Escrow My Bits is an online platform that offers Bitcoin escrow services with the aim of eliminating the inefficiencies in the current escrow services while simplifying the use of such services.
Through its services, Escrow My Bits will enable cryptocurrency owners to use their cryptocurrencies or make purchases using their cryptocurrencies without having to worry that the other party will not fulfill the sale.
Targeted escrow types
There are three types of escrows that users will have access to on Escrow My Bits. They include:
With this Escrow account, users are required to deposit their funds into a Bitcoin wallet that is controlled by the platform and the funds will be securely stored.
Regular Escrow pegged to fiat value
This escrow is similar to the regular escrow; the only difference is that users deposit their funds into a Bitcoin address that is under the control of Coinapult. Coinapult will then attach the value of the cryptocurrency to a fiat or asset value.
In this escrow, the user’s funds are stored in a secure multi-signature transaction and Escrow My Bits will hold only one key. Therefore, money cannot be moved unless the user and the platform sign to the transaction.
Multi-Signature Escrow pegged to a fiat value
Similar to the Multi-Signature escrow where funds are kept in a secure multi-signature wallet; however, in this case, Omni (mastercoin) or Nubits is what represents the cryptocurrency value.
How does the escrow process on Escrow My Bits work?
There are only three steps on the platform’s cryptocurrency escrow process. The first step is the buyer making a deposit into the escrow. Once both the buyer and seller agree on the terms and conditions of the purchase, the seller ships the item and the buyer confirms receipt of the item. The funds will then be transferred to the seller after the buyer releases the escrow.
If there are any disputes, the platform or another user will act as the arbitrator and decide on which party should receive the funds. The arbitrator can also decide that the funds should be split among the parties when necessary.
For the escrow transactions that are pegged to a fiat or asset value, the value of Bitcoin delivered at the end of the transaction will be the same as the value in the beginning regardless of any exchange rate changes that might have occurred during the escrow.
Why use Escrow My Bits?
Simplified set-up process
The setup process of the cryptocurrency escrow on Escrow My Bits is fast and easy since there are only three easy steps that users will undergo. This, therefore, means that users will not require any technical expertise in order to use Escrow My Bits. Once the account is created, can view their account balances instantly.
To ensure that the services offered on the platform are affordable, the platform only charges a flat escrow fee of 1% of on all the escrow transactions. Alternatively, users have the option of splitting the fee with the other party involved in the transaction.
Funds on Escrow My Bits are secured through storing them in cold storages or with Coinapult for transactions that have a fixed fiat value. This prevents loss of funds through external attacks such as cyber hackings.