What is escrow and how does it work?
In: Economics
Another good example of escrow being used was with darkweb markets.
You would purchase something on a marketplace that looked something like eBay. Your money would be transferred to the site until a certain amount of time would pass or you said the product was received. If nothing came up then the money would be sent to the seller. If there were issues then the money would be returned or split ect. Perfect way of doing things.
The biggest scams would be when the sites did “exit scams” on which they held off paying people for a bit, allowing a decent amount of money to build up in escrow. Then they’d close down and leave with the money. In legal stuff there would be more you could do, but in this kind of thing you just had to hope it didn’t happen. A fantastic system when it worked, frustrating when it didn’t
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