The problem AI Decentralized Escrow solves

Traditional escrow systems rely on centralized intermediaries, leading to high fees, delays, and trust issues. This decentralized escrow system solves these problems by offering a trustless solution where:

No need for intermediaries: Parties can transact directly, without depending on a third party, saving time and costs.
Transparent and secure: Funds are held securely on the blockchain and only released when both parties agree or after dispute resolution.
AI-powered dispute resolution: Disputes are handled more efficiently with the help of an AI court, offering impartial and data-driven suggestions to the Arbiter.
Global accessibility: Built on Polygon for fast, low-cost transactions, making it accessible to anyone worldwide.

Challenges I ran into

One major challenge was integrating the AI-powered dispute resolution system with the blockchain-based escrow smart contract. Bridging the decentralized nature of the blockchain with centralized AI suggestions required careful design to ensure data flow between the on-chain contract and the off-chain Flask server.

To overcome this, I implemented a secure API that allows the Arbiter to query the AI system without compromising the decentralized integrity of the escrow process. Additionally, using tools like Wagmi and Viem helped streamline blockchain interactions, and thorough testing with Foundry ensured the smart contracts handled disputes correctly.