CodeHawks Escrow Contract - Competition Details

Summary

Escrow contract implementation lacks time limits for the buyer to confirm receipt and for dispute resolution. This can result in funds being locked indefinitely, causing inconvenience and potential financial loss for the parties involved. Implementing time limits can ensure a fair and efficient process. Alternative solutions, such as customizable time limits, dispute resolution mechanisms, or involving an escrow agent, can also be considered based on specific requirements.

Vulnerability Details

absence of time limits for confirmation of receipt and dispute resolution. Without time limits, there is no mechanism to enforce timely actions, potentially leading to funds being locked indefinitely. This can impact the user experience and financial outcomes for the parties involved.

Impact

• Inconvenience and frustration for the buyer and seller due to prolonged waiting periods for confirmation of receipt and dispute resolution.

• Financial loss for the parties involved if funds are locked in the contract indefinitely.

• Potential disputes and conflicts arising from delayed actions, affecting the trust and reputation of the involved parties.

• Inefficient use of resources, as the contract may hold funds for an extended period without resolution.

Tools Used

Manual Analysis

Recommendations

1. Implement time limits: Add time limits for the buyer to confirm receipt and for dispute resolution, we can use block number too. This ensures prompt actions and prevents funds from being locked indefinitely.

2. Customizable time limits: Provide the flexibility for the involved parties to set their own time limits based on the transaction requirements. This allows for a fair and tailored approach.

3. Dispute resolution mechanism: Implement a dispute resolution mechanism involving a neutral third party or an arbitration process. This provides a fair and unbiased resolution in case of disputes, complementing the time limits.

4. Escrow agent involvement: Consider involving an escrow agent or a trusted third party to oversee the transaction and mediate any disputes. This adds an extra layer of security and fairness

5. Communicate and agree on terms: Clearly communicate and agree upon the time limits and dispute resolution process with all parties involved before initiating the transaction. This ensures transparency and mutual understanding.