Funding Phase

The Funding Phase is a critical step in the escrow process where the client deposits the agreed-upon funds into the escrow smart contract. This action ensures that the funds are securely held, builds trust among participants, and prepares the transaction for the next phases.

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Key Actions

1. Client Deposits Funds:

   • The client (Alice) transfers the agreed amount (e.g., $100) to the escrow smart contract (Escrow ID) using USDC on Stellar.

2. Escrow Contract Updates:

   • The escrow contract:

     • Updates the balance to reflect the deposited amount (e.g., $100).

     • Emits a blockchain Deposit Event, notifying all participants of the successful funding.

3. Verification by Participants:

   • All participants, including the service provider (Bob) and platform (Marketplace), can independently verify the funding status using the transaction ID (e.g., tx123abc), ensuring transparency and security.

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Key Notes

• Blockchain Transparency: All participants can independently verify the funding status using the transaction ID on-chain.

• Stellar Integration Flexibility: Any Stellar Anchor (on/off-ramp) can be seamlessly integrated to fund the escrow, allowing for global accessibility and currency flexibility.

• Escrow Balance Updates: Participants calculate funding status off-chain by comparing the balance with the agreed amount.

• Platform's Role: The platform ensures secure management of funds during this phase and provides updates to participants.

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Outcomes of the Funding Phase

1. Funds Held On-Chain:

   • The deposited amount is securely held in the escrow smart contract, ensuring safety and transparency.

2. Participant Verification:

   • All participants can verify the funding details using the on-chain transaction ID, building trust and confidence.

3. Trust Reinforced:

   • The client’s deposit demonstrates their commitment to the transaction, fostering trust with the service provider.