Trustless Work
  • Welcome
    • Why Escrows Matter
    • 🛤️Our Journey so Far
      • 🤔The Problem: Origins of Trustless Work
      • 👾The team comes together
      • 💡The Solution: Escrows
      • 🏆Key Milestones
        • 🌠DraperU Stellar Astro Hacker House: A Pivotal Moment
        • Launching the API V1 at ETH Pura Vida Hackathon
      • 🚀Current Programs
        • 🌟DraperU Embark Program
        • 💻OD Hack Campaigns
      • 🛠️Vertical Development
      • 🔮Future Vision
  • 📌Start Here
    • ☀️About Trustless Work
      • Vision and Mission
      • Team
  • ⚒️Understanding Smart Escrows
    • 🥸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 Resources
    • Introduction
    • Schema
    • Types
      • Basic
      • Entities
      • Payloads
      • Responses
      • Errors
    • Quickstart
      • 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
    • Authentication
      • Request Api Key
    • API Reference
      • Deploy
        • Initialize Escrow
      • Escrows
        • Fund Escrow
        • Get Escrow
        • Resolve Dispute
        • Change Milestone Status
        • Change Milestone Flag
        • Start Dispute
        • Release Funds
        • Update Escorw
      • Helpers
        • Set Trustline
        • Send Transaction
        • Get Multiple Escrow Balance
    • React Library
      • Getting Started
      • useSendTransaction
      • useGetEscrow
      • useGetMultipleEscrowBalances
      • useInitializeEscrow
      • useUpdateEscrow
      • useFundEscrow
      • useChangeMilestoneApprovedFlag
      • useChangeMilestoneStatus
      • useReleaseFunds
      • useStartDispute
      • useResolveDispute
    • 🚀Smart Escrow API
    • 🧰Essential Tools for Developers
      • Stellar Wallets
        • Freighter Wallet
        • Albedo Wallet
        • xBull Wallet
        • Rabet Wallet
        • Lobstr Wallet
        • Hana Wallet
        • Additional Resources
        • Troubleshooting & FAQs
      • How to Get Testnet Tokens
  • 🌍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
  • 🤖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
  • 🏴‍☠️Community
    • 🌎Spotlight: Kindfi
    • 🛣️Roadmap: The Journey Ahead
    • Contributor's Guide
    • 📂Open-Source Templates & Developer Tools
  • ✒️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
  • Links
    • ⚒️Trustless Work dApp
    • 🌐Trustless Work Website
    • 📣Telegram Chat
    • 💎Only Dust Profile
    • 👩‍💻Swagger for API
    • 📜Github
  • 📢Appendices
    • Contact and Support
    • Notion for Startups
    • Meru
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  1. Understanding Smart Escrows
  2. Smart Escrow Design
  3. Escrow Lifecycle

Dispute Resolution

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Last updated 3 months ago

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The Dispute Resolution Phase is triggered when either the client or the service provider raises a dispute. This phase involves a review by the designated dispute resolver (e.g., the platform, Marketplace) to determine how the funds should be allocated. The escrow contract remains in a locked state, with no funds released, until the dispute is resolved.


Key Actions

  1. Raising a Dispute:

    • The client (or Service Provider) identifies issues with the milestone deliverable and raises a dispute.

    • Evidence or supporting documentation (e.g., screenshots, contracts, delivery notes) is submitted to the dispute resolver (As a URL)

    • The escrow contract updates:

      • Milestone Status: Set to In Dispute.

      • Dispute Flag: Updated to reflect the dispute status.

  2. Dispute Resolver Review:

    • The dispute resolver (Marketplace) reviews the case, including:

      • Evidence provided by the client.

      • Responses or counter-evidence from the service provider (Bob).

    • The resolver makes a decision on fund allocation (e.g., full refund to client, partial payment to service provider).

  3. Escrow Contract Updates:

    • Based on the resolver’s decision, the escrow contract is called for the release with:

      • Funds for Service Provider: Amount to be sent to service provider

      • Funds for Client: Amount to be sent back to the client

  4. Sign and Release:

    • The resolver signs the resolution, releasing payment as set and setting the released flag to TRUE


Key Metadata

  1. Milestone Status:

    • In Dispute: Indicates the milestone is under review by the dispute resolver.

  2. Resolver Decision:

    • Contains the final decision, including updated allocations of funds.

  3. Updated Amounts:

    • Reflects any changes to the original escrowed amount based on the resolution.

  4. Final Approval Flag:

    • Set to True once the dispute is resolved, enabling the transition to the Release Phase.


Phase Outcomes

  1. Resolution Achieved:

    • Funds are allocated according to the dispute resolver’s decision, ensuring a fair outcome for both parties.

  2. Escrow Prepared for Release:

    • The resolution is set, enabling the transaction to transition to the Release Phase.

  3. Dispute Transparency Ensured:

    • All resolution details, including fund adjustments and final decisions, are recorded and visible to participants.

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