Conventional vs Decentralized Escrow
This is a guest post from Natmin Pure Escrow on blockchain and real estate brought to you by AgentMile.
Are you looking to buy or sell something online? Worried about being cheated out of your money or goods? Unsure about who to trust? Using an Escrow Service may be the option for you.
What is Escrow?
An Escrow is a financial agreement between two parties. A third party is used to hold and regulate the payment of funds once all the terms of an agreement are met.
With conventional Escrow Services, the third party is a person, usually working for a company. With a decentralized Escrow Service, however, the platform itself — through the use of Smart Contracts — is the third party.
Problems with Conventional Escrow Services
Several problems can arise while using a Conventional Escrow Service:
- Paying for a middleman: Every single aspect of the transaction needs to be overseen by a third party. This person, and in most cases their company, need to be compensated for their time and effort, which is reflected in the often sizeable transaction fee.
- Transactions can take longer: With every step of the transaction being overseen by a third party, this can often drag out the transaction process. The third party has set work hours which can lead to an increase in the length of the transaction; you’re constantly having to wait for every step of the transaction to be checked.
- Escrow Service itself could be fake: All too often scammers create their own fake Escrow website — designed to mimic an official one — and convince their victim to use this ‘safer’ option to transact.
- People can be bribed: As with almost everything in the world that gives people a position of power, there is the chance of bribery or corruption.
- Legitimate Escrow agents may be scammers: The news is rife with Escrow agents fraudulently accessing funds held in Escrow Trust accounts for their own purposes.
- People are susceptible to fraudsters, hackers, and phishing: One alarming trend in the U.S. is the increase in wire fraud involving Escrow and house purchases. Hackers will obtain access to the email of an Escrow or Real Estate Agent to monitor the upcoming finalization date for payments. As it draws near, they pretend to be the Escrow or Real Estate agent and email the purchaser, giving them details on where to wire the remainder of their purchase money. Unfortunately, it’s all fake, and the victim has lost a substantial amount of money.
How Natmin addresses these problems
Natmin Pure Escrow is a decentralized Escrow platform, built with Blockchain Technology and utilizing Smart Contracts.
With a decentralized Escrow Service, the third party used to mediate all transactions is the Smart Contract. Which basically means that a program is your third party. There are several reasons why this is the smarter option:
- A program cannot be bribed or decide to take your money for itself.
- You no longer have to wait for business hours to get anything done.
- As all the details are stored on the Blockchain, the transaction itself cannot be hacked or altered in any way. Scammers are unable to trick you into depositing your money into their accounts.
- You’re not having to pay unnecessary extra money for a person; a machine doesn’t need a wage.
Make Natmin Pure Escrow your choice
In this constantly evolving world, there is no excuse not to take advantage of any technological advancements that offer so many benefits and eliminates almost all of the risk. We believe Natmin Pure Escrow is the better choice for all your Escrow needs; it offers a safer, quicker, and cheaper alternative when transacting online.
To find out more about Natmin Pure Escrow, please visit our website: natmin.io.