Unicrow has taken to Twitter to announce the launch of its Escrow platform on Arbitrum. The launch of the platform ‘unstoppable’ has been hailed by Unicrow as a historic moment in the crypto industry.
The ultimate aim is to minimize the trust requirements of third parties and leverage immutable smart contracts in the upcoming Web3 sphere. Implementations by the Escrow platform of Unicrow highlight that what comes next – Web3 – can help serve real-world commerce even without the involvement of anyone else except for peers on the network.
Unicrow allows two parties to settle the value of goods, trades, or services with minimal trust in any 3rd party. This goes to the extent that their involvement is barely considered to be necessary. Unicrow is a censorship-resistant and permissionless escrow protocol that functions on the simple idea of clearing payments through an escrow account.
Known to be one of the first trust-minimized escrow protocols, Unicrow introduces a challenge in the name of escrow with a custom-defined challenge period. There is a time window within which the trade takes place, and then the payment is settled. It can simultaneously happen at the end of the period, provided the task has been done until then.
Assuming there is a dispute a need to be dealt with, then there is a provision for an arbitrator to enter and resolve the dispute. The challenge period considers the margin for the involvement of an arbitrator as well. If there is no 3rd party arbitration, then the same is offered by the mechanism to resolve the dispute.
The immutability of the contract plays a very important role. It eliminates the need for 3rd party or governance to move and freeze funds. Thereby giving more power to a recipient who is intended to be on the other side of the end. Per the announcement, there is no black list, or even a white list, for tokens and addresses.
Trades can be facilitated by any real-world commerce platforms or marketplaces, and OTC houses. Arbitrators will be involved if the need arises. They, however, will have no power over the custody of funds in order to minimize security and exposure to regulation.
Immutability and the mechanism of the challenge period, therefore, form two of the most important pillars of Unicrow’s escrow platform. It is easier to use and has higher efficiency than MPC escrow.
What’s more in the store for the users is the offering of reputation that can only be built with each successful trade. This way, it ensures that genuine trades are duly rewarded as compared to those that are not genuine. While a successful trade will build a reputation, unsuccessful trades or disputes will hurt the reputation and incentivize the involved parties to strike a resolution at the earliest.
Web3 is likely to serve the world in the times to come. Operations like these ensure that the basic establishment is strong for the future.