<p>There are certain sorts of escrow that are very difficult to implement without a trusted party. For example, an escrow system that only sends along the payment when the seller has provided proof of shipping would be impossible without a trusted third party.</p>

<p>However, if we change the escrow system a little bit, then we can implement it without a third party. For example, suppose we say that the buyer and the seller merely need to agree about where the bitcoins are sent. <em>That</em> is something that a decentralized network can check for.</p>

CC BY-SA 3.0
2013-04-03T23:19:34.723Z
2013-04-03T23:19:34.723Z
Nick ODell
<p>We can use Clearcoin type mechanisms for this . 
ClearCoin is an escrow-type of service that allows safer payment by securely holding coins in escrow until both buyer and seller are satisfied.
Sometimes there is a risk that a buyer will be unhappy with a purchase but no recourse is possible because Bitcoin transactions are not reversible. An escrow allows the buyer to send payment to an intermediary and release the funds only at such time the buyer is satisfied with the seller's level of service.</p>

<p>More details about Clearcoin can be found at <a href="https://en.bitcoin.it/wiki/ClearCoin" rel="nofollow">this</a> link.</p>

CC BY-SA 3.0
2014-01-14T17:54:02.343Z
2014-01-14T17:54:02.343Z
tusharmakkar08
<p>The <a href="http://bitcoin.org/bitcoin.pdf" rel="noreferrer">original Nakamoto paper</a> states</p>

<blockquote>
  <p>routine escrow mechanisms could easily be implemented to protect buyers</p>
</blockquote>

<p>What is meant by "routine escrow mechanisms"?</p>

CC BY-SA 3.0
2013-04-03T21:51:45.580Z
Is this what you're talking about: https://en.bitcoin.it/wiki/Contracts#Example_2:_Escrow_and_dispute_mediation
lurf jurv
CC BY-SA 3.0
2015-08-27T03:22:33.280Z
@lurfjurv, Not the asker is talking about, it is what Satoshi Nakamoto is talking about
Green
<escrow>
What are "routine escrow mechanisms"?
Randomblue
# What are "routine escrow mechanisms"?

(Asked by: username_0 on 2013-04-03)

The [original Nakamoto paper](http://bitcoin.org/bitcoin.pdf) states

> routine escrow mechanisms could easily be implemented to protect buyers

What is meant by "routine escrow mechanisms"?

**Tags:** escrow

> **Comments:**
> **username_1**: Is this what you're talking about: https://en.bitcoin.it/wiki/Contracts#Example_2:_Escrow_and_dispute_mediation  
> **username_2**: @lurfjurv, Not the asker is talking about, it is what Satoshi Nakamoto is talking about  

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## 2 answers

### Answer by username_3 on 2013-04-03. Score: 1 | Accepted answer

There are certain sorts of escrow that are very difficult to implement without a trusted party. For example, an escrow system that only sends along the payment when the seller has provided proof of shipping would be impossible without a trusted third party.

However, if we change the escrow system a little bit, then we can implement it without a third party. For example, suppose we say that the buyer and the seller merely need to agree about where the bitcoins are sent. *That* is something that a decentralized network can check for.


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### Answer by username_4 on 2014-01-14. Score: 0

We can use Clearcoin type mechanisms for this .
ClearCoin is an escrow-type of service that allows safer payment by securely holding coins in escrow until both buyer and seller are satisfied.
Sometimes there is a risk that a buyer will be unhappy with a purchase but no recourse is possible because Bitcoin transactions are not reversible. An escrow allows the buyer to send payment to an intermediary and release the funds only at such time the buyer is satisfied with the seller's level of service.

More details about Clearcoin can be found at [this](https://en.bitcoin.it/wiki/ClearCoin) link.


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