FAQ
What is an Escrow?
An escrow, when built on a smart contract, is a decentralized financial arrangement where a neutral third-party system, governed by pre-set code, holds and regulates payment of funds for two parties in a transaction. It ensures that transactions are executed securely, with funds only being released when agreed-upon conditions within the contract are met. This digital approach provides enhanced trust and transparency, as the terms are immutable once set, and neither party can alter them without consensus.
How does the Nerwo Escrow smart contract work?
The NerwoEscrow smart contract acts as a trusted intermediary between a client and a freelancer. The client deposits funds into the escrow, and these funds are released to the freelancer once the agreed-upon work is completed. If there's a dispute, an arbitrator can intervene to resolve the issue.
How are disputes resolved within the escrow system?
Disputes are resolved by the arbitrator. Both the client and the freelancer can present their case, and the arbitrator makes a decision based on the evidence. Once the decision is made, the smart contract executes the arbitrator's decision.
What is the role of the arbitrator in the escrow process?
The arbitrator acts as a neutral third party to resolve disputes between the client and the freelancer. They have the authority to decide how the funds in the escrow should be distributed based on the evidence provided by both parties.
What fees are associated with using the Nerwo Escrow smart contract?
There is a small fee of 5.5% associated with using the NerwoEscrow smart contract. Specific fee details should be checked on the Nerwo platform.
How long does it take for funds to be released from the escrow?
Funds are released from the escrow once the freelancer completes the work and the client approves it. If there's a dispute, the release might be delayed until the arbitrator resolves the issue.
Is there a limit to the amount of funds that can be held in the escrow?
No, there isn't a specific limit set by the smart contract itself.
How can I trust that the escrow system is secure and reliable?
While every digital system has inherent risks, the combination of blockchain technology, smart contract automation, transparency, and rigorous security measures makes the NerwoEscrow system a secure and reliable choice for facilitating transactions between clients and freelancers.
What happens if the freelancer does not deliver the work as agreed?
If the freelancer fails to deliver, the client can raise a dispute. The arbitrator will then step in to resolve the issue and decide on the distribution of funds.
Can the Client withdraw funds after depositing them into the escrow?
No, once the funds are deposited, they are locked in the escrow until the work is completed or a dispute is resolved.
Can Nerwo, as the platform that developed the smart contract, withdraw the funds?
No, Nerwo cannot access or withdraw funds from the escrow. The funds are controlled by the smart contract and can only be released based on the contract's conditions.
Last updated