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Crailo

Crailo

Scam free resale, never been cooler

Created on 22nd June 2025

Crailo

Crailo

Scam free resale, never been cooler

The problem Crailo solves

🛡️ The Problem Crailo Solves

Traditional Resale Marketplaces: A Breeding Ground for Scams

Most peer-to-peer (P2P) resale platforms like OLX, Craigslist, and Facebook Marketplace suffer from a lack of trust and protection:

  • No escrow system – buyers must blindly trust sellers and send payment upfront.
  • Fake listings – sellers often use misleading images or descriptions to scam buyers.
  • No dispute resolution – once a transaction goes wrong, recovery is nearly impossible.
  • No accountability – there are few penalties for bad actors.

These issues lead to rampant fraud, no buyer protection, and loss of money and trust.


✅ How Crailo Makes Resale Safer & Smarter

Crailo brings trustless safety and accountability to resale marketplaces using smart contracts, staking mechanisms, and a validator network:

🔐 Escrow-Backed Transactions

Buyers deposit the full amount into a smart contract, not directly to the seller — ensuring payment is only released when the item is verified.

🧾 Seller Staking for Honesty

Sellers must stake 10% of the product price, which is forfeited if the listing is fraudulent. This discourages scams up front.

👨‍⚖️ Decentralized Dispute Resolution

If a buyer raises a dispute, validators vote on the authenticity of the product. The decision is on-chain, fair, and tamper-proof.

💸 Slashing & Incentives

  • Buyers who back out post-validation get penalized.
  • Fraudulent sellers lose their entire stake.
  • Validators earn ERC-20 rewards, aligning their incentives with platform integrity.

📈 Optional Reputation & Staking Pools

Repeat sellers can build reputation via a staking pool, helping buyers trust verified sellers more easily.


🎯 Use Cases

  • 🔄 Second-hand electronics (phones, laptops, etc.)
  • 👟 Hypewear & fashion resale (e.g., sneakers, limited drops)
  • 🪑 Furniture or appliances with high transaction values
  • 📦 B2B liquidation resale where both parties seek added protection

Challenges we ran into

🧱 Challenges I Ran Into

Building Crailo wasn’t just about writing smart contracts — it required solving real-world edge cases in decentralized P2P commerce. Here are a few key hurdles I faced:


⚠️ 1. Designing Fair & Tamper-Proof Dispute Resolution

Problem:
Building a validator-based system that’s fair, resistant to Sybil attacks, and aligned with user incentives was challenging. Simply allowing anyone to vote could lead to collusion or manipulation.

Solution:
We introduced a staking requirement for validators — only users with a minimum stake could participate in voting. This disincentivizes bad actors and aligns validator interests with the platform’s integrity. We also implemented slashing for validators who consistently vote against the consensus.


⚠️ 2. Preventing Front-Running & Double Listings

Problem:
Onchain marketplaces are prone to front-running (bots buying before humans) or repeated listing of the same fake item under different addresses.

Solution:
We added listing fingerprints (hashes) and timestamp locks to prevent immediate relisting. Each product listing is associated with a unique hash generated from item details + seller wallet + timestamp, making duplicates detectable.


⚠️ 3. Ensuring Gas-Efficient Escrow Logic

Problem:
Initial escrow logic involved multiple contract calls (listing, buying, staking, dispute trigger), which resulted in high gas usage.

Solution:
We modularized the contract logic but optimized storage and reduced state updates using minimal proxies and struct packing. We also merged buyer and seller interactions into batched transactions where possible.


⚠️ 4. UX for Validator Voting Flow

Problem:
Validator voting required a balance between decentralization and ease-of-use. We noticed confusion among test users on how/when they could vote.

Solution:
We added real-time UI prompts and status badges using frontend state management (e.g., Zustand or Redux), letting validators know when they’re eligible to vote and what the product images look like side-by-side.


Every challenge we solved made Crailo more secure, robust, and user-friendly — bringing us closer to a safer onchain resale economy.

Tracks Applied (2)

Best Use of MongoDB Atlas

Using MongoDB to store KYC Details of a User
Major League Hacking

Major League Hacking

Build for Core Connect Global Buildathon

We building to help Core Ecosystem onboard a resale marketplace to their chain.
Core DAO

Core DAO

Cheer Project

Cheering for a project means supporting a project you like with as little as 0.0025 ETH. Right now, you can Cheer using ETH on Arbitrum, Optimism and Base.

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