Interesting concept, but what if the client doesn't approve of the project delivered by the freelancer, or the client tries to scam the freelancer by taking the work and refusing payment? Is there some kind of arbitrage system in place to handle this type of situation?
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I think that's what the Escrow does..you pay to the escrow, it holds your funds until you are satisfied with the project and approves it. Then the freelancer gets paid.