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OK, so what part of that needs a smart contract and blockchain rather than a cron job?

• dragontamer 8y ago
  Well, for one, Bob can see the BTC or Ethereum in the wallet due to the public blockchain. Bob can be assured that Alice has indeed sent the funds. Furthermore, the Escrow service isn't actually holding any money. If you were to implement Escrow using today's banking technology, you have to give Escrow the money, and then Escrow gives the money to Bob (or Alice) pending the results of the automated service. Ex: You can't implement an escrow service using ACH... not at least... without actually taking the money. But with Bitcoin or Ethereum, you can implement an escrow WITHOUT taking any money at all. Escrow can only give the money to Bob (or give it to Alice), provable through encryption. In effect: Blockchain provides a way to divide the responsibility and prove it through cryptography. The Blockchain Escrow NEVER has access to the funds, throughout the entire transaction. And therefore, it is easier to bootstrap Escrow's reputation. True, we can use well-trusted banks and courts to handle these transactions. Trusted Escrow services do exist. But my point is that Blockchain could make it cheaper and easier to do. ---------- I mean, provided that Bitcoin actually can stabilize, among other things. There are a lot of reasons to not do this with BTC or Ethereum, primarily because of the gross variance in price. But still, its a nifty concept. Its not "change the world" level, but it is certainly a technological advancement in my eyes. Something that could allow new businesses (with lower-trust models) to accomplish things that previously took a lot of trust, and a lot of effort. (IE: Escrow services).