What is escrow, and why it makes trading safe

Escrow is a simple idea that makes trading with strangers safe: a neutral third party holds the payment until everyone has done what they promised.

Without escrow

Someone has to go first — and whoever goes first takes all the risk. That's how scams happen.

With escrow on CryptoLarz

1. The buyer pays into escrow. The seller can see the money is secured, but can't take it.
2. The seller delivers the digital product.
3. The buyer confirms delivery, and only then is the payment released.
4. If there's a problem, a dispute decides where the money goes — it never just vanishes.

This is the backbone of safe P2P trading.