Blockchain Escrow: How XRP, XLM, HBAR & XDC Are Transforming Secure Transactions

From Traditional Escrow to Blockchain-Based Escrow Solutions

What is Escrow?

Escrow is a financial arrangement where a neutral third party holds money, documents, or assets until all conditions of a transaction are met. It is widely used in real estate, online marketplaces, and business transactions to ensure security and fairness between two parties.

How is Escrow Useful?

Escrow provides a layer of trust by reducing the risk of fraud. Consider an example:

• Buying a House: When purchasing a home, the buyer deposits funds into an escrow account, ensuring the seller only receives the money once the title is transferred and all conditions are met.
• Freelance Work: Platforms like Upwork use escrow to protect both clients and freelancers. A client deposits funds into an escrow account, and the freelancer gets paid only when they complete the agreed work.

By holding funds securely and ensuring terms are met before release, escrow builds confidence in transactions. Before we dive into the world of blockchain escrow, let’s first review how a traditional escrow is used.