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Journal : bit-tech

Ethereum-Based Escrow System to Reduce the Risk of Peer-to-Peer Payment Abuse Kumala, Yudhistira Nanda; Parlika, Rizky; Maulana, Hendra
bit-Tech Vol. 8 No. 3 (2026): bit-Tech
Publisher : Komunitas Dosen Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.32877/bt.v8i3.3667

Abstract

Peer-to-peer (P2P) payments facilitate rapid direct transactions but are frequently compromised by trust asymmetry, leading to substantial risks of non-delivery or non-payment. This study addresses these vulnerabilities by introducing a lightweight, deterministic escrow mechanism based on Ethereum smart contracts, specifically designed to bridge the regulatory gap in consumer protection. Unlike conventional escrow systems that rely on costly human intermediaries or complex decentralized autonomous organization (DAO) structures, the proposed "FairPay" model advances the state-of-the-art by offering a streamlined five-state lifecycle architecture comprising Created, Funded, WorkSubmitted, Released, and Refunded stages. The research prioritizes an analytical problem-solution flow, focusing on a state-machine design that enforces automated role-based restrictions. Methodological evaluation conducted on the Ethereum Sepolia testnet demonstrates a 100% functional success rate across all unit test scenarios. Furthermore, gas cost analysis reveals that the system is economically viable for granular transactions, with core operational functions maintaining a low execution overhead. Beyond operational success, the primary scholarly contribution lies in the design insight of balancing high cryptographic security with granular transaction accessibility, providing a scalable framework for the modern digital economy. However, the system currently assumes binary participant decisions for work verification, representing a transparency-oriented limitation in handling highly subjective service deliverables. Ultimately, this study demonstrates that algorithmic trust, mediated through a simplified state-machine, offers a more efficient and transparent alternative to existing high-complexity blockchain models, effectively resolving the tension between decentralized security and practical usability in P2P digital interactions.
Co-Authors Abidin Sulaiman Abrori, Merdin Risalul Achmad Heidhar Mubarok, Achmad Heidhar Achmad Yuneda Alfajr Agung Wibowo, Mochamad Ahmad Budi Trisnawan Ahmad Dendy Prasongko Putra Ahmad Maghfur’ Ali Akbar, Fawwaz Ali Akhlis Munazilin Akhlis Munazilin, Akhlis al hakim, Rais Alfajr, Achmad Yuneda Alif Ernanda Putra Alwin, Muhammad Izdihar Amir Muhammad Hakim Andreas Nugroho Sihananto Andry S, Firdaus Anggoro Cahyo Nugroho Anggreini, Diana Nur Anita Nusari Aqila Murodah Sutanto Ardiana Deka Maharani Ardika, Rendra Ardisty Palvelus Jumala Arianto, Chakra Satrya Pradana Putra Aris Pratama Arista Pratama Asif Faroqi Atmaja, Pratama Wirya Aulia N, Rayhan Auliya, Rahmat Avrie Akbar Prabowo Ayu Ithriah, Syurfah Basuki Rahmat Masdi Siduppa Benny Danendra Hadi Bima Rizqy Prasurya Bregsi Atingsari Julastri Bryan Benedict Bangun Budi Nugroho Budi Nugroho Caritta Elizabeth Chakra Satrya Pradana Putra Arianto Choirun Nisa Dandi Azaidane Devan Cakra Mudra Wijaya Devi Anugrah Putri Dewi Azizah Dhany Satya Hutama Didik U Pribadi, Didik U Didik Utomo Pribadi Dimas Rizward Hikmah Utomo Dino Rosanilo Yuswanto Dwi Rahmadewi, Cynthia Eka Maurita Maurita Emmil Yulianto Erayanti, Aninda Elsa Fadhli Shidqi Wiratama faradilla, yolla Faris Hirmar Pralas Fatwa Zuhri Diva Perdana Fedianto, Muhammad Helmi Satria Fernanda, Rifky Akhmad Fernanda, Rifky Akhmad Firmansyah, Fahrul Firza Prima Aditiawan Fitranda Ramadhana Gayuh Abdi Mahardika Hadiansyah Rachmawan Putra Haidar Ananta Kusuma Hakim, Arif Rahman Hamdi Indra Hanafi, Agus Heldian Lintang P Heri Khariono Heri Khariono Hermawan, Riky Hidayat Nur Tauhid Hidayat, Mochammad Fikri Hilman Fadlilah Lesmana Humam Maulana Tsubasanofa Ramadhan Humam Maulana Tsubasanofa Ramadhan Humania B, Nobel Ilham Asy’ari Ilham Krisdianta Siregar Ilham Pradika, Sunu Ilham Setia R Isfan Rachmad Ja'far Shodiq Jerry Ramadhani Cahyas Kartini Kartini Kartini Kartini Kemal Fahreza Jibran Jibran Khariono, Heri Kholilul Rachman Nur Manab Kumala, Yudhistira Nanda Lesmana, Hilman Fadlilah Lintang P, Heldian Luthfiyatul ‘Azizah M. Muharrom Al Haromainy M. Syahrul Munir, M. Syahrul M. Zaky Pria Maulana Malik, Gamar Ramadhani Maulana, Hendra Melinda Shilatil Fauziyah Merdin Risalul Abrori Miftakhoneki, Sufi Misbahul Munir Mochammad Fikri Hidayat Mochammad Zayyan Ramadhan Moh. Ainur Rofik Mohammad Idhom Muhamad Faizhal Musthafa Muhammad Agung Shobirin Muhammad Ghifari Alifian Muhammad Hakim, Amir Muhammad Helmi Satria Fedianto Muhammad Ilham Arzaki Muhammad Izdihar Alwin Muhammad Rafli Aulia Rojani Lutfi Muhammad Rizal Waskito Muhammad Romi Nasution Muhammad Suriansyah Munir, M Syahrul Mustafid Mustafid Nafa Nabila El Indri Nizam, M Miftahul Nobel Humania B Nur Cahyo, Arif Nur Manab, Kholilul Rachman Nurilhaq, Muhammad Sabilli Olivia i Anggun Permatasar Orissa, Dendy Fektor Parlika, Anjaya Perdana, Fatwa Zuhri Diva Prabowo, Avrie Akbar Pralas, Faris Hirmar Prayoga, Julio Cahya Pribadi, Didik U Putra Dwi Wira Gardha Yuniahans Putra, Ahmad Dendy Prasongko Putra, Alif Ernanda Putra, Hadiansyah Rachmawan Qonitah Jihan Nabilah R Rizal Isnanto R. Rizal Isnanto Rachman N.M., Kholilul Rahmat Auliya Ramadhan, Ferry Dzaky Rayhan Aulia N Rayhan Rizal Mahendra Rayhan Saneval Arhinza Retno Mumpuni Reza Achmad Gallanta Rifardi Taufiq Yufananda Rifky Akhmad Fernanda Rifky Akhmad Fernanda Riky Hermawan Rivaldy Setiawan, Rivaldy Rizky Ananda Ramadhan Rizqy Khoirul Waritsin Roiqoh, Aprinia Salsabila S. Gama, Nemicio de Salsa Pramudhita Agustiardani Sarirotul Latifah Satria, Vinza Hedi Setia R, Ilham Setiawan, Rienaldi Shahab, Muhammad Syaugi Shodiq, Ja'far Siregar, Ilham Krisdianta Steffanuel Pranatalie Krispriyanto Stevanus Frangky Handono Sunu Ilham Pradika Suriansyah, Muhammad Susy Rahmawati Syafriansyah, Muhammad Syahrul Munir Syalum Marsya Pruista Tasya Ardhian Nisaa’ Tegar Satria Kirana Teguh Sutanto Ummam, Mohamad Arel Intidhofatul Vito Fausta Majid Wahyu Syaifullah Jauharis Saputra Waskito, Muhammad Rizal Wifaqul Azmi, Muhammad Wijaya, Devan Cakra Mudra Wijaya, Devan Cakra Mudra Yoga Ari Tofan Yulianto, Emmil