In the protocol’s original design, the platform’s interaction with the SCEA was via a mediator attribute, granted permission by the owner to initiate transactions by locking funds in escrow, and also confirm transactions in the event of a dispute. However, having a single entity responsible for both order initiation and mediation introduced risks of overexposure and overdependence on a single point of failure.

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Separation of Concerns

To enhance the system’s security and decentralization, two separate entities, each with different private keys, are now responsible for initiation and mediation respectively.

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Initiator

  • The initiator is now solely responsible for order initiation and locking funds in escrow.
  • Users grant the initiator permission to initiate transactions and lock their funds in escrow.
  • This separation ensures that the initiator’s actions are limited to the transaction initiation phase, reducing the risk of overexposure.

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Mediator

  • The mediator handles order confirmation and the resolution of disputes.
  • In cases of disputes, the mediator confirms the orders and transfers the tokens to the appropriate party (buyer or seller).
  • The mediator operates with a separate private key, ensuring a clear distinction and independence from the initiator.