What is Escrow?

An escrow is a contractual arrangement in which an intermediary receives and disburses funds or assets on behalf of the primary transacting parties based on predetermined conditions agreed to by the transacting parties. Traditionally, the intermediary is a trusted third-party arbitrator, but with the advent of blockchain technology, this escrow service can now be automated using algorithmically-enforced rules based on smart contracts. The automation of escrow holds massive potential implications across a broad range of industries.