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A financial arrangement where a third party holds and regulates payment of the funds.

Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction. The funds or assets are held by the escrow service until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Cryptocurrency escrow services exist to add an extra layer of protection between buyers and sellers during transactions.


Bob and Alice agree to use a crypto escrow service when Bob agrees to buy 1 Bitcoin from Alice.


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