This article examines the practical limitations of crypto escrow services, emphasizing that while they provide security for payments, they do not guarantee quality or the integrity of the counterparty.Escrow mechanisms secure funds according to agreed rules but cannot ensure the seller's honesty or the product's value.Once funds are released on-chain, they are final and irreversible, unlike traditional payment methods with chargeback options.Disputes require time and evidence, with arbitrators basing decisions on submitted documentation rather than physical inspections.The cost of escrow includes platform fees, network gas, and potential arbitration charges, making it less viable for small transactions.The article highlights common pitfalls like releasing funds prematurely or vague contract terms, which can lead to avoidable losses.

It concludes that escrow is most beneficial for high-value deals with strangers or when legal recourse is limited, advocating for transparent, non-custodial platforms with verifiable smart contracts.