Midnight Escrow System

Decentralized escrow system built on the Midnight Network using Compact smart contracts. The escrow contract enables secure, trustless transactions by holding funds in escrow until conditions are met.

Key Features

• Create Escrows: Deposit funds and assign them to a contributor using their ZswapCoinPublicKey address
• Release Funds: Release escrowed funds to the designated contributor
• State Management: Track escrow status (active, released, refunded)
• Privacy-Preserving: Built on Midnight Network with zero-knowledge proofs for transaction privacy
• Treasury Management: Secure fund storage using QualifiedCoinInfo

How It Works

1. Create: A user creates an escrow by depositing funds and specifying a contributor address. The contract stores the funds in its treasury and assigns a unique escrow ID.

2. Release: When conditions are met, the escrow can be released, transferring the funds to the designated contributor address.

3. State Tracking: Each escrow maintains its state (active → released), allowing for transparent tracking of all escrow transactions.

Quick Start

1. Install Dependencies

yarn install

2. Fetch ZK Parameters

• Navigate to the cli folder:

cd packages/cli

• Run zk-params script for proof server:

./fetch-zk-params.sh

This downloads all required ZK parameters (k=10 to k=17) to .cache/midnight/zk-params/.

3. Configure Environment Variables

For Testnet:

• Navigate to the ui folder

cd packages/ui

• Add the .env variables

echo "VITE_NETWORK_ID=TestNet
VITE_LOGGING_LEVEL=trace" > .env

For Standalone (Local Development):

• Navigate to the ui folder

cd packages/ui

• Add the .env variables (use Undeployed as the Network ID for local development)

echo "VITE_NETWORK_ID=Undeployed
VITE_LOGGING_LEVEL=trace" > .env

4. Build All Packages

yarn build:all

This compiles the contract, builds the API, and builds the UI.

Note: This project uses Compact 0.24.0 for contract compilation.

5. Start Infrastructure

Choose one option:

Option A: Testnet (connects to Midnight public testnet)

cd packages/cli && docker compose -f testnet.yml up

Option B: Standalone (runs your own local network)

cd packages/cli && docker compose -f standalone.yml up

Ports:

• Node: 9944
• Indexer: 8088
• Proof Server: 6300

6. Configure Wallet

• Open Midnight Lace Wallet
• Go to Settings → Network
• Select:
  • TestNet for Option A
  • Undeployed for Option B (Standalone infrastructure)

Lace Wallet (Other versions)

If you hit issues with Preview, install the legacy Lace Wallet extension:

1. Sign in to download:

   • Lace Wallet versions

2. Download .crx version 2.34.0.

3. In Chrome, open chrome://extensions.

4. Enable Developer mode (top-right).

5. Click Load unpacked and select the extracted extension folder.

After installing, set the Lace Wallet to Undeployed and set the Proof Server to Local.

7. Deposit to Wallet (Standalone only)

If using Standalone infrastructure, deposit to your wallet address:

• Go to the cli folder:

cd packages/cli

• Run the deposit command to receive Midnight test tokens (tDUST), replace mn_shield-addr_undeployed... with your Undeployed network address:

yarn deposit mn_shield-addr_undeployed...

8. Start Development Server

cd packages/ui && yarn start

Open http://localhost:8080 in your browser.

Root Scripts

yarn build:all                        # Build everything
yarn deposit <receiverAddress>        # Deposit to wallet (standalone mode)

Project Structure

escrow/
├── packages/
│   ├── contract/     # Escrow Compact contract
│   ├── api/          # API layer
│   ├── ui/           # React frontend
│   └── cli/          # Infrastructure & CLI tools
│       ├── standalone.yml  # Local network compose
│       ├── testnet.yml     # Testnet compose
│       └── src/            # Funding scripts
├── compact/          # Compact compiler
└── .cache/           # ZK params (gitignored)

License

This project is licensed under the Apache License 2.0. See the LICENSE file for details.

Contributing

We welcome contributions! Please follow these guidelines:

1. Fork the repository and create a feature branch
2. Make your changes following the existing code style
3. Test thoroughly - ensure all builds pass and the contract works as expected
4. Submit a pull request with a clear description of your changes

---

×

Powered by MeshJS in partnership with Socious

Built with ❤️ on Midnight Network