Realtize Investment Releases ERC-5470 — An “Escrow Protocol Standard”
What if the blockchain proposed a money-back guarantee? Granted, it wouldn’t be your traditional kind of investment policy. Yet, it ensures the safety of your funds; hence, you are insured.
With the volatility of cryptocurrency, trading, the presence of rug pulls, and the overwhelming threat of losing funds in any one of these activities or a probable set of others, the rational move for any investor with money to spend on the blockchain and its latest developments will be to source out ways to win more and lose less.
So, why doesn’t everyone use the insurance policy made available to them? Well, the problem is as simple as why most slip and fall from stepping on a banana peel. No one saw it there.
The Logic of Realtize’s ERC-5470 Escrow Token Standard
Imagine initiating a transaction from your Trust Wallet, only to realize seconds after its success that you made a mistake. Since the blockchain doesn’t support refunds, you can either depend on the integrity of the receiver or, in most cases, forget about it.
However, with Realtize’s ERC-5470, you can simply demand a refund if your “mistake” falls within the requirements of the ERC-5470 protocol’s policy.
Do you get how unconventionally traditional that process is?
While that might be true for most blockchain projects, keep in mind that Realtize works by merging the physical into the blockchain, making investments both easier and safer for everyone.
How Do the ERC-5470 Escrow Token Work?
During Realtize’s token sale, an issuer receives funds from buyers (investors) and then gives out the tokens that were made in exchange.
If the offering process goes off without a hitch, there usually aren’t any problems. But if buyers don’t follow the rules for compliance or other rules, they may have to change their plans or the offering may be canceled.
Normally, in the on-chain network, this is a non-refund process. However, by utilizing the protocol interface, smart contracts can communicate with the ERC-5470 interface for payable tokens.
This circumstantial process works by locking both the buyer and seller’s funds in an escrow account and initiating a refund to the buyer when the requirements do not meet the stated agreements of both parties’ smart contracts.
What are the Requirements for the ERC-5470 Escrow Token ?
For the ERC-5470 to be fully functional, there must be an investor, a seller, and an escrow contract. In this instance, both parties will send their funds and tokens to an escrow account.
When the funds are sent, an escrow contract is initiated by the seller that runs on the ERC-5470 standard.
If any problem related to payment value, quantity, time, and other related factors occurs within the time of the transaction, the buyer can invoke a refund, in which case their funds will be sent back to them through the escrow contract.
Finally, while the Erc-5470 might provide refunds, it works like a traditional investment policy and does not apply to instances that do not fall within its requirements.
So, if you’re an investor with fast fingers who tends to uneventfully add an extra figure, or you want to stay on the safer side of your transactions, the ERC-5470 has got you covered.
Better low insurance than none at all is the meaning of “safe than sorry.”