The Deelit Protocol is a decentralized application that secures transactions between two parties.

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How does it work?

The protocol involves 3 main actors:

  • A buyer: The payment sender.
  • A seller: The payment receiver.
  • A judge: A neutral actor who intervenes in case of a conflict.

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1. Transaction Preparation

The buyer and the seller agree on the terms of the transaction. These terms are defined by 3 input parameters of the protocol that will allow the judge to make a decision in case of a conflict.

  1. The product or service to be sold.
  2. An offer for the product or service.
  3. A payment request specifying a period during which the funds will be locked in the protocol.

This phase is essential to identify the terms of the transaction and avoid any future conflicts. At this stage, exchanges are entirely off-chain and do not involve network fees.

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2. Payment Issuance

Once the terms are accepted by both the seller and the buyer, the buyer issues the payment using the Deelit protocol. The funds are then locked in the protocol for the previously agreed period.

Pay Deelit Protocol

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2.1. Transaction Fees

The Deelit protocol charges a commission on each transaction. This commission is paid by the buyer at the time of payment issuance to the protocol.

This commission is fixed per network and can be viewed on the dedicated networks page.

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3. Payment Reception

There are two ways to unlock the payment for the seller:

  1. The buyer accepts the transaction.
  2. The transaction period expires and the buyer has not responded.

If either case occurs, the seller can then retrieve the funds.

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3.1. Transaction Acceptance

The buyer can accept the transaction at any time before the end of the fund retention period on the protocol.

To do this, the buyer simply needs to sign a message from their wallet. This message can then be used by the seller to retrieve the funds by interacting with the protocol.

Claim Deelit Protocol

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3.2. End of the Period

If the buyer has not accepted the transaction before the end of the period, the seller can then retrieve the funds by interacting with the protocol. To do this, the seller must claim the funds on the protocol.

Claim Expired Deelit Protocol

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4. In Case of Conflict

If one of the parties raises a conflict, the judge intervenes to make a decision. The judge can either side with the party who raised the conflict or with the other party.

Once the conflict is resolved, the party in the right directly retrieves the funds locked in the protocol.

Conflict Deelit Protocol

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