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How does escrow work?
How does escrow work?
Max Franke avatar
Written by Max Franke
Updated over a week ago

Two parties

  • Client (paying for a good or service)

  • Contractor (expecting to be paid)

Escrow process

The escrow process works in the following way.

  1. Agreement: The client and contractor enter into a contractual agreement.

  2. Invoicing & Escrow: The contractor creates and sends an invoice to the client, asking them to deposit the funds due on the invoice into the escrow smart contract.

  3. Delivery/Fulfillment: The contractor commences work, and notifies the client when the job is done.

  4. Payment: If the client is satisfied with the job, they release the funds to the contractor.

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