Escrow (Blockchain Escrow)
Also known as: Smart Contract Escrow, Trustless Payment Hold, Crypto Escrow System
A trustless mechanism for holding and releasing assets based on predefined conditions in a smart contract.
Escrow in blockchain refers to a smart contract-based mechanism that holds digital assets until specified conditions are met. This eliminates the need for a trusted third party, reducing risk in peer-to-peer transactions. Escrow contracts can be used in token sales, NFT trading, freelance payments, and DeFi lending. Funds are locked in the contract and only released once both parties fulfill their obligations, verified either on-chain or through external oracles. This automated and transparent system enhances security, trust, and fairness in digital agreements.