Dispute Resolution

The Dispute Resolution Phase is triggered when the client (e.g., Alice) raises a dispute during the Approval Phase. This phase involves a thorough 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 (Alice) 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.

   • The escrow contract updates:

     • Milestone Status: Set to In Dispute.

     • Approved 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 updated with:

     • Resolver Decision: Details of the resolution.

     • Updated Amounts: Adjustments to the escrowed funds (e.g., splitting funds, issuing a refund).

4. Final Approval and Resolution:

   • The resolver sets the Final Approval Flag to True, enabling the transaction to proceed to the Release Phase.

   • The escrow emits an event, notifying all participants of the resolution.

Key Metadata

1. Milestone Status:

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

2. Dispute Details:

   • Captures the client’s reason for raising the dispute, supported by evidence.

3. Resolver Decision:

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

4. Updated Amounts:

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

5. Final Approval Flag:

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

Key Notes

• Transparency and Fairness: The dispute resolver ensures a neutral and unbiased resolution process, with all decisions recorded on-chain.

• Evidence-Based Decisions: Supporting documentation and evidence are critical to the resolution process, providing clarity for all parties involved.

• Locked State: While in dispute, the escrow contract prevents any unauthorized release of funds, safeguarding all participants.

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 Final Approval Flag 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.