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

Funding Phase

PreviousInitiation PhaseNextComplete phase

Last updated 3 months ago

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The Funding Phase is where funds are deposited into the escrow smart contract, signaling the formal commitment of all parties to the transaction. This phase ensures the financial security of the agreement, builds trust among participants, and sets the stage for the remaining phases.


Key Actions

1. Depositing Funds

  • Anyone with a Stellar wallet and funds in the configured currency can deposit to the escrow smart contract.

  • The escrow contract address is the Escrow ID (Contract ID) generated during the Initiation Phase.

2. Escrow Contract Updates

  • Upon deposit, the escrow contract:

    • Updates the balance to reflect the deposited amount.

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

3. Verification by Participants

  • All participants, including the Milestone Marker, Release Signer, and Platform Address, can independently verify the transaction using:

    • The transaction ID (e.g., tx123abc) on the Stellar network and Stellar block explorer.

    • The Escrow Viewer provided by Trustless Work.

    • A direct request to the Trustless Work API using the Escrow ID.


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.


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.

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