Traditionally, escrows use a third-party, which is responsible for making sure that both parties proceed with the transaction. The buyer deposits an agreed amount of money in the escrow and demands the service to be done in an agreed time. The seller is notified of the deal and the period in which the service needs to be complete. Thus, the third party is responsible for completing the service within the negotiated time, for the negotiated charge, at an acceptable quality.
During the entire service period, it is the responsibility of the third-party to ensure the security of the money. If the service done is approved by the buyer, the escrow will pay out the deposited money to the seller keeping a pre-decided percentage of the money as an escrow fee charge. Usually, the circumstances that use escrow include online transactions, real estate, intellectual property, law, mergers, and acquisitions, among others. The transactions are more secure by keeping the payment in an escrow account and will only be released once all terms of the agreement are met, as seen by the third party. Escrows are most useful when there is a large amount of money involved, and there is a large number of obligations to fulfill before payment is released.
Virie Market adapted this idea in securing transactions except that it doesn’t use any third party. This is what makes it unique and powerful. This mechanism is based entirely on the economic principle, that to be able to maximize profits, everybody has to play fair. Since Virie's platform runs completely through a peer-to-peer network system, the two parties doing the transactions in the escrow will have to make additional deposits. That will be forfeited if one of them does not fulfill their part of the agreement. Processing transactions in Virie’s escrow is quick and easy. The users just have to click the button that says, “begin a purchase” and fill up the simple form, click submit, and that’s it! This is the most convenient way of processing transactions in an escrow system, and cost-efficient too. It saves you from the hassle of contacting a third-party and paying for a large fee.
As it is in the usual escrow, transactions in Virie’s escrow are fully secure. The pledges deposited by both parties guarantee that both parties will complete the agreement because if they don’t, they will lose it. While the transactions are still processing, these pledges are kept in the blockchain storage, which makes it even more secure. The anonymity of the users remains as there is not a need to provide any personal information. The only information needed is the alias or the safe account number, which is unique to every user. With the added layer of security using modern cryptography, all transactions within the Virie platform are untraceable and unlinkable, meaning, no one will ever know who sends the transaction or who it was sent to. Download it here to try it yourself.