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DN.Domains facilitates Bitcoin escrow for domain transactions with fees as low as 0.5%

Finally, a bitcoin based escrow service for domainers (Beta)

Bitcoin is growing strong and so is the need for a bitcoin escrow for the bitcoin savvy domainers’ needs. It removes the clutter and delays associated with fiat transactions and the banking systems cross borders.

DN.Domains in association with Bitrated.com is facilitating a bitcoin based escrow service for domain transactions. The fee is a negligible 0.5% (Example, for 50 USD fee is 0.25 USD; for 1000 it is 5, and for 10000 USD fee is 50 USD) This is lowest in the industry!

Prerequisites for buyer and seller:

1. Buyer and seller should have working knowledge of Bitcoins and should have used bitcoin wallets in the past. If you have not used it, just google it up or ask some friends who are into bitcoins. It is very simple. No rocket science!

Create a bitcoin wallet, do a couple of bitcoin trades. Don’t try this first for domain escrow.

2. DN.Domains works as an arbitrator between the buyer and seller and both parties trust us should there be a need for dispute resolution. The system works in such a way that two people (buyer & arbitrator or seller & arbitrator) has the power to complete a transaction in case of a dispute. If there is no dispute, buyer & seller can complete the transaction. Arbitrator is not involved then.

Steps to follow for the buyer:

1) Open an account in Bitrated.com if you do not already have.

2) Fill in your email ID, your other bitcoin wallet address, check roles as buyer and seller in respective places. This is in Settings page. “Display my email address to users I trade with” should be checked.

3) Keep safe your user name, password, monophasic codes.

4) Click here

5) A window like this will open. Fill in as described below and click on create trade.

bitrated domain escrow

6) Seller and DN.Domains will get the alert and will verify and agree with the trade.

7) Bitrated will open a multisig wallet to send BTC in and you can then transfer the BTC to this wallet (Not to seller’s wallet in any case).

8) Seller will see the funds has arrived in the multisig wallet and will initiate the domain transfer as per instructions given in the Trade. No other instruction which goes against what is mentioned in the Trade will be entertained.

9) When you get the domain transferred, check for whois accuracy and ensure the domain is locked at your end.

10) If you are satisfied with the trade, mark it as a successful transaction and the seller would have got his bitcoins with no intervention required by us.

11) Rate us in Bitrated.

Please note these facts: Always buyer starts a transaction. The fees is adjusted in buyer’s bits, so always add 0.5% extra to the agreed bits for the domain.

Steps to follow for the seller:

1) Open an account in Bitrated.com if you do not already have. You should use your whois email ID as buyer is initiating a trade with that email ID ONLY.

2) Fill in your email ID, your other bitcoin wallet address, check roles as buyer and seller in respective places.  This is in Settings page. “Display my email address to users I trade with” should be checked.

3) Keep safe your user name, password, monophasic codes.

4) Once buyer initiates a trade, you will get the alert and details of the trade. Confirm it.

5) Wait for buyer to load the BTC to the multisignature wallet.

6) Transfer/push the domain as per the instruction entered by the buyer in the Trade. Do not entertain any other instructions which goes against what is mentioned in the Trade.

7) Mark the trade as complete if you are satisfied. If the buyer also confirms, you will be able to withdraw the BTC without any intervention from the arbitrator.

8) Rate us in Bitrated.

Please note these facts: Always buyer starts a transaction. The fees is adjusted in buyer’s bits, so please take this into consideration while deciding domain price.

About Bitrated:

Bitrated offers a multisig wallet. A multisig wallet is a shared wallet that requires a certain amount of signatures in order to transfer funds from it. For example, the wallet can be shared by 3 people and when any 2 out of the 3 decide to send the money, the order is executed.

Bitrated is basically a platform which introduces buyers and sellers with arbitrators. It then creates a multisig wallet shared by all three parties, that requires only two  signatures to release the funds. So if both seller and buyer agree that the transaction is complete the arbitrator’s signature isn’t needed. If the seller or the buyer believe a dispute needs to be made then the arbitrator’s job is to decide where to send the money to.

The major upside of this platform is that you’re not sending your money to strangers, you’re just depositing it inside a multisig wallet which you have certain control over. Bitrated itself, doesn’t hold the private key to the wallet and cannot steal the funds.

How does the payment system works?

The Bitrated payment system allows to make reversible e-commerce transactions using multi-signature smart contracts.

The buyer and seller nominate, ahead of time, a trust agent to act as an arbiter for their transaction. The buyer then makes the payment to a 2-of-3 multi-signature address, which is locked until two of the parties agree to release it.

The payment process consists of of four steps:

  1. After agreeing on a contract and a trust agent, a new trade is created by the buyer. [screenshot]
  2. All parties are required to review & authorize their participation in the trade. [screenshot]
  3. The buyer is requested to make the payment into the multi-signature address. The seller can verify that the payment is secured in the multi-signature and provides the goods/service to the buyer. [screenshot]
  4. The payment is now locked for the duration of the trade, until two of the three parties – buyer, seller and trust agent – agree to release it. [screenshots]This can go in two ways:
    • When everything goes well, the buyer & seller agree and release the payment to the control of the seller. No intervention by the trust agent is required in this case.
    • When a dispute arises, the trust agent can intervene, review the case and decide which party to side with — either refunding the payment to the buyer, or releasing it to the seller.

Are funds held in escrow?

No. Trust agents have a voting power that allows them to tip the outcome in favor of either the buyer or the seller, but does not allow them to take funds to themselves or use them in any other way without the permission of either the buyer or the seller.

This means that trust agents act as arbiters for the transactions, but do not operate an escrow account.

Can’t trust agent defraud me? How do I know the trust agent is trustworthy?

While trust agent cannot control funds on their own, they could collude with the other party of the transaction to defraud users.

Basically, instead of having complete trust in one person (as in the case of escrow, where the escrow provider is trusted not to “run away” with the funds, or in the case of standard payments, where the seller is trusted to provide the product/service after the payment is made), the Bitrated payment system ensures that you’re protected as long as one of the parties is honest and does not conspire with the other party to defraud you.

In addition, our reputation management system can help you determine who is trustworthy. We recommend only using trust agents that have a well-known Internet persona (and have a lot to lose by acting dishonestly), a positive rating history and a high Bitrating score.

It is also worth mentioning that trust agents can more easily build their reputation compared to sellers, as there are less of them and they participate in more trades. In other words, it should be easier to find trustworthy trust agents than it is to find trustworthy sellers.

Disclaimer: We are only arbitrating the transaction. Though we will take extreme care, we should not be held liable for any kind of loss or damage that may incur to you due to this transaction. You are expected to take adequate care and precaution while doing the transaction. We will be glad to assist you with any kind of proofs, screenshots, or emails to strengthen your position as the case may be.

Initiate a domain transaction now as a buyer

Have Questions?

Jijo Pappachan

Jijo Pappachan is a Chinese Domain names investor, trader, broker, author, and blogger. He started domaining in 2015 and made it big during the surge that time. He has sold more than 1000 domains. He is part of DNOAi, Domain Name Owners Association of India.
[Disclaimer: My analysis could be wrong. Do your own due diligence while making investment decisions. If you want me to write about something specific, email me.]

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