Before exploring different use cases specifically, let us have a look at the related terminologies and most important aspects of a crypto wallet and escrow service.
What is a crypto wallet and how is it different from the regular ones?
A crypto wallet is not at all different from your real-world wallet. Therefore, in order to understand the concept and its working, I advise you to think about how you store your fiat currency. Most probably, in a leather wallet. Going deeper into the perspective, we prefer keeping more cash in the bank and less in our leather wallet.Same is the case with cryptocurrencies.
One of the major differences perks is that a digital currency could be stored in a wallet in huge amounts. So while you are carrying a digital wallet, you could carry as much currency as possible.
How does HighBank’s crypto wallet work?
When the currency is digital, it cannot be stored in a leather wallet, as you must have understood until now. Therefore, all cryptocurrencies exist in intangible form. It is more of a ‘concept’ and ‘value’ that is shared between multiple participants of the network. The more the value of your wallet, the wealthier you are and hence, the more veto power you enjoy (let’s leave that discussion for a while).
Basically, every user on the network is assigned an encrypted address which serves as your identity and refers directly to your wallet on the network. Suppose you happen to be a local business in the United States and your client in a remote Sri Lankan village wants to buy something from you. For the sake of discussion, let’s assume that you both have BTC wallets. All he needs to do is transfer the required amount to your BTC wallet by simply mentioning your address in the recipient section. That’s all.
Since a wallet address is visible on the screen in a long encrypted string, newbies are often confused while giving this information to any 3rd person. But please note that a wallet address is merely your bank account number on the network and nobody can cause any harm even if you put it publicly on your website. The only thing (that you might want to be careful about in your use case) is that if anyone tries to fetch the transaction history related to your wallet address, it’s a piece of cake!
What is escrow?
Basically, it happens to be a payment method. You must have heard about advance payment on delivery and how both of these effect clients and customers, respectively. Well, Escrow encourages a trustful relationship between two parties and diminishes the probability of fraud.
If you look at it typically, a company offering Escrow services is nothing more than a middleman. But since a middleman holds the maximum important in any trade, it has to be trustworthy for both parties.
You must already be aware of this term and how it works if you are a freelancer. But what’s more exciting about HighBank is that we follow a cryptocurrency business model. We also have a fully functional API (unlike most of our competitors) that you could integrate right on your website and define your own terms of acceptance. An automated system will collect the funds from your customers and you will receive the funds as soon as you offer the service. In order to enhance the efficiency of this system, we will use AI to ensure that there are no false triggers involved anywhere in the process.
How do our wallet and escrow offer feasibility?
We offer a generic solution that could be used by any type of business, operating in any region on any scale. Both wallet and escrow services work hand in hand to provide a complete procedure and automate things for you and your customers.
Pro tip: If you want to get the maximum out of HighBank, we encourage you to use the payment gateway system together with Escrow and wallet.
Let’s have a look at a use case where an e-commerce site and a customer enter a trade agreement in a blockchain-based environment.
Suppose that you have just found the best copywriting service provider and fortunately, he accepts payments in cryptocurrencies as well. That makes things easier for you because you do not have to waste your money in terms of transaction fee and you do not even have to worry about currency conversion fee if you are based in another country.
To make things easier for you, the site owner has provided multiple wallet addresses belonging to the HighBank platform and depending on the currency you want to pay in, you could choose any of the wallet addresses.
As a customer, all you need to do is to open up your HighBank dashboard and hover to the wallet section. From there, you got to hit the ‘transaction’ tab and then ‘make a transaction’.
The dashboard will open up a modal box for you where you can select whether to send or receive the payment. Of course, you have to select the second option.
Two form fields will open in front of you. Just enter the store’s wallet address for the currency in which you are making the payment and the total amount you want to transfer.
Once that is done, your payment will be put in an Escrow service and will only be released once the writer delivers your work. Please note that both parties will be notified of all the events involved in this process.
Depending on the use case, you are free to implement any extra features and customization that might be relevant to your business model. What’s more exciting is that if you look at it from a broader perspective, you could create an entire business model on top of the HighBank ecosystem. For instance, the combination of a payment gateway, a crypto wallet, and an Escrow service lay the ground for launching a full-fledged freelance marketplace.