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
    • 🚀Smart Escrow API
    • Quickstart
      • Integration Demo Project
        • Getting Started
        • Entities
        • 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
      • dApp locally
      • API Fundamental Code
    • API Reference
      • Introduction
      • Authentication
        • Request Api Key
      • Deploy
        • Initialize Escrow
      • Escrows
        • Schema
        • Fund Escrow
        • Get Escrow by Contract ID
        • Resolve Dispute
        • Change Milestone Status
        • Change Milestone Flag
        • Change Dispute Flag
        • Release Funds
        • Update escrow properties
      • Helpers
        • Set Trustline
        • Send Transaction
        • Get Multiple Escrow Balance
    • 🧰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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On this page
  • Core Use Cases
  • Escrow Flow for Marketplaces
  • Benefits for Marketplaces
  • Who Should Use This

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  1. Use Cases by Industry

Marketplaces & E-commerce

PreviousUse Cases by IndustryNextGrants, Bounties, and Hackathons

Last updated 1 month ago

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Trust is the foundation of every marketplace transaction—but building that trust usually means building complex infrastructure. Traditional platforms like eBay, Etsy, and Amazon use internal escrow mechanisms to ensure that sellers are paid only after buyers are satisfied. Most startups and emerging platforms can’t afford to build this kind of system.

Trustless Work makes it easy for any marketplace or e-commerce platform to integrate neutral, transparent escrow flows using stablecoins—without needing to manage custody, compliance, or custom infrastructure.

With just a few API calls, funds can be held securely until the product is shipped, received, or approved—ensuring fairness for both buyers and sellers.


Core Use Cases

1. Product Delivery Assurance

Hold payment in escrow when an order is placed. Release it only after the buyer confirms receipt, or automatically after a timeout.

2. Dropshipping & Cross-Border Sales

Funds stay in escrow until the seller provides valid shipping proof (e.g. tracking number). Great for low-trust environments and international trade.

3. Digital Goods & Downloads

For assets like templates, code snippets, plugins, or in-game items. Funds are released after the buyer confirms access or download is complete.

4. Second-Hand & P2P Goods

Buyers escrow payment when purchasing from another user. Once the item is received or confirmed, funds are released to the seller.


Escrow Flow for Marketplaces

  1. Initiation Phase The buyer places an order. A new escrow contract is created, defining the roles:

    • Buyer funds the escrow

    • Seller delivers the item

    • Buyer or Platform signs for release

  2. Funding Phase The buyer deposits stablecoins (e.g. USDC, EURC) into the escrow.

  3. Milestone Status Update Phase The seller marks the item as shipped or provides tracking information.

  4. Approval Phase The buyer confirms delivery or the system auto-approves after a timeout. If approved, funds move to release.

  5. Release Phase The escrow releases the funds to the seller. Optionally, a platform fee is deducted.

  6. Receiver - Receives the funds from Escrow

  7. Dispute Resolution (optional) If the buyer disputes the delivery, a platform moderator or external resolver can step in, depending on the escrow configuration.


Benefits for Marketplaces

  • Fast Integration – Plug-and-play escrow API and UI templates

  • Global Payments – Accept and settle in stablecoins (e.g. USDC) across borders

  • Reduce Fraud & Chargebacks – Escrow eliminates the need for trust in the transaction

  • Neutrality by Design – Funds are not held by the platform, but by a smart contract

  • Custom Logic – Choose who approves release: buyer, platform, or auto-timer


Who Should Use This

  • Web3 marketplaces (NFTs, gaming items, digital goods)

  • Niche e-commerce platforms with physical or digital products

  • Second-hand or peer-to-peer selling apps

  • Dropshipping or global e-commerce platforms

  • No-code marketplaces using stablecoins

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