An escrow wallet is a type of digital wallet used to securely hold funds during a transaction between two parties. It acts as a neutral third party that ensures both buyers and sellers fulfill their obligations before the funds are released.When a transaction is initiated, the buyer sends the cryptocurrency to the escrow wallet instead of directly to the seller. The funds remain secured in this wallet until all agreed-upon conditions are met. For instance, this might involve the seller delivering a product or service as promised. Once the conditions are satisfied, the escrow service releases the funds to the seller. If there’s a dispute, the escrow can help mediate and determine how to resolve the situation, potentially refunding the buyer if necessary.Using an escrow wallet adds a layer of trust to transactions, making it an attractive option for those dealing with unknown parties. It helps protect both sides and reduces the risk of fraud.