# Escrow, Delivery, and Dispute Resolution

Gonana's escrow system is the trust engine that enables strangers to transact confidently across borders. When a buyer commits to a purchase, funds are locked in a smart contract escrow that neither party can unilaterally access. The escrow state machine progresses through clearly defined stages. Upon initialization, the buyer deposits stablecoins or fiat-converted crypto into the escrow. When the seller confirms the order and hands over the commodity to the logistics partner, the contract transitions to the dispatch state, recording custody transfer on-chain. As the shipment progresses, milestone events such as export clearance, in-transit updates, import clearance, and final delivery are logged by logistics oracles. Upon delivery, the logistics partner submits signed proof of delivery, optionally supplemented by IoT telemetry data for high-value goods. The buyer has a defined window to inspect the goods and confirm receipt. Once confirmed, the escrow automatically releases funds, splitting payment to the seller, logistics provider, and platform fees according to pre-agreed terms.

If the buyer raises a dispute, due to quality issues, quantity discrepancies, or non-delivery, the escrow enters a mediation state. Both parties submit evidence, such as photos, inspection reports, or signed documents, which are hashed and stored on-chain for immutability. A neutral arbitrator, which may be a trained mediator, a DAO committee, or an AI-assisted decision engine in later phases, reviews the evidence and issues a binding resolution. The smart contract enforces the outcome, whether that means full refund, partial refund, or full payment to the seller. Partial delivery or quality adjustments are supported through oracle-provided price data and signed inspector reports, allowing proportional release of funds. This programmable dispute resolution mechanism reduces friction, lowers costs, and ensures fair outcomes without requiring expensive legal proceedings.

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