Skip to main content

Comparison between Smart contract and Escrow Services


With the evolution of technology, the blockchain has redefined itself into a boon for the industries. This shared ledger promises decentralization, transparency and immutability, which open new realms of possibilities for sharing and exchanging value.

Smart Contract

A Smart Contract is the substitution of the intermediaries involved in the execution of contracts such as escrow.

It is a computer program which is a set of codes created through Solidity programming language to automate the exchange of value between two parties according to the agreed-upon conditions. Besides eradicating the need for third-party for verification of transactions, it is responsible for eliminating the ambiguity in the whole process

A blockchain network is a perfect platform for Smart Contracts to exist as it provides decentralization and immutability, which consequently makes the amalgamation much more reliable and credible.

Escrow

An escrow account ususally involves two parties that are conducting trade that set up the account with a third party. This third party then receives a list of instructions that dictate when and how money relating to the transaction is collected and released. By using the escrow account, both parties are satisfied knowing that a failsafe exists, and the other party cannot default on payments.

Escrow accounts have tons of utility of for everyday online transactions. If two people from different parts of the world wish to exchange products or services, an escrow account helps facilitate these transactions without them ever having met, or building trust that one will not default on payment or delivery.

To Sum Up

Blockchain has smart contracts, which in this case play the same role as conventional Escrow. Smart contracts help when it comes to the execution of agreements. Unlike conventional Escrow, smart contracts do not act as third parties

but facilitate direct transactions between parties to the agreement. And the contract is only executed once specified conditions are met.

With smart contracts instead of third parties you are assured of;
  1. Faster transaction capabilities because it is automatic and directly between parties
  2. Cost effective because it does not involve any third party that will require fees for service rendered
  3. No human error because of the computational feature of the smart contracts
GET TO KNOW MORE ABOUT CRYPTOCURRENCY EXCHANGE DEVELOPMENT!!
Labels:

Comments

Post a Comment

Popular posts from this blog

The way to Develop Tron Based Wallet like TronPay

 Developing Tron based wallet like TronPay is Easier now! Before getting into the thoughts of  “Why so?”, let’s get into the details of Tronpay wallet and why its sought by the Tron users. The Tron platform has marked a huge growth due to the rise is the user count in the Tron Blockchain.  The Launch of Tron pay comes after the TRON network has seen a continuous rise in the transactions carried out in the platform. The network has reached more than one million daily transactions, nearly double the transactions done in the Ethereum platform. The rise in the users is mainly due to the increase in the simple betting Dapps launched on the network. The best example will be TronDice and TRONbet; as both these apps have surpassed the 200 million TRX payout mark within a month. As a user, one can easily access these DApps using TronPay. TronPay Wallet is a chrome wallet extension for the TRON (TRX) network, that allows the TronPay users to receive or sen...
Post a Comment
Read more

Develop Your Own DeFi DEX Aggregator like ParaSwap - Pulsehyip

Why   t o   Build   DEX Aggregator   l ike Paraswap? Paraswap is an Ethereum based DEX aggregator launched to sort out liquidity issues in decentralized exchanges. This Paraswap is a popular and fastest liquidity aggregator. As it is very quick and won’t hold any swapping fee charges, most of the people seek towards this Paraswap to start a DEX aggregator like ParaSwap.  Due to the best price range offered by Paraswap for the assigned Ethereum or ERC-20 tokens, this Paraswap DEX aggregator is more admirable than other DEX.  What   i s Paraswap? Paraswap is a decentralized finance based DEX aggregator that solves difficult liquidity problems along with the elimination of gas fees with high secured decentralized exchanges. While coming to the main functional roles of this Paraswap DEX aggregator, it acts as the pool in which liquidity from different DEXs to improve the  gas efficiency with speed enhancement.  While comparing to other DEX p...
Post a Comment
Read more

How to Start A Cryptocurrency Investment Business with Blockchain Technology

How to Start A Cryptocurrency Investment Business with Blockchain Technology  There is increasingly growing interested in cryptocurrency these days. You may have heard of it before or not. Either way, it is a multi-trillion-dollar financial industry that is practically flying under the radar of most people, which makes it a prime time to get positioned before it hits the mainstream.  And the time is now because cryptocurrency investment Business with blockchain technology awareness is going viral. The blockchain is a distributed ledger that retains a comprehensive and an unedited record of all relevant information related to a digital transaction. This ledger allows settling transactions instantly and firmly.  The blockchain is a blockbuster in Cryptocurrency business as it reduces the length of time it takes to complete a payment and eliminates redundant processes. Data management is a big problem in cryptocurrency business, but with the help of blo...
12 comments
Read more