Clear DefinitionsEscrow Contract
1 min read
Pronunciation
[es-kroh kon-trakt]
Analogy
An escrow contract is like a notary holding the deposit for a house sale until both buyer and seller fulfill their obligations.
Definition
A smart contract that holds funds or assets in trust until predefined conditions are met, then releases them to the designated parties.
Key Points Intro
Escrow contracts enforce conditional transfers via:
Key Points
Conditional logic: `require` statements for release conditions.
Multi‑party roles: Payer, payee, and optionally an arbiter.
Timeouts: Refunds if conditions not met within deadline.
Dispute resolution: Arbiter function to release or refund.
Example
```
function release() external onlyArbiter {
payable(payee).transfer(amount);
}
function refund() external after(deadline) {
payable(payer).transfer(amount);
}
```
Technical Deep Dive
Store `payer`, `payee`, `arbiter`, `amount`, `deadline`. On deposit, require `msg.value == amount`. Implement `release()` restricted to `arbiter` and `refund()` allowed after `deadline`. Use events `Deposited`, `Released`, `Refunded` for transparency.
Security Warning
If arbiter key is compromised, funds can be misreleased; consider multi‑arbiter multisig.
Caveat
Funds locked until resolution; poorly defined conditions can trap assets.
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