Understanding Blockchain Escrow: How Vailox Protects Every Trade

What is Blockchain Escrow?

Blockchain escrow is a trustless mechanism that protects both parties in a P2P transaction. Instead of relying on a central authority to hold funds, smart contracts automatically manage the escrow process on the blockchain.

When you trade on Vailox, the seller’s cryptocurrency is locked in a smart contract until both parties confirm the transaction is complete. This eliminates the risk of either party walking away without fulfilling their obligations.

How the Escrow Process Works

1. Order Created: A buyer selects a listing and creates an order
2. Funds Locked: The seller deposits crypto into the escrow smart contract
3. Payment Sent: The buyer sends fiat payment via the agreed method
4. Payment Confirmed: The seller confirms receipt of payment
5. Funds Released: The smart contract automatically releases crypto to the buyer

Why Smart Contracts Are Safer

Traditional escrow services require you to trust a third party with your funds. With blockchain escrow:

• No custody risk: Funds are held by code, not people
• Transparent: Anyone can verify the escrow contract on-chain
• Automatic: Release conditions are enforced by code
• Audited: Our contracts have been security audited

Dispute Resolution

If something goes wrong during a trade, either party can open a dispute. Our admin team reviews the evidence and makes a fair decision. The escrowed funds are released according to the dispute outcome.

Trade with confidence knowing that Vailox’s blockchain escrow has your back.