Trustless Work
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    • 🚀Smart Escrow API
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    • Getting Started
    • useSendTransaction
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    • useGetMultipleEscrowBalances
    • useInitializeEscrow
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    • 🤖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
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        • 📜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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  • Example Scenario
  • Escrow Configuration
  • Escrow Lifecycle
  • Benefits
  • Optional Enhancements
  • Live Use Case: SafeTrust

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  1. Use Cases by Industry

Security Deposits

PreviousP2P Exchanges and OTC DesksNextMilestone-based Freelance & Contract Work

Last updated 2 months ago

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Security deposits are a common requirement in rentals—whether it's housing, co-living spaces, equipment, or other real-world use cases. Trustless Work makes them fair, transparent, and automated using smart escrows.

With Trustless Work, platforms can configure non-custodial smart contracts that define exactly how and when security deposits are returned or withheld.


Example Scenario

Alice rents a unit on a co-living platform. She deposits $500 USDC as a security deposit. At the end of her stay, she wants the deposit refunded—assuming there’s no damage.


Escrow Configuration

Role
Address

Depositor

Alice

Milestone Marker

Alice or Platform

Milestone Approver

Bob (Landlord/Host)

Release Signer

Platform

Receiver

Alice


Escrow Lifecycle

  1. Initiation The platform configures the escrow with all required roles using Trustless Work’s API.

  2. Funding Alice deposits $500 USDC into the escrow. The funds are held in a neutral smart contract.

  3. Milestone Update After Alice’s stay ends, either Alice or the platform marks the milestone as "Request Refund."

  4. Approval Bob inspects the property:

    • If everything is fine: Bob approves the refund.

    • If there are issues: Bob can reject or request a partial refund.

  5. Release The platform (as Release Signer) finalizes the release:

    • 100% refund to Alice if approved.

    • Partial refund based on agreement.

    • Escalation possible if a dispute arises.


Benefits

  • Trustless & Transparent: Smart contracts define rules upfront; funds are never held by the platform.

  • Customizable Logic: Platforms can set deadlines, approval rules, or automatic fallback releases.

  • Global by Default: Uses stablecoins on Stellar for fast, low-fee cross-border payments.

  • Flexible Roles: Easily supports different dispute flows—platform-led, DAO-governed, or peer-to-peer.


Optional Enhancements

  • Dispute Resolver Role: Add an arbiter or DAO to resolve conflicts.

  • Time-Based Auto Approval: If Bob doesn’t respond in X days, the contract automatically refunds Alice.


Live Use Case: SafeTrust

SafeTrust is a platform for co-living spaces that uses Trustless Work to manage security deposits. By using smart escrows, SafeTrust ensures that all tenants receive fair treatment while reducing operational overhead for hosts.

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