Both parties protected.
For example, you sell
www.24up.net domain. The buyer agreed to pay you $5000.
Escrow will ask the buyer to deposit the funds.
Once Escrow received funds from buyer, Escrow will notify seller to transfer ownership.
The seller will initiate transfer.
Escrow will notify buyer that seller tranfered ownership.
The buyer will check ownership.
If the buyer don't response, Esrow will notify both party and will give update.
If the buyer is satisfied, Escrow will release funds to seller.
For any dispute, Escrow will do the negotiation and make sure that both party satisfied to the deal.
This process is actually explained in detailed when you're starting to sell a items.
Hope this help.
tw.