There are a lot of exciting projects in the world of blockchain and cryptocurrency to take note of. Descrow is one of those concepts which will certainly be of interest to a lot of people. As its name suggests, the company is all about offering decentralized escrow services. It is certainly true that there are a lot of trust issues when it comes to using cryptocurrencies and other financial assets these days.
Will Descrow be Even Remotely Successful?
It is very difficult to predict whether or not Descrow will ever become a globally used service. Although its business model of offering decentralized escrow services has a lot of merit, it’s not necessarily something people will trust right away. This brings us to the reason why this platform exists in the first place, as there are a lot of trust issues when it comes to finance. This is especially true when cryptocurrencies are involved, mainly because of their non-refundable nature.
Solving this inherent lack of trust will not be easy whatsoever. The Descrow team plans to go about it by introducing a completely trustless system to provide escrow services. It is an interesting approach to the concept of trusting people over the Internet, to say the least. The key features of this Descrow service include the secured collection and storage of funds as well as protection against unforeseen losses.
The big question that comes to mind is whether or not the team can successfully provide decentralized escrow services. After all, the very nature of escrow is that an individual or company acts as a custodian of user funds, which is never an ideal situation. It is evident this project will mainly focus on the ICO market moving forward, as that particular industry can certainly benefit a lot from escrow services.
The team’s mission revolves around making initial coin offerings safer for all participants. They also aim to eliminate any distrust among potential investors for startups embracing this business model. Moreover, they want to integrate the concept of decentralized escrow as a versatile instrument into “all applicable blockchain segments.” It’s an interesting approach, to say the least, but it’s not something people will automatically flock to either.
The system works as follows: once an ICO is completed, the ICO’s team receives a first batch of financing. As they reach new milestones of their roadmap, more funds will be released to them. The financing of a campaign when hitting such a milestone will be done by the investors, who all get to vote on the progress delivered to them. In the long run, this approach can certainly help eliminate most of the scams plaguing the ICO industry right now. It is an interesting idea, although similar (albeit centralized) platforms exist which offer similar functionality.
In the end, Descrow aims to become a decentralized community of devoted participants. Motivating backers to invest in startups while also being actively involved in ensuring companies meet their goals is a pretty intriguing concept. After all, with so many initial coin offerings launching in the past few months, it’s not entirely unsurprising that a few teams have shown their true colors in terms of scamming people. That situation needs to be addressed sooner rather than later.