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🔐 Privacy-First AI Escrow Commerce dApp

Built for Fortify Labs Web3 Startup Studio by TZ APAC

🚨 Problem Statement

Modern e-commerce platforms require users to share excessive personal information:

Full name

Email address

Phone number

Bank / card details

Delivery and identity data

This centralized data is often:

Stored indefinitely

Shared or sold to third-party companies

Used for targeted ads, spam, and unsolicited calls

As a result, users lose:

❌ Privacy

❌ Data ownership

❌ Control over refunds and disputes

Trust is forced, not earned.

💡 Solution Overview

This project introduces a privacy-first, wallet-based e-commerce system where:

Your crypto wallet address is your identity.

No signup. No personal details. No centralized user database.

🧠 Core Innovation 1️⃣ Wallet-Only Identity

Users connect a crypto wallet

The wallet address acts as the sole identity

No email, phone number, name, or KYC required

2️⃣ AI-Driven Transaction Risk Assessment

An AI model evaluates every transaction and decides whether to:

✅ Auto-approve payment

⏸️ Hold funds for verification

🔄 Allow refund

❌ Reject suspicious transactions

This protects both buyers and sellers without exposing identity data.

3️⃣ Smart Contract Escrow

Funds are locked in an escrow smart contract

Payment release depends on AI decision + transaction conditions

Eliminates blind trust between buyer and seller

🔄 How the System Works

User connects wallet

User places an order

Order data is sent to the AI risk engine

AI classifies the transaction risk

Smart contract decides:

Release payment

Hold funds

Allow refund

Reject transaction

User can view and manage all orders using only the wallet address

🤖 AI Risk Engine

The AI model analyzes transaction patterns such as:

Order amount

User history

Dispute signals

Behavioral indicators

The goal is fraud prevention without identity exposure.

AI output directly influences escrow behavior.

🔐 Why This Is Different

Traditional E-commerce This dApp Email + phone required Wallet only Bank/card details Crypto escrow Centralized user data No user database Manual dispute handling AI-assisted decisions Platform trust required Trustless smart contracts

🧱 Tech Stack

Frontend

React (Vite)

Ethers.js

WalletConnect / MetaMask

Backend

Node.js (Express)

AI inference service (FastAPI)

REST API for order flow

Blockchain

Solidity smart contracts

Hardhat

Escrow + ERC-20 token (MNEE)

Etherlink / Cronos compatible

AI

Python

Scikit-learn / XGBoost

Pickle-based trained risk model

🛠️ Running Locally

1️⃣ Clone Repository

git clone https://github.com/Outlier1217/.git cd

2️⃣ Install Dependencies

Backend cd backend npm install

AI Service cd ai python3 -m venv venv source venv/bin/activate pip install -r requirements.txt

Frontend cd frontend npm install

3️⃣ Environment Variables

Create .env in project root:

PRIVATE_KEY=your_wallet_private_key RPC_URL=https://node.shadownet.etherlink.com

4️⃣ Deploy Smart Contracts npx hardhat run scripts/deploy.js --network etherlinkShadownet

5️⃣ Distribute Test Tokens npx hardhat run scripts/distribute-tokens.js --network etherlinkShadownet

6️⃣ Start Services AI Service uvicorn agent:app --host 127.0.0.1 --port 8000

Backend node server.js

Frontend npm run dev

🧪 Testing Network

Etherlink Shadownet Testnet

RPC: https://node.shadownet.etherlink.com

Chain ID: 127823

Currency: XTZ

Faucet: https://shadownet.faucet.etherlink.com

Explorer: https://shadownet.explorer.etherlink.com

🎯 Vision

This project demonstrates how:

E-commerce can exist without sacrificing privacy

AI can enhance trust instead of exploiting data

Wallet-based identity can replace centralized accounts

The long-term vision is a fully decentralized, privacy-preserving digital commerce ecosystem.

🏆 Hackathon Context

This project was built as part of:

Fortify Labs Web3 Startup Studio by TZ APAC

Focused on:

Real-world Web3 adoption

Privacy-first architecture

AI + Blockchain convergence

👤 Author

Mustak Aalam Web3 Developer | AI Research Enthusiast GitHub: https://github.com/Outlier1217

About

AI-powered Web3 escrow system for secure digital commerce, combining smart contracts, AI risk assessment, and admin verification workflows. Built for Fortify Labs Web3 Startup Studio by TZ APAC.

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