Software Design

State Machines in P2P Escrow Contracts

State Diagrams · made in Skemio

State diagram showing P2P Escrow states from Created to Funded, then Delivered, InDispute, and terminal Released or Refunded states.
State diagram showing P2P Escrow states from Created to Funded, then Delivered, InDispute, and terminal Released or Refunded states.
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What it shows

  • Explicit locking prevents double-spending and unauthorized withdrawals.
  • Dispute arbitration must be an explicit, timeout-guarded state.
  • Two terminal states ensure clean fund resolution: settled or refunded.

The takeaway

Model decentralized escrows as strict state machines to make illegal fund transfers mathematically impossible.

More state diagrams