Coinapult bitcoin’ve been on the trot all afternoon. He trots out his old jokes at every party. Constitution to justify their actions, much as the slave holders did 150 years earlier. 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company.
Published by Houghton Mifflin Harcourt Publishing Company. Join over 94,000 students, learn all you need to know about Bitcoin. One Email a Day, 7 Days in a Row. Using a 3rd party escrow service to handle a Bitcoin payment is a good idea when transacting with an untrusted party. Escrow protects sellers from fraudulent buyers by requiring the Bitcoin be deposited up front. Likewise, buyers are protected if the seller turns out to be a scammer and doesn’t deliver the goods.
In the event of such a dispute, the escrow service will act as the arbitrator and determine who should ultimately receive the Bitcoin funds. Recently I’ve made a few large Bitcoin related purchases with people whom I’ve never met before. This of course required me to use some sort of Escrow service to conduct the transaction. When you’re using Bitcoin escrow services you don’t actually solve the original problem you’re dealing with, which is not to send your money to strangers. You have no idea who is behind the escrow site and why should you trust them with your money more than you trust the person you’re buying from? There aren’t many reputable Bitcoin escrow services Unfortunately you can’t find many well known Bitcoin escrow websites. However it too is not that reliable.
For example this user sold a domain name through BTCrow but once the transaction was complete, he didn’t get his money. Another thing to consider is that BTCrow has changed hands since it was first set up. When I personally tried to use it for the first time the confirmation emails took more than an hour to arrive. In the end I decided to send the money directly to the seller since I was afraid their system wasn’t up to date. Even though at this point I did a thorough check on the identity of the seller, it still didn’t feel very comfortable sending out a few thousand US dollars without the insurance that I will get what I paid for. Also the BTCrow user on Bitcoin talk was idle at the time and didn’t seem to be responding to any BTCrow related threads. Escrow My Bits Formed around 2 years ago Escrow My Bits is another Bitcoin escrow service you may want to consider.
You deposit your funds into a bitcoin address controlled by the site and the funds are forwarded to cold storage. You deposit into a bitcoin address controlled by Coinapult and Coinapult pegs the value to a fiat or asset value. Your funds are kept in a secure 2 of 3 multi-signature transaction where the site holds only one key. The upside of Escrow my Bits is that if the transaction takes a long time to go through you can still peg it to a dollar value and you won’t be affected by the exchange rate.
What if I don’t want to use a 3rd party site? There are still some viable options that will allow you to conduct a Bitcoin transaction through Escrow. Another option, which I personally prefer is using a multisig service like Bitrated. Bitrated isn’t an escrow service, it’s a multisig wallet that allows 2 out of 3 people to complete the transaction. A multisig wallet is a shared wallet that requires a certain amount of signatures in order to transfer funds from it. For example, the wallet can be shared by 3 people and when any 2 out of the 3 decide to send the money, the order is executed. BItrated is basically a platform which introduces buyers and sellers with arbitrators.
It then creates a multisig wallet shared by all three parties, that requires only two signatures to release the funds. So if both seller and buyer agree that the transaction is complete the arbitrator isn’t needed. Of course arbitrators usually charge a fee for their services but it’s usually a very decent one. The fees change depending on whether the arbitration is ultimately needed or not.