You have most likely used, or heard of, "escrow"- most likely when you were involved in a transaction involving real estate. But what does escrow mean exactly? In reality, it is actually a very simple & straightforward process. In fact, you & everyone around you use it every single day, without even realizing it. Thus, escrow is, arguably one of the most important systems in our daily lives, albeit a very quiet one. In this article, we dive deep into the following keys points:
TL;DR: Modern escrow is slow, expensive, and very formal. Bitcoin allows escrow to be cheaper, faster, and more secure than ever. Given this, it will force the entire industry to rethink what escrow is, and set an entirely new standard that banks have no chance of fighting.
To begin, let us start by defining the actual word - “Escrow” derives from the Middle English word “Escrowl”, which means “scroll”. But if we aren't speaking in linguistic terms, Escrow can be defined very simply: Buyer and seller protection. The actual process is very simple, and can be broken down into 5 easy steps: