Trustless Work
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  • Welcome
    • Why Escrows Matter
    • Who Should Use This
    • Links
  • ⚒️Core Concepts
    • Smart Escrow Design
      • What does a Smart Escrow "look like"?
    • Roles in Trustless Work
    • Escrow Lifecycle
      • Initiation Phase
      • Funding Phase
      • Complete phase
      • Approval phase
      • Release phase
      • Dispute Resolution
    • USDC: The Stablecoin Powering Trustless Work
    • Stellar & Soroban: The Backbone of Trustless Work
  • 💻Developer Guide
    • 🚀Developer Quickstart
    • Authentication
      • Request Api Key
    • Schema
    • Architecture
    • Stellar Wallets
      • Freighter Wallet
      • Albedo Wallet
      • xBull Wallet
      • Rabet Wallet
      • Lobstr Wallet
      • Hana Wallet
      • Additional Resources
      • Troubleshooting & FAQs
    • How to Get Testnet Tokens
  • API Reference
    • Introduction
    • Types
      • Basic
      • Entities
      • Payloads
      • Responses
      • Errors
    • Single Release Escrow
      • Deploy
      • Fund Escrow
      • Approve Milestone
      • Change Milestone Status
      • Release Funds
      • Dispute Escrow
      • Resolve Dispute
      • Get Escrow
      • Update Escrow
    • Multi Release Escrow
      • Deploy
      • Fund Escrow
      • Approve Milestone
      • Change Milestone Status
      • Release Milestone Funds
      • Dispute Milestone
      • Resolve Milestone Dispute
      • Update Escrow
      • Get Escrow
    • Helpers
      • Set Trustline
      • Send Transaction
      • Get Multiple Escrow Balance
    • 🚀Smart Escrow API
  • React Library
    • Getting Started
    • useSendTransaction
    • useGetEscrow
    • useGetMultipleEscrowBalances
    • useInitializeEscrow
    • useUpdateEscrow
    • useFundEscrow
    • useChangeMilestoneApprovedFlag
    • useChangeMilestoneStatus
    • useReleaseFunds
    • useStartDispute
    • useResolveDispute
  • Templates & Components
    • 🤖Using the dApp
      • Step 1: Accessing the Trustless Work Dapp and Logging In
      • Step 2: Creating a Profile and Requesting an API Key
      • Step 3: Creating an Escrow
      • Step 4: Funding an Escrow
      • Step 5: Marking a Milestone as Done ✅
      • Step 6: Approving the Milestone
      • Step 7: Releasing the Payment
      • Resolving Disputes
    • Integration Demo Project
      • Getting Started
      • Configuration
      • Context API
      • Wallet Setup
      • Trustlines
      • Services
      • Helpers
      • Error Handling
      • Forms
        • Initialize Escrow
        • Fund Escrow
        • Get Escrow
        • Get Multiple Escrow Balances
        • Resolve Dispute
        • Change Milestone Status
        • Change Milestone Flag
        • Change Dispute Flag
        • Release Funds
        • Update Escrow
      • UI Components
        • Pages
        • Cards
        • Tabs
        • Utils
  • Tools & Utilities
  • 🌍Use Cases by Industry
    • Marketplaces & E-commerce
    • Grants, Bounties, and Hackathons
    • P2P Exchanges and OTC Desks
    • Security Deposits
    • Milestone-based Freelance & Contract Work
    • Crowdfunding & Pre-orders
    • DAO Treasury & Working Group Budgets
    • Education & Online Courses
    • Subscription + Performance-based Retainers
  • 🏴‍☠️Community & Contribution
    • 🌎Spotlight: Kindfi
    • 🛣️Roadmap: The Journey Ahead
    • Contributor's Guide
    • 📂Open-Source Templates & Developer Tools
  • 📢Appendix & Archive
    • Contact and Support
    • Notion for Startups
    • Meru
    • ✒️Background & Theory
      • 📘Core Concepts & Escrow Glossary
      • 🎒Historical Context
        • 📜Escrow History:
          • 🗿Ancient to Colonial Era
          • 🏦Banking Era (19th - 20th Century)
          • 💻The Digital Era and Online Escrow
        • ⛓️Blockchain Era: Smart Escrows
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  • Core Phases of the Escrow Lifecycle
  • Alternative Phase in the Escrow Lifecycle

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  1. Core Concepts

Escrow Lifecycle

A Journey in Phases

PreviousRoles in Trustless WorkNextInitiation Phase

Last updated 3 months ago

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The escrow lifecycle represents the structured flow of actions and responsibilities involved in securely managing a transaction. At Trustless Work, we break this lifecycle into clear, logical phases, ensuring transparency and adaptability for diverse use cases.

Core Phases of the Escrow Lifecycle

  1. Funding Phase: The phase where the funds are deposited into the escrow contract, securing the transaction and preparing for the next steps.

  2. Milestone Updates Phase: As the transaction progresses, milestones are marked as completed by the designated party, providing visibility and enabling reviews.

  3. Approval Phase: The phase where milestones are reviewed and approved (or disputed), moving the transaction closer to resolution.

  4. Release Phase: Funds are released to the designated recipient based on milestone approvals or dispute resolutions, completing the financial component of the transaction.


Alternative Phase in the Escrow Lifecycle

If, any of the parties raise a dispute, the lifecycle takes a " detour" into the dispute resolution phase.

  1. Dispute Resolution Phase: Engaged when there are disagreements between parties, this phase ensures fairness by resolving disputes and determining the final outcome. Disputes can end in a full refund, partial refund, or null refund to the client.

Initiation Phase: The foundation of the process, where roles, responsibilities, and transaction terms are established, and the escrow contract is created.

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