Blockchain Escrow Payment System

The FTT platform’s escrow payment system utilizes blockchain technology and an upgradable Factory contract to create a unique Escrow contract for each escrow transaction, ensuring the security, transparency, and trustlessness of the transaction. The system uses smart contracts to manage the buyer’s payment and the transfer of ownership of goods, ensuring the automation and efficiency of the transaction process.

Below is the detailed technical solution for the Escrow Payment System:

1. Creation and Management of Escrow Contracts

• Factory Contract: The FTT platform employs an upgradable Factory contract model. This contract dynamically creates a new Escrow contract for each escrow transaction. Each Escrow contract is tied to a specific transaction and the parties involved and has independent functionality.

• Escrow Contract: Each Escrow contract’s functions include locking the buyer’s funds, confirming the transfer of ownership of goods from the seller, handling arbitration, and releasing funds. Each Escrow contract is isolated to ensure high security and separation of transactions.

2. Transaction Process

• Buyer’s Funds Deposit: At the start of the transaction, the buyer deposits the agreed-upon funds (such as USDT) into a specific Escrow contract. The platform does not directly handle or manage the buyer’s funds, and the funds are controlled solely by the smart contract, ensuring that all fund movements are in accordance with preset rules.

• Transfer of Ownership of Goods: At the same time, the seller transfers the ownership of the goods to the buyer or the financing party’s account through a smart contract, depending on the conditions set in the contract. If a loan contract is used, the ownership of the goods will transfer between the buyer and the lender until all debts are paid off.

• Automated Transaction Execution: Once the buyer’s funds are locked and the seller has completed the transfer of ownership of the goods, the transaction is considered complete. The smart contract will automatically confirm the completion of the transaction and, in the absence of any dispute, release the funds to the seller.

3. Arbitration Mechanism

• Arbitration Rights: The FTT platform, as a neutral party, holds the arbitration rights for escrow transactions but does not have the right to withdraw funds. If a dispute arises, either party can trigger the arbitration process. The arbitration process will occur within a timeframe specified in the contract, and it will be decided by an appointed arbitrator or the platform.

• Arbitration Conditions: Arbitration will be based on the contract terms and the evidence provided by both parties, ensuring that the process is fair and transparent. If the arbitration supports the seller, the funds will be transferred to the seller’s account; if it supports the buyer, the funds will be returned to the buyer.

• Dispute Resolution Deadline: All arbitration processes will be completed within a predefined time frame set in the smart contract, preventing excessive delays and ensuring the transaction is handled efficiently and fairly.