Escrow is a legal concept wherein a financial instrument or an asset is stored by a third party rather than two main parties of a transaction; in other words, when the user works with the Escrow, the third party plays the role a formal guarantee and promisor. The Escrow agency keeps the funds or the assets. This agency controls all the trade and transaction process and ensures that the required commitments have been made thoroughly. Therefore, no one can use his/her money without the agreement of the other participants. In Counos Escrow Service, the cryptocurrencies are used as financial trades and exchanges.
While one of the main features of cryptocurrencies is guaranteeing the people’s privacy, and the payments in these networks are decisive and irrevocable, if the user wants to apply it in financial trades related to various exchanges, there needs to offer methods to ensure transaction parties they can manage the process of the parties’ claims and disagreements.
Escrow has been designed following the aforementioned purpose. Through this service you can invite transaction parties, make a contract and safely pay the charges by the methods Blockchain technology has provided. In Counos Escrow service there has been made a structure to make sufficient security for transaction parties via predicted facilities in Blockchain technology.
Buyer, seller, and Escrow service provider create a new shared wallet with their own private key. This new wallet, which is created using Multisig capability, will only allow the withdrawal of its balance when at least two out of three of its creators confirm the outgoing transaction.
In fact, in the shared wallet, three signatures have been created, and the entire trade fee will be deposited to this wallet. If the buyer and the seller come to terms about transferring the balance, the cost will be transferred to the seller’s account without the need for the escrow system.