Approval phase

Phase 4 — Approval (Validating Progress and Unlocking Readiness)

After the Service Provider updates a milestone’s status, the Approver steps in. This is the phase where intent meets validation — the moment a platform or client officially confirms that progress is satisfactory.

Approval is the green light that tells the escrow:

“This milestone has met the conditions. It can now move toward payment.”

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🧾 What Approval Means

Approving a milestone doesn’t move funds yet — it simply updates the milestone’s internal flag: approved: true

That single flag transforms the milestone from in progress to ready for release.

It’s a lightweight change in data but a heavy one in meaning — because once approved, the milestone is permanently recorded as validated. There’s no “unapprove” function. The decision becomes part of the escrow’s history.

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👤 Who Approves

Only the Approver — the wallet assigned to that role — can sign the approval. This address is often:

• The buyer in a freelance contract,

• The sponsor in a grant,

• Or the platform logic in automated or multi-party flows.

The Approver’s signature confirms that:

1. The milestone has been delivered satisfactorily, and

2. The platform can now safely move toward release.

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🔁 How Approval Works Across Escrow Types

Single-Release Escrow

• All milestones must be approved before any funds can move.

• Once every milestone carries the approved: true flag, the escrow becomes “ready for release.”

• The Release Signer can then execute the payout in one transaction.

Multi-Release Escrow

• Each milestone has its own approval and release logic.

• Approving one milestone makes that milestone’s funds eligible for release, regardless of others.

• This allows multiple, independent approval-release cycles within the same escrow.

🧩 In short:

• Single-Release → approval is collective (all or nothing).

• Multi-Release → approval is modular (one milestone at a time).

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🪶 The Freedom of Approval Timing

Approvals can happen at any moment, regardless of the milestone’s current “status” text.

Even if the Service Provider used a custom status like “Under Review” or “In Transit”, the Approver can sign approval immediately if they’re satisfied.

That flexibility allows each platform to define its own logic — maybe auto-approving after a timer, or requiring manual review before payment.

Once approved:

• The milestone’s approved flag turns true,

• The escrow recognizes that milestone as complete,

• And it remains approved for the rest of its lifecycle.

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🧩 Relation to Disputes and Release

Approval is also what separates smooth transactions from disputes. If the Approver signs, the flow advances to Release. If they refuse or challenge, the same milestone can instead move into Dispute Resolution.

🧭 Approval is the fork in the road — One path leads to payment, the other to mediation.

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📦 Outcome of the Approval Phase

By the end of this phase:

• The milestone’s approved flag is set to true.

• The escrow recognizes that milestone as ready for release.

• The approval event is permanently logged on-chain.

• Participants can view the approval in real time through the Escrow Viewer.

💡 Approval doesn’t release funds — it unlocks the ability to. It’s the signal that work is accepted, and the escrow can now fulfill its purpose.