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Explained: How Bitcoin Escrow Works? Why they are important?

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Escrow services are great especially in bitcoin space as they give sellers confidence in the sales process by showing them that the buyer has the money.

Bitcoin transactions are irreversible, so if you are dealing with an untrusted party, it is advisable to use an escrow service to handle Bitcoin payments. Many Bitcoin markets are equipped with an integrated escrow service for safe Bitcoin transactions such as localbitcoins. Escrow services are great because they give sellers confidence in the sales process by showing them that the buyer has the money.

 

Escrow:

Escrow is when the software source code or money is held by a third party- an escrow agent – – on behalf of the client and the provider. As with a traditional escrow, an online trust works by placing money under the control of an independent and licensed escrow to protect both buyers and sellers in a transaction. Real online trust companies will be listed in a government register and users should never use an online trust service without first checking whether it is genuine by browsing the state’s online registration.

When you use Bitcoin’s escrow services, you do not solve the original problem you have to deal with, which means that you do not send money to strangers.

Escrow is a place of trust in which funds or assets ( in which case, Bitcoin or Litecoin are held with a third party until the agreement is considered to be completed between two parties. Unlike traditional foreign exchange services such as credit cards, bank transfers, and even PayPal, as a buyer, once you have spent your Bitcoin, you cannot recover your money.

 

LocalBitcoins

On LocalBitcoins, you can exchange Bitcoins for traditional currency through personal transactions. People prefer to buy and sell bitcoin OTC because it allows for faster transactions and more different payment methods.
The centralized exchange of bitcoins is slow and cumbersome, trading directly with other people using the same payment provider makes the movement of money much faster. Hundreds of Bitcoin merchants from around the world are already making a living by trading on localbitcoins using more than 60 plus payment methods.

When you buy Bitcoins from localbitcoins, you are fully protected by escrow, provided that you have proof of payment. Fraudsters benefit from the fact that the Bitcoin transaction is irreversible or try to deceive you in releasing Bitcoin without paying. Escrow is an important concept that you need to understand before you buy something in Bitcoin. As you know, when you transfer money with Bitcoin, you can’t make a refund, the protocol is set.

 

Paxful

Paxful is such a trustworthy service and its value is that it allows you to finance a trust through any form of payment in the world such as PayPal, cash, gift cards and more. Paxful is a Bitcoin market, a place where people can meet and exchange Bitcoin safely for almost any kind of payment you can imagine.

 

Traditional Custody vs Bitcoin Escrow

Traditional custody services have been in existence for decades and are becoming increasingly popular over time.
Although there are ways to establish the owner of a bitcoin account ( in most cases ) by government agencies and police departments, it is actually a lot of hard work. Bitcoin’s escrow services offer the buyer an exceptional level of protection, but they also offer several advantages to sellers. While bitcoin’s escrow services are great for stopping fraud, they are also great for being an unbiased arbiter when a dispute arises around a transaction.

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Alert: GotSatoshi Reveals the Real Identity of Satoshi Nakamoto?

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A new website called GotSatoshi now claims to know the real identity of the founder bitcoin Satoshi Nakamoto.Here is what they revelead.

The identity of Satoshi Nakamoto is one of the biggest secrets in the world, especially in the cryptocurrency industry. A lot of people have speculated the real identity of the bitcoin founder and some people such as Craig Wright has even self-proclaimed themselves to be Satoshi Nakamoto. A new website called GotSatoshi now claims to know the real identity of the founder bitcoin Satoshi Nakamoto.

 

Where in the world is Satoshi: The Countdown ends

The website ran a countdown and also posted on their official twitter account claiming to know the real identity of the founder of bitcoin.

 

The countdown which ended just a few minutes back (from the time of publication) revealed a video which is actually marketing a news website called PaiNews. It seems that it was just another joke or a method of fooling and attracting traffic to the website.

 

What are your thoughts on such lame jokes or methods of attracting traffic? Tell us in the comments section below.

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Kevin O’Leary from Shark Tank calls Bitcoin: Garbage and a Useless Currency

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During an interview with the CNBC, Kevin O'Leary from Shark Tank said that according to him Bitcoin is garbage and a useless currency.

During an interview with the CNBC, Kevin O’Leary from Shark Tank said that according to him Bitcoin is garbage and a useless currency.

 

Kevin O’Leary calls Bitcoin Worthless

Famous as the founder of Softkey, a startup that earns annual revenue of around $29 million and a host on the American business reality series Shark Tank, Kevin O’Leary is a celebrity amongst the business class in the United States of America.

 

During the interview published on 14th May 2019, Kevin expressed his thoughts over the king of cryptocurrencies bitcoin and called it a useless currency as the people who accept it just wants to hedge against the high volatility of the virtual currency. This comes in the midst of the current bitcoin surge as the virtual currency doubled its value in just a few days from below $4000 to more than $8000.

 

Kevin also explained why he has such negative views on bitcoin giving the instance of how once he tried using bitcoin for a real estate transaction in Switzerland. He said that it is not possible to get in and out of bitcoin while transacting in huge amounts.

 

He also gave an example stating that if one wants to buy real estate in Switzerland for $10 million. The seller wants a guarantee that the value comes back to him as currency at ten and the buyer has to hedge the risk of the cryptocurrency, hence it is not a real currency. Kevin said that the seller or the receiver would never want to take the risk of such high volatility and thus BTC is worthless.

 

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Amazon Owned Whole Foods, Other Big Retailers Start Accepting Bitcoin

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Whole Foods, which is owned and operated by the e-commerce giant Amazon and other big retailers are now going to accept payments in bitcoin.

Whole Foods, which is owned and operated by the e-commerce giant Amazon and other big retailers are now going to accept payments in bitcoin.

 

Whole Foods and Others accepting Bitcoin using Spedn:

A company called Flexa in collaboration with Gemini exchange which is owned by the Winklevoss Twins has managed to persuade a lot of big retailers including Nordstrom, Crate and Barrel & Whole Foods to configure the same scanners that they are already using for payments from other digital wallets like Apple Pay to work with their cryptocurrency payments app called Spedn.

 


Everything is handled on the backend of the application so that the cashier need not even have heard of bitcoin, let alone understand how to manage payment in cryptocurrency. The merchant has the choice in receiving immediately converted fiat or actually taking and holding the cryptocurrency.

 

The Spedn app lets consumers pay in bitcoin, bitcoin cash, ethereum and GUSD (Gemini Dollar), the Gemini backed stablecoin.

 

This new solution actually uses the existing systems and offers really only upsides for the companies as they don’t have to do any special training for their staff and there is no new hardware required and just a software upgrade.

 

It is worth noting that this is still in its early experimental stages for all the retailers which are cooperating with this scheme and things may of course change in the future. The thing to keep in mind here is that Bakkt is likely launching a massive payment processing service for cryptocurrency in the very near future as well and it could be a big competitor to what Gemini and Flexa are offering.

 

The company will also need to prove itself with consumers and get people to actually go out, download and use the Spedn app.

 

Can this be a game changer in retailer adoption of bitcoin and cryptocurrencies? Let us know about your thoughts in the comments section below.

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