Updated: Nov 1, 2019
Online buying and selling have gained massive popularity over recent years. Much of this popularity can be attributed to online marketplace giants such as Amazon, eBay, Shopify, etc. Online shopping platforms have become a saving grace for people who do not have time to go to a brick and mortar types of shopping places and malls. They find it outrageously convenient to just grab their phone or laptop to find the products that they need or want, and just like that. They were able to shop at the convenience of their own home. Many businesses have also shifted to online platforms to keep up with the trend. But much with the thrill of the chase for convenience, and profits come online scams too. Through the years, we’ve seen reports about buyers or sellers pretending to be legit when they were not. We have not seen any perfect buyer and seller relationship so, the question of how to keep buying and selling online safe and guaranteed is always at the back of everyone’s mind.
The answer is the escrow system. While it might be a long process to go through an escrow system when buying and selling, it is a great way to guarantee transactions and keep them safe. But what is an escrow? Escrow is not a new concept that has just been created during the tech era. The idea has been used since the 16th century, where an enlisted trusted party holds the monetary instrument while the exchange in goods or properties took place. Once the transactions were completed, a scroll containing the deeds were handed over. This is pretty much the same idea that still applies both in the online exchanges and physical exchanges of properties today.
Escrow is a simple yet effective mechanism to secure payments between buyers and sellers. Typically, a third party holds the money until both the buyer and the seller fulfills their obligations. Both parties need to trust the third party for the transaction to be successful, and this can sometimes cause some issues among participants. With this in mind, the developers of the Virie Market created an elegant mechanism for a secure escrow with no third party needed. As Virie Market is a peer to peer network, both parties do not need to have a middleman to process a transaction, and keep it safe and guaranteed. Both of them will have to make additional deposits, which they will forfeit should any of them break the rules. This mechanism is entirely based on the economic principle that to make profits, everybody has to play fair. Escrow is indeed a safe and guaranteed way to do online buying and selling, which is made even better by Virie Market eliminating the need for a third party.