Escrow

finance · security

Escrow holds funds until agreed conditions are met, using a trusted custodian, multisig, or smart contract logic.

1.concept

Crypto escrow reduces counterparty risk by requiring multiple approvals or specific conditions before funds are released. It can be centralized through a custodian or decentralized through on-chain scripts, multisig, or smart contracts.

2.patterns

Common patterns include n-of-m multisig, HTLCs for conditional swaps, and timelocks that create refund or dispute-resolution windows.

Related terms

Wallet

→

Software or hardware that manages signing credentials, addresses, transactions, and access to blockchain assets.

wallet · security

Transaction

→

A serialized state transition that a blockchain can validate, relay, and include in a block.

blockchain · technical

All terms and definitions may update as the Cryptionary improves.

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