Editorial note: The following article contains discussion of Decentralized Finance (DeFi). DeFi refers to a relatively new financial system based on blockchain, that decentralizes the infrastructure, processes, and technologies used in traditional financial transactions. As such, when it comes to DeFi, the regulatory framework that exists around traditional finance is incomplete and evolving. It is important that readers do their own research, and understand that coverage of DeFi products and services on Spotlight does not constitute endorsement by either the Spotlight editorial board, Blokhaus Inc, or any affiliated organizations.
Smartlink is a platform that utilizes the Tezos blockchain to develop a new kind of Web3 marketplace. Smartlink team is behind the Vortex DEX, AMM, and the application also offers token lockers to help projects remain transparent with their stakeholders. And the team has just the launched their flagship feature – the much anticipated decentralized escrow service.
Decentralized Escrow Service
On October 10, 2022, the Smartlink team announced that their new decentralized escrow service has gone live. Smartlink's escrow service utilizes the Tezos blockchain to facilitate the transfer of physical assets between users, much in the way that eBay works. But while traditional escrow services require escrow firms or software maintained by centralized companies to facilitation transactions between parties, Smartlink's platform uses smart contracts to facilitate the transfers.
As per the Smartlink website, the escrow service works in three main steps:
Parties use any of our customizable templates to set up the agreement and the buyer pays the amount agreed on.
Funds are held in the escrow smart contract until all the conditions are fulfilled and the buyer confirms receipt.
The smart contract will automatically release the funds to the seller’s digital wallet.
Token Lockers/Token Vesting
In addition to the escrow service, Smartlink also offers token lockers that make token vesting easy and help projects remain transparent with their stakeholders.
Token vesting is when you take a pool of funds and program their release to a linear schedule such that only a specific amount leaves the contract to specific addresses at a determined rate. This can be a useful tool for projects that raise money and have equity that needs to be split between team members or other stakeholders in the community. Token lockers thus help to keep the risk of heavy price impact through equity liquidation at bay.
Smartlink Locker allows you to lock up and distribute tokens to blockchain addresses within a given timeframe.
The distribution is based on linear vesting periods and tokens are released on a block-by-block basis.
It can be used by projects to vest team, advisor, or investor tokens in order to remain transparent with their stakeholders.
To learn more about the Smartlink escrow market place, token vesting, and the Smartlink token locker, visit Smartlink.so.