ESCROW

By principle, an escrow refers to a contractual agreement between two parties involved in a financial transaction connected to a rendered service. In an escrow, a third party is able to receive and disburse money or documents under a condition that the service or a part of it is fulfilled. In some platforms or companies, this may be called a Milestone Payment. As the name suggests, the receiving party is able to get payment once a milestone in a project is reached. 

Such a system is made possible through smart contracts on a blockchain. Contexts wherein the escrow system is employed include, internet transactions, banking, intellectual property, real estate, mergers and business acquisitions, and even court rulings just to mention a few. This system is effective for transactions that are done in instalments or those that require full validation prior to release of payment.

While you were away, new posts appeared on our blog.