P2P Escrow: Enhancing Security and Trust in Online Transactions

3 min readMar 21, 2023

Online transactions have become an essential part of our daily lives in the digital age. However, the anonymity and lack of trust associated with online transactions can sometimes cause people to feel uneasy. P2P (peer-to-peer) escrow services come into play here.

P2P escrow is a system that offers a safe and dependable platform for online transactions. It acts as a third-party intermediary between the buyer and seller, ensuring that the transaction goes smoothly and without fraud or scam.

P2P escrow services work by holding the buyer’s funds in escrow until the seller delivers the agreed-upon product or service. The funds are released to the seller once the buyer confirms that the product or service is as expected. This adds a layer of protection for both parties, as the buyer is assured of receiving the product or service for which they paid, and the seller is assured of receiving payment for the product or service provided.

Let’s explore some of the pros and cons of a P2P escrow service:


  1. Increased Security: P2P escrow services provide a secure platform for online transactions, reducing the risk of fraud or scams. The buyer’s funds are held in escrow until the seller has delivered the product or service as agreed, ensuring that both parties fulfill their obligations.
  2. Improved Trust: P2P escrow services create a level of trust between buyers and sellers, which is essential for successful online transactions. The escrow service acts as a neutral third-party, ensuring that the transaction is completed fairly and that both parties are protected.
  3. Dispute Resolution: P2P escrow services offer a dispute resolution mechanism in case of any issues or disputes. The escrow service acts as a mediator and helps resolve the dispute between the buyer and the seller, reducing the risk of the transaction falling apart.


  1. Escrow Fees: P2P escrow services charge fees for their services, which can sometimes be relatively high. This can increase the cost of the transaction for both the buyer and the seller.
  2. Limited Availability: P2P escrow services are not available for all types of transactions, and they may not be available in all countries. This can limit their usefulness in certain situations.
  3. Slow Processing Times: P2P escrow services can sometimes be slow to process transactions, especially in cases where there are disputes or issues that need to be resolved. This can be frustrating for both parties, especially if there is a time-sensitive element to the transaction.


P2P escrow services provide a safe and reliable platform for online transactions. They add an extra layer of security for both parties, ensuring that the transaction goes smoothly and without any fraud or scam.
As the popularity of online transactions grows, P2P escrow services will play an increasingly important role in enhancing security and trust in online transactions.

While peer-to-peer escrow services have many advantages, they also have some drawbacks that must be considered. Before deciding whether or not to use P2P escrow services for a specific transaction, it is critical to weigh the benefits and drawbacks.

However, the benefits of increased security, increased trust, and dispute resolution make P2P escrow services a valuable tool for online transactions in general.




DeFiX Solutions is an open-source P2P protocol that wants to build a decentralized trading platform that is secured by escrow.