Proposal: build an escrow system for Kaia

[Emmanueltech]

Description

• [A peer-to-peer escrow system for trading Kaia, securely holding assets until both buyer and seller fulfill their obligations, while also serving as an onramp and offramp for Kaia by allowing users to convert fiat currency to Kaia and vice versa (providing an easy way to acquire Kaia from other users ]

Bounty track

• [add the name of the bounty track here]

[zxstim]

Sure. You can take a crack at this.

But give me a rough description on how you would escrow in the case of on/off ramp.

[Emmanueltech]

When a user (seller) wants to exchange Kaia for fiat, they deposit the Kaia into an escrow wallet generated by the platform, and the person (buyer) who wants to exchange fiat for Kaia sends their fiat to the escrow. Once both deposits are verified, the escrow releases the Kaia to the buyer.

[zxstim]

are you acting as middle man or it's a smart contract?

[Emmanueltech]

A smart contract

[zxstim]

How do you verify the offchain transfers?

[Emmanueltech]

I'm not sure yet, I intend to research that if this proposal gets approved.

[zxstim]

Hmm... I will give you the solution https://zkp2p.xyz/

In short, implement ZK to verify the email sent by the bank/fintech after transfer then submit the proof to the escrow smart contract to release the crypto.

[zxstim]

anyway, let me know if you want to proceed and I will approve

[Emmanueltech]

I appreciate the link, yes we can proceed.

[zxstim]

OK approved.

[Emmanueltech]

The application is live on the Kaia Testnet (Baobab), so you must configure your MetaMask wallet to interact with it. I’ve integrated ChatGPT functionality to read PDF documents and convert escrow agreements into smart contracts, allowing seamless execution on the Kaia Ledger. This integration simplifies the process of creating cryptocurrency-based escrows. I've developed a 2-of-3 multi-signature escrow process, which requires two out of three authorized parties to sign off for the escrow to complete (Creator, Receiver, and Arbitrator). This Currency conversion is managed by fetching the latest KLAY-to-FIAT rate from crypto.com to calculate and convert the corresponding amount into KLAY.

Live Deployment: Kaia Escrow (There is a contract sample to test with) Contract Deployment : Kaia Scan Repository: https://github.com/Emmanueltech/Easy-Escrow-Kaia

Next Steps:

• UI/UX Revamp: Upgrade and modernize the user interface.
• Text Input Option: Allow option so users can enter text for contract details.
• Arbitration Interface: Add a frontend component for arbitration (the functionality is already there in the smart contract).
• Automatic Notifications: Enable contract status updates and email notifications.
• FIAT-KLAY Offers: Integrate an option to create and display FIAT-KLAY offers within the platform.

[Emmanueltech]

@zxstim Hey you probably missed this.

[Emmanueltech]

@zxstim it's the an escrow system for trading Kaia, securely holding assets until both buyer and seller fulfill their obligations, while also serving as an onramp and offramp for Kaia by allowing users to convert fiat currency to Kaia and vice versa (providing an easy way to acquire Kaia from other users

[Emmanueltech]

@zxstim hey bud

[Emmanueltech]

@zxstim pinging you here again bud

[zxstim]

Disqualified due to spamming

Regarding the feedback I planned to give after consideration:

• I specifically recommended an escrow system that implements ZK proof as that's the only way to make offchain component to work; and you agreed. Going on a different tangent to build chatGPT reading of PDF doesn't solve anything (and chatGPT is not a valid use case within any legal systems globally)
• We did not agree with using an arbitration system, because in the context of this onchain system, a 2-of-3 arbitration system for escrow doesn't work anyway. it allows collusion between one exchanging party with the arbitrator. The tradfi alternative (using a bank/notary public would be a better option because of the legal protection within the service context). The original proposal would have to be proposing a custodial system for this purpose for that exact use case instead of doing a bait-and-switch half way through building.