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The crypto market is definitely in bear mode nowadays. 2022 is so far a difficult year for all major virtual assets but people’s interest in cryptocurrency still remains high. Blockchain technology is continuing to grow in popularity and use cases. Massive disruptions are taking place in fintech through blockchain-enabled business models. Digital assets are proliferating into every sphere of economy and geographies. Tokens, stables and tokenised derivatives of real assets are taking the digital economy and commerce to a new height. We are witnessing a massive revolution but investors still lack safety for their deals or payments. Cryptocurrency can be spent just like real money, so transactions are often prone to scam attempts in a marketplace. Suppose, a seller wants to make a business deal by selling his crypto without the risk of fraud while avoiding any centralized custodian. Here comes the role of a Web3 Escrow service. Trust Treaty is a new project that is making a nice buzz by offering this service with the help of its refundable smart contracts
On a public blockchain, the transactions are immutable and irreversible. That means that once a transaction happens, you can’t reverse it and it becomes permanent. Dishonest people often take full benefit of this blockchain feature. OTC deals of crypto are usually not possible on centralized exchanges as buyers want to buy with minimum slippage and sometimes below market price for significantly large deals. Some OTC brokers act as middlemen in such cases. Many people get scammed while doing such deals as after making the committed transaction, the other party may deny making the transaction. Trust is essential to conduct such deals but how do you trust an unknown entity? When you make a deal in the normal financial world, you make a legal contract with the other party. That contract protects both parties legally. Trust Treaty’s decentralized platform allows the building of smart contracts that can be tailor-made. The contracts are prepaid and automated. Two parties sign the contract on the blockchain through their wallets and the contract refunds in case of breach of the contract. The project was initiated by a team having expertise in finance and negotiations in VC deals. The product is operational now.
Trust Treaty has been designed to provide services to cross-chain customers. The smart contracts are available on Ethereum, BINANCE Smart Chain and Polygon. Suppose you want to exchange your 5000 USDT on Ethereum for BNB on Binance Smart Chain. You don’t want to use any cross-chain bridge or any central custodian platform. You just want to do a private OTC deal with minimum risk! You have already got the party who wants to do the deal with you but you can’t trust that entity. Now you need to follow the below-mentioned steps:
- Simply go to Trust Treaty DAPP, connect your wallet and create a contract. Both parties need to sign the contract with their wallets. Terms and conditions of the contract must be filled in properly along with the time frame as in case of disputes the initial contract agreement will be the basis of taking any decision. Here you are the and the other party is the service provider
- Everything looks fine. You need to transfer your 5000 USDT to the smart contract escrow now. Once the other party transfers BNB to your Binance Smart Chain address and provides the transaction hash, you display your satisfaction to release your USDT from the escrow by signing with your wallet. Funds get released automatically from the escrow.
- Suppose, the other party doesn’t transfer the committed BNB to you within the stipulated time frame. You can raise a dispute now. Dispute resolution time is 1 to 72 hrs depending on the complexity of the case. Trust Treaty team will analyse the case and find that the service provider has breached the contract in this particular case. The fund will be returned to you. For refunds, there is a flat 1% fee for a minimum of $5 up to a maximum of $50.
Trust Treaty is bringing innovations. Polygon DAO gave it a grant recently. The project is also involved in Binance’s MVB Incubation Program. The platform tax varies from 0.1% to 3% only of the transacted amount as the team wants fast adoption. It will be important for Trust Treaty to offer various types of smart contracts down the line while keeping the platform secured and that needs good capital investment. Several VCs have already shown interest in this project and a public fund-raising event also should occur soon. Trust Treaty’s use case is not limited to providing OTC deals. The high composability of smart contracts unleashes huge opportunities. The platform can be used to offer services like freelancer hiring, real estate deal or even e-commerce. Web3 is evolving at a rapid pace but we need solutions that bring trust to it. Trust Treaty can definitely play a big role to build mutual trust in the next generation fintech environment. The pre-negotiated contract will make everything transparent, secure and easy! Keep an eye on Trust Treaty for nice surprises in the coming time.
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Note: The article was first published
