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Global crypto payment service Escrypto has been getting licenses to operate in 3 continents and will launch later this year.
With the innovative capabilities afforded by the Escrypto platform, financial regulators have approved its use in a comprehensive list of territories, including the US, Canada, EU, Israel and many more locations.
The successful licensing of Escrypto on such a broad scale represents a huge step forward, not just for the Miami-based company but for crypto payment services in general.
With Escrypto bringing secure, easy-to-use escrow services to the crypto space, decentralized finance has taken another significant step toward the mainstream.
Escrow in the Crypto Landscape
While cryptocurrencies may offer any number of advantages to users — increased security, privacy, and transparency to name but a few, they also come with a distinct drawback. Cryptocurrency transactions can’t be reversed.
In the event that buyer is unhappy with a product or service that have paid for, there is no method by which buyer can demand his money back. Once have paid for something with crypto — even if have paid the wrong person by mistake — that crypto is gone.
In order to get money returned, buyer is entirely reliant upon the good nature of the individual or business have paid to give a refund — and if they aren’t prepared to offer one, options are severely limited.
This characteristic is, unfortunately, inherent to blockchain systems, with there being no central governing body that customers can approach to make a complaint if there has been any mistake or failure in a transaction.
To resolve this, Escrypto is bringing the reliability and security of traditional escrow methodology to the crypto landscape.
The Escrypto Solution
In traditional escrow, a third party with no vested interests or connections to the transaction parties is brought in to act as an arbiter and maintain control of any payments made. Only when all parties involved are satisfied that the transaction can be completed are the payment funds released to the seller.
When it comes to crypto transactions, the most effective way to provide escrow security is to use a multi-signature escrow wallet — also known as a ‘multisig’.
Although the function of a multisig wallet is the same as a traditional escrow service, the manner in which it performs this task differs in a profound way. When using a multisig, no funds are held by a third party.
Instead, the multisig serves as an agreement that the funds will not be transferred until any two of the three parties involved (buyer, the seller, and the escrow provider) have signed off that the transaction has gone ahead satisfactorily.
Assuming that buyer is satisfied with the product or service purchased, both buyer and the seller use your own personal crypto ‘keys’ to authorize the transaction.
With the ‘two of three’ authorization condition now fulfilled, the payment held in the multisig wallet is released to the seller.
The Human Element
As effective as blockchain escrow may be, there are still reasons why transaction parties need to be careful. In the event that there are issues or complications with a transaction, the escrow provider will serve as the adjudicator and ‘third vote’ to decide the veracity of the transaction.
With the manner in which these disputes are resolved varying widely (depending on the escrow service provider chosen), it’s vital that crypto transaction partners engage a reputable and licensed escrow provider.
In this respect, blockchain escrows are no different from traditional ones — as automated and safe as the transaction process may be, an escrow provider’s reputation still matters.
It’s here where Escrypto is hoping to make a profound difference. Employing extensive user-verification systems such as KYC, KYB, and AML, Escrypto ensures that all transactions are fully vetted and compliant.
Further to this, the platform utilizes institutional-grade vaults that require both a public and a private key to access as well as leveraging MPC wallet technology. With MPC technology allowing individuals to evaluate transaction data without having to reveal their data to anyone else.
Escrypto offers escrow payments solutions that are built around unparalleled security and reliability.
Crypto Payments at Your Fingertips
More than just security, however, Escrypto aims to make blockchain escrow as intuitive and user-friendly as possible.
One of the other unfortunate characteristics of blockchain technology is that it tends to confuse people remarkably easily, especially newcomers to the field.
While nodes and permissioned ledgers may well be standard terminology in financial markets, they aren’t necessarily the most inviting phrases to the wider public.
To address this issue and widen the mass appeal of blockchain technology in general, Escrypto has created an entire platform of crypto payment services that require absolutely no technical knowledge to use.
By employing innovative software and smart contracts, Escrypto says it has effectively removed any complications from the process, allowing people to engage in crypto payments with the same ease and confidence they experience when using traditional centralized payment platforms.