Escrow
A neutral third party or smart contract that holds funds or assets until both sides meet the agreed terms, then releases them, cutting counterparty risk.
- glossary
Escrow is a financial arrangement where a neutral third party holds assets during a transaction until all conditions are met, protecting both buyer and seller. Traditional domain escrow services like Escrow.com charge fees and require trust in the service provider. Smart contract-based escrow for tokenized domains eliminates the need for trusted intermediaries—the blockchain itself acts as the neutral party, automatically releasing funds and transferring domain ownership when conditions are satisfied. This creates trustless, transparent, and often cheaper escrow services that execute automatically according to predetermined rules, reducing counterparty risk in domain transactions.
Related keywords
- escrow
- trusted third party
- smart contract escrow
- trustless
- secure transactions