Having a domain name is the first step for running a website. That is why everyone needs to find a way to buy a suitable domain name. One of the easiest methods of buying a domain is using a domain name escrow service. Let us see what this service is and how it can help you make a better purchase.
What is a Domain Name Escrow?
Online Escrow is a service acting as a third-party agent that makes online transactions more secure for both parties. Different websites offer this regulated and licensed service that allows customers and sellers of different goods to have a more secure trade. One of the forms that people can use this online service is buying and selling domains.
Whether you are a domain buyer or want to sell a website domain name, you can trust this service as a safe and secure way of transferring money and receiving the purchased domain. The escrow services are the trusted partners for people who do not know each other, so they trust this service to protect their online trades.
How Does It Work?
Buying or selling with an escrow service is so easy. First, the buyer and the seller should sign up on the platform that offers this service to create their escrow accounts. After connecting to each other, they agree on a set of terms and conditions relating to the price, domain information, and further details. The agreement is made on the website, and both parties accept its terms. Then, the buyer submits the payment to the website and waits until the seller delivers all the information based on the agreement. After the seller transfers the domain to the escrow website, the buyer checks it and confirms everything. In the last step, the website releases the money and transfers it to the seller’s account.
Generally, the escrow websites receive a cheap escrow service fee from both sides for this secure and protected escrow transaction.
What Are the Benefits of Domain Name Escrow?
This method of buying and selling a domain via escrow services is beneficial to both the seller and the buyer. Here are some of the Escrow benefits for both parties:
Security: Escrow service protects the sellers from the risk of selling valuable goods without receiving money. On the other hand, it also protects the buyer from paying for goods without delivering them. Furthermore, this service will not let anyone access the credit card information of the other person. Therefore, buying something from someone you do not know is safer with this service.
Easy access: The buyers and sellers can easily create an account on this platform and start domain trading.
Online support: Platforms that offer escrow services have 24/7 online support. In case of any question or problem, both parties can solve the issues in a few minutes.
Low escrow fee: Although escrow service has a fee, it is not that much to concern.
Convenience: Buyers can use different payment methods, including PayPal, Visa Card, MasterCard, etc.
What Are the Alternatives to Escrow Services?
Domain name escrow is an effective and easy service for a secure domain trade. But there are still other platforms to buy and sell domains that are as practical as this service and somehow more secure. One of them is Domchain, which works on blockchains. This platform uses smart contracts technology as a safe agreement between two parties. Smart contracts are programs on blockchain that run when predetermined conditions are met. Therefore, an action takes place automatically without the need for a third party. It is a simple statement that both parties agree with, executed by computers.
The process is like the simple escrow domain name holding; people sign up on this website, create their escrow accounts, and start domain trading. Using smart contracts as the agreement between two parties makes this method much easier and transparent; because every action operates after an “if statement” runs properly. For example, releasing the money to pay the seller will be done when the seller transfers the domain to the buyer. Everything depends on what the two parties have agreed. However, the process is automatic, which makes this platform more secure than other methods.
Conclusion
When it comes to doing anything on the internet, nothing is more important than security, especially when you want to buy or trade something from someone you do not know. Knowing someone as the third party that both buyer and seller can trust is essential. Platforms that offer escrow services are now acting like trusted agents between two parties.
Furthermore, the smart contract technology on the blockchain has even made domain name escrow more secure and straightforward than before. If you are looking for an online domain trading platform, you can always count on Domchain security and safety.