An escrow protocol is a mechanism designed to facilitate secure transactions between parties in a blockchain environment. It involves a neutral third party or smart contract that temporarily holds assets (like cryptocurrencies or tokens) until specific conditions are met.During a typical transaction, the buyer sends the payment to the escrow service instead of directly to the seller. The escrow holds the funds safely until the seller has fulfilled their part of the agreement, such as delivering a product or service. Once the buyer confirms receipt or satisfaction, the escrow releases the funds to the seller.This process helps in building trust, as it safeguards both parties. If a dispute arises, the escrow service can act as a mediator, ensuring that the assets are released fairly based on the agreed-upon terms. Smart contracts automate this process, removing the need for human intermediaries and reducing the potential for fraud.Overall, escrow protocols enhance security, transparency, and efficiency in transactions, making them appealing for users looking to engage in agreements where trust might be a concern.