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Escrow, step by step

Escrow is the mechanism that makes a trade between strangers possible. Your payment sits in a held contract between the moment you pay and the moment you confirm the order arrived. Neither side can simply run off with it.

The flow

  1. You fund the order; the coins enter escrow rather than going straight to the vendor.
  2. The vendor ships.
  3. You receive the order and confirm receipt.
  4. Escrow releases the funds to the vendor.

If something goes wrong before you confirm, the funds are still in escrow, which is what gives a dispute its teeth. A multisig arrangement means no single party, not even the market, can move the funds unilaterally.

The protection exists only until you confirm receipt. Confirming before the order truly arrives releases the money and ends your recourse. See finalising early.

Last reviewed 2026-07-15.