Bitcoin escrows are a very useful means of carrying out transactions that involve large amounts of funds. In contrast to traditional banking systems that make it difficult to access escrow services because of the legalities involved, the use of Bitcoin escrows eliminates the need for lawyers and their interference, which will, in turn, eliminate the cost of hiring them.

Because it is blockchain-based, Bitcoin escrow is a cost-effective way of running a reliable escrow service, as the transaction fees are reasonably low compared to traditional escrow services. Furthermore, with the Bitcoin escrow service, transactions can be made across the border at no extra cost.

Starting a Bitcoin escrow service is one that can get lucrative, however, there are certain principles the creator of the service needs to know, and there should be knowledge about how cryptocurrency based escrow services function. Here’s how a Bitcoin escrow service works:

• Seller and Buyer Agree to Terms: For a transaction to begin, both parties need to be registered on the Bitcoin escrow service site, after which all the parties come to an agreement on the transaction terms drawn up using multi-signature.

• Buyer pays for Bitcoin Escrow Service: After alignment of the terms and conditions of the agreement, the buyer then makes the Bitcoin payments, in order to secure the account, then after verification of the Bitcoin payment, a notification is sent to the seller indicating that there has been a securing of funds in the Bitcoin escrow account.

• Buyer receives Product / Service from Seller: Depending on what is being exchanged and the terms contained in the agreement, after verification of payments the seller gets the authorization to send services/products or whatever is being exchanged.

• Acceptance of Service/Merchandise: According to their agreement, after the buyer has got what he paid for, an authorization for payment to the seller takes place.

• Bitcoin Escrow makes Payment: After every term and condition has been met, the Bitcoin escrow service makes the required payment to the payer with the funds originally deposited.

It is important to note that if any party refuses from the terms and conditions by default, the Bitcoin escrow service reserves the right to decide what action should be taken. There are different types of cryptocurrency based escrow service on the internet, each offering one or another form of escrow service based on their cryptocurrencies and the requests of their users.

Bitcoin and cryptocurrencies are gaining popularity as a very reliable method of transferring payments, however, at some point in time, news about a Bitcoin getting scammed hits the crypto community, and these scams are usually perpetrated by anonymous individuals who come in the guise of requesting payments for a service or product that never gets delivered.

Bitcoin is decentralized, and transactions that take place on the Bitcoin blockchain cannot be reversed, as the transaction gets recorded permanently on the blockchain. This is why Bitcoin escrows are created.

One way of creating a Bitcoin escrow service is by using a special platform that uses a special wallet for Bitcoins called a multi-signature wallet. A multi-signature wallet is basically a specially created Bitcoin wallet that will require the private keys of all the parties involved for transactions to get signed. Another and most effective method is by creating a platform that can handle multiple escrow requests simultaneously.

A lot of Bitcoin escrow services for a particular transaction usually involve the participation of three parties - the escrow agent, the receiver of the payment, and the person who sends the payment. It is designed in such a way that each of the participants gets one private key, and for any transaction to get sent there has to be at least the use of two private keys.

Normally, escrow agents are holders of the Bitcoin currency who have high reputation and are trusted in the Bitcoin community, or the escrow agents can also be registered arbitrators whose duty it is to judge any disputes that may occur in a transaction.

By doing so, the buyer enjoys protection if it turns out that the seller is a fraud, the seller is also certain that payment will be made whether the buyer wants to pay or not.



Creating a Bitcoin Escrow Service like Local Bitcoins

For anyone with the intentions of creating escrow services for bitcoins, it is very possible to create and own a local bitcoin exchange for this, and you can build one without being very tech savvy, without paying so much for necessary infrastructure and software necessary for creating the escrow service.

There are different software packages available, that will assist when creating a bitcoin escrow service, and one of such software is Merehead, which offers users a white label service that is fully branded, customizable, and manageable. Local bitcoins exchange and escrow services can be set up and operate within 45 days.

When creating local bitcoins, there are two solutions offered- Liquidity solution and white label solution, each functioning in its way to enhance the exchange and increase productivity. Merehead is the ideal solution for any business that wants to offer an escrow service to its target consumers.

The platform helps you in limiting your costs to the barest minimum, as you neither have to invest in any coder to create your own custom platform nor you need heavy liquid investment to create the necessary Bitcoin liquidity to get your business going.

The Merehead will work for you specifically because it comes tailor-made for your own language and has seamless integration to be paired with any currency of your choice. The app comes ready and branded in your own name or that of your business so that gives your business the credibility it needs to attract newer customers within your niche.

Creating a Bitcoin Escrow Service like Remitano

Remitano is a bitcoin wallet that was created to provide a peer-to-peer bitcoin escrow service, where people can make bitcoin exchange through the Bitcoin exchange businesses. One of the prominent features of the service is its security, as it is the most secure platform to carry out bitcoin trading.

Remitano has a reputation for being able to offer escrow services for bitcoin and fiat transactions.

The Remitano platform, like other escrow services, comes with amazing components that make it a good platform for escrow services, and these components include:

• Security: The platform has different security protocols to ensure the safety and security of transactions taking place on the platform.

• Service Availability: The service is available for different countries around the world including the US, Australia, Tanzania, UK, Nigeria, Cambodia, Ghana, Sweden, Taiwan, Malaysia, China, Vietnam, and India. However, plans for reaching more countries soon are underway.

• Payment Method: Buying or selling bitcoin is a function of the availability of a local bank account.

• Fees: Unlike other platforms, Remitano charges are much lower, a nominal fee of 0.5% is charged.

• Processing Time: The processing time depends on the sellers and buyers, but transactions involving the transfer of funds through bank accounts take few minutes to get confirmed and completed.

Creating a bitcoin escrow service using the Remitano system is possible, as you can either contact the developers or hire them to come up with something similar, as their bitcoin escrow platform developers are vast in knowledge and know just what to do. Another option is to get the Remitano clone script, which gives you an editable version of the Remitano platform, thereby giving you the exact features of the platform.

What to Consider When Starting a Bitcoin Escrow Service