When you buy something with Bitcoin, the transaction usually goes through an escrow service. This protects the buyer by ensuring that they don’t send their Bitcoin to a scammer, and it protects the seller by ensuring that they don’t never receive the Bitcoin.
The way it works is that the buyer and seller agree on an amount of Bitcoin that the buyer will send to an escrow address. Once the buyer has sent the required amount of Bitcoin to the escrow address, the seller is then released their agreed upon amount of Bitcoin.
If for some reason the transaction doesn’t go as planned, then both parties can agree to cancel the transaction and have their respective Bitcoin refunded back to them.
In summary, escrow in Bitcoin is a way to protect both buyers and sellers in a transaction by using a third party to hold onto the Bitcoin until both parties have agreed that the transaction is successful.