, purchase agreements are really vague, so you're relying on the escrow agent just "doing what's right," which is obviously very subjective.

There are a bunch of other uses for escrow, though. If a lender wants collateral from a lendee, the lendee would want that collateral held by an escrow agent so they know the lender won't just run off when given the collateral. If someone has a giveaway where they offer to give .05BTC to charity each time someone posts an original photograph of a llama spitting, they might want to pre-pay donations into escrow so the people taking pictures of llamas know their efforts won't be wasted.

[Ejarwan]

Escrow is when an uninterested third-party (the escrow agent) holds something important to one of the other parties. Escrow agents can be either one person or a group of people acting as some type of organization (web services are always still handled by human beings in case of dispute, though).

Usually on this forum, it's used where someone wants to sell something, but the buyer doesn't want to pay upfront because he doesn't fully trust the seller. Instead, the seller finds a reputable escrow agent who will hold his money which the buyer must also agree to use. Then, the escrow agent is basically just a contract enforcer. He ensures the contract (this could be as simple as the seller saying "I'll sell you two working 1H-IEN4-KL LCD monitors for 1BTC") is fully enforced. When the escrow agent is satisfied that the contract has run successfully to its end (or when the buyer tells the escrow agent escrow can be released to the seller), the escrow agent will send the coins or whatever to the seller.


Escrow can't protect you from everything and is constrained by the contract. They often act as arbitrators in case of dispute, where they'll settle on who breached contract and what the outcome of that should be, which may or may not be in your favor. A weak purchase agreement like the simple example I gave is an example of abusing escrow due to how much is left up in the air (Who pays shipping on returns? What happens if there's a dead pixel? etc). Oftentimes, purchase agreements are really vague, so you're relying on the escrow agent just "doing what's right," which is obviously very subjective.

There are a bunch of other uses for escrow, though. If a lender wants collateral from a lendee, the lendee would want that collateral held by an escrow agent so they know the lender won't just run off when given the collateral. If someone has a giveaway where they offer to give .05BTC to charity each time someone posts an original photograph of a llama spitting, they might want to pre-pay donations into charity so the people taking pictures of llamas know their efforts won't be wasted.

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

[hilariousandco]

Anyone can offer to be one but it's pointless using them unless they've built up some rep and trust, otherwise you might as well not even bother using one.

[Kluge]

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

Anyone can hold collateral. It doesn't require any special equipment. It's ridiculously good pay for the time, usually, but in cases where there's a dispute and a weak contract, it can easily take up waaaay more time than it's worth, especially when there's a language barrier.

Actually - I forgot to mention something pretty important - multi-sig escrow, where you don't even have to worry about the escrow agent running off with the money (unless either the buyer or seller are colluding with the escrow agent to scam one of the other guys). Forbes has an article on multi-sig and some of the implications here: http://www.forbes.com/sites/johnvillasenor/2014/03/28/could-multisig-help-bring-consumer-protection-to-bitcoin-transactions/

[Light]

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

In effect, yes - it's simply a person agreed upon to hold something of value to ensure that the trade goes through as agreed and possibly provide arbitration in the case that the trade falls through.

Technically, yes as long as both parties agree - however generally the escrow's who actually get customers are those who have a long time reputation on this forum and have handled reasonably large sums (at any given point in time).

[r34tr783tr78]

If you want to do escrow without reputation, you can always make a deposit with a trustworthy escrow, this way people will trust you up to the amount you deposited. Slowly, people might start trusting you even without the deposit.

[Pobre]

Escrow is when an uninterested third-party (the escrow agent) holds something important to one of the other parties. Escrow agents can be either one person or a group of people acting as some type of organization (web services are always still handled by human beings in case of dispute, though).

Usually on this forum, it's used where someone wants to sell something, but the buyer doesn't want to pay upfront because he doesn't fully trust the seller. Instead, the seller finds a reputable escrow agent who will hold his money which the buyer must also agree to use. Then, the escrow agent is basically just a contract enforcer. He ensures the contract (this could be as simple as the seller saying "I'll sell you two working 1H-IEN4-KL LCD monitors for 1BTC") is fully enforced. When the escrow agent is satisfied that the contract has run successfully to its end (or when the buyer tells the escrow agent escrow can be released to the seller), the escrow agent will send the coins or whatever to the seller.


Escrow can't protect you from everything and is constrained by the contract. They often act as arbitrators in case of dispute, where they'll settle on who breached contract and what the outcome of that should be, which may or may not be in your favor. A weak purchase agreement like the simple example I gave is an example of abusing escrow due to how much is left up in the air (Who pays shipping on returns? What happens if there's a dead pixel? etc). Oftentimes, purchase agreements are really vague, so you're relying on the escrow agent just "doing what's right," which is obviously very subjective.

There are a bunch of other uses for escrow, though. If a lender wants collateral from a lendee, the lendee would want that collateral held by an escrow agent so they know the lender won't just run off when given the collateral. If someone has a giveaway where they offer to give .05BTC to charity each time someone posts an original photograph of a llama spitting, they might want to pre-pay donations into charity so the people taking pictures of llamas know their efforts won't be wasted.

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

The best person I can suggest you for an escrow is "escrow.ms" , search him out, he'll do any escrow job for you

[notlist3d]

There are a few members who seem to specialize in escrow.  Make sure to look into past deals, don't just allow anyone to escrow.  But is a very good idea if seller has low reputation.

[Faince1985]

Escrow is a way to say a middleman - You can use it as an intermediate to ensure both parties stand to their part of the bargain. Both buyer and seller deliver to escrow and Escrow release to each or Buyer send BC to escrow. Seller send item to buyer, Escrow send BTC to seller.

[nicojuritz]

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

Anyone can hold collateral. It doesn't require any special equipment. It's ridiculously good pay for the time, usually, but in cases where there's a dispute and a weak contract, it can easily take up way more time than it's worth, especially when there's a language barrier.

Actually - I forgot to mention something pretty important - multi-sig escrow, where you don't even have to worry about the escrow agent running off with the money (unless either the buyer or seller are colluding with the escrow agent to scam one of the other guys). Forbes has an article on multi-sig and some of the implications here: http://www.forbes.com/sites/johnvillasenor/2014/03/28/could-multisig-help-bring-consumer-protection-to-bitcoin-transactions/

In other words, an escrow is an intermediary or middle man that makes sense now.Thanks.

[BigMac]

If you want to do escrow without reputation, you can always make a deposit with a trustworthy escrow, this way people will trust you up to the amount you deposited. Slowly, people might start trusting you even without the deposit.

But then why would people use your new escrow service instead of that experienced trustworthy escrow?

[giveBTCpls]

If you want to do escrow without reputation, you can always make a deposit with a trustworthy escrow, this way people will trust you up to the amount you deposited. Slowly, people might start trusting you even without the deposit.

But then why would people use your new escrow service instead of that experienced trustworthy escrow?

Yeah, there is always a risk when you use a escrow that hasn't been timetested by a lot of people, but with this paranoid mentality there would be no new successful business ever, everyone has to start from scratch once (unless you are born rich  )

[InwardContour]

Without escrows this forum will be full of scammers, it's a really useful service for all the bitcoin users.

[john1975p]

Without escrows this forum will be full of scammers, it's a really useful service for all the bitcoin users.

There is still so many scammer around, noobs forget to use escrow or don't want to waste time on escrow
and at the end they got scammed.

[r34tr783tr78]

If you want to do escrow without reputation, you can always make a deposit with a trustworthy escrow, this way people will trust you up to the amount you deposited. Slowly, people might start trusting you even without the deposit.

But then why would people use your new escrow service instead of that experienced trustworthy escrow?

If the new escrow member starts with no fees, there will be a reason for them to try his service.

[HELP.org]

so it's more like a middle man.
that's cool.
can any1 be an Escrow? (I dont want to be/) just asking how hard it is to be 1?

Anyone can hold collateral. It doesn't require any special equipment. It's ridiculously good pay for the time, usually, but in cases where there's a dispute and a weak contract, it can easily take up waaaay more time than it's worth, especially when there's a language barrier.

Actually - I forgot to mention something pretty important - multi-sig escrow, where you don't even have to worry about the escrow agent running off with the money (unless either the buyer or seller are colluding with the escrow agent to scam one of the other guys). Forbes has an article on multi-sig and some of the implications here: http://www.forbes.com/sites/johnvillasenor/2014/03/28/could-multisig-help-bring-consumer-protection-to-bitcoin-transactions/

A real escrow agent is licensed and insured because they are holding your funds.  Some people on here claiming to escrow lend out your funds while they are holding them so be careful with unlicensed escrow services.  people also buy and sell forum accounts so you can't always depend on the rating system.

Also note that dispute resolution is NOT part of escrow, it is a separate thing.  It is a conflict of interest for an escrow agent to also resolve a dispute but many of the unlicensed escrow services on here do both.  A licensed escrow service such as escrow.com has a third party resolve any disputes that arise.  In some cases these unlicensed escrow agents have simply closed up shop and took all the funds.  Also, if something is supposed to be mailed to you the escrow agent has no idea what is in the box unless it goes to them first.

The multi-sig thing is also not technically escrow, it is a mediated transaction.  This is because the mediator never has access to the funds.  I think this will be the way of the future because you don't have to turn over the funds to a third party like escrow.