Hackers.Market

Anti-coercion P2P escrow protocol with time-locked smart contracts & emergency stop mechanisms

Hackers.Market

Created At

Unite Defi

Project Description

Description

Hackers.Market is the world's first anti-coercion P2P escrow protocol that fundamentally reimagines how peer-to-peer transactions should work in a world where physical safety and digital security must coexist.


The Critical Problem We Solve

Traditional P2P trading platforms have a fatal flaw: once a bad actor gains physical control over a victim, they can force them to release escrowed funds regardless of whether the transaction was completed. This vulnerability has led to countless cases of robbery, extortion, and physical harm in offline P2P transactions, particularly in high-value cryptocurrency trades. Current escrow services, while providing basic fund protection, completely ignore this human element of physical safety.


Our Revolutionary Solution

Hackers.Market introduces a multi-layered defense system against coercion attacks through:

Time-Locked Fund Release System

  • Mandatory waiting periods (dynamically calculated based on transaction value, party reputation, and KYC levels) make immediate fund access impossible
  • Even under duress, victims cannot release funds instantly, making physical coercion economically irrational for attackers

Emergency Stop Mechanism

  • Panic code system allows victims to secretly trigger extended lock periods during threatening situations
  • Biometric authentication and secure panic code generation built into the platform Pattern detection prevents abuse while ensuring legitimate emergency activations

Factory-Pattern Smart Contract Architecture

  • Sellers deploy their own escrow contracts through our EscrowFactory, maintaining full responsibility for listings
  • Modular infrastructure with pluggable components for time-locks, dispute resolution, reputation scoring, and emergency handling EIP-7702 ready for future account abstraction and delegated escrow creation

Comprehensive Multi-DID Reputation System

  • Integration with 7+ decentralized identity providers (ENS, Lens, WorldID, BrightID, etc.) Multi-dimensional reputation scoring across trading history, dispute resolution, and KYC verification
  • Cross-platform reputation aggregation with time-decay mechanisms

Technical Implementation

Smart Contract Infrastructure:

  • EscrowFactory for deploying minimal proxy contracts
  • Individual EscrowImplementation contracts for each trade
  • Modular system with KYCModule, TimeLockModule, DisputeResolver, ReputationOracle, and - - EmergencyModule
  • Automated fund distribution and state management

Full-Stack Application:

  • Next.js 14 frontend with wagmi/viem for Web3 integration
  • Multi-chain balance management with unified dashboard
  • Real-time transaction monitoring with WebSocket connections
  • PWA support for mobile-first experience

Advanced Integrations:

  • 1inch: Complete integration of Fusion+, Fusion Protocol, Classic Swap, and Limit Order Protocol for optimal trade execution
  • Circle USDC/EURC: Multi-chain stablecoin infrastructure across 6+ chains with CCTP integration
  • Etherlink: L2 deployment for gas-efficient operations with 2-3 second finality
  • LayerZero OFT (post-hackathon): Omnichain governance token for cross-chain participation

Why This Matters

The global P2P trading market is projected to reach $84.75 billion by 2034, yet no platform currently addresses the fundamental security vulnerability of physical coercion. With the explosion of RWA tokenization (reaching $152 billion in 2024), the need for secure P2P trading infrastructure has never been more critical.

Hackers.Market isn't just another escrow service – it's a paradigm shift that makes P2P commerce truly safe for the first time. By combining cutting-edge blockchain technology with real-world safety mechanisms, we're building the foundation for a new era of trustless, coercion-resistant commerce where users can trade anything, anywhere, without fear.

Our platform supports multiple asset classes (crypto, RWAs, digital goods), operates across multiple chains, and provides a unified experience that makes complex cross-chain operations as simple as traditional single-chain transactions. With competitive 2.5% transaction fees and additional revenue streams from premium services, we're building a sustainable business that prioritizes user safety above all else.

How it's Made

Core Architecture: The Factory Pattern Revolution

We built Hackers.Market using a sophisticated factory pattern where sellers deploy their own escrow contracts through our EscrowFactory, maintaining full responsibility while benefiting from our security infrastructure. This approach reduces deployment costs by 90% using minimal proxy contracts (EIP-1167) and creates a modular system where each component can be upgraded independently.


The 1inch Integration Deep Dive

We implemented every single 1inch API to create the most comprehensive integration possible:

  • Fusion+ Protocol: Enables cross-chain escrow settlements with intent-based routing, allowing users to fund escrows from any chain and settle on another without manual bridging. Multi-Protocol Optimization: Our system intelligently routes between Fusion+, Fusion, and Classic Swap based on transaction urgency, liquidity availability, and gas costs. This ensures users always get the best execution price.

  • Advanced Trading Features: Built TWAP orders on top of 1inch's Limit Order Protocol that integrate with our anti-coercion time-locks, allowing gradual order execution that reduces price impact while maintaining security.


The Etherlink L2 Optimization

We deployed our entire infrastructure on Etherlink to leverage 2-3 second finality and 99% gas reduction. This makes micro-transactions viable and significantly improves user experience. We custom-optimized our time-lock calculations to account for Etherlink's faster block times.


Circle USDC/EURC Multi-Chain Infrastructure

Our Circle integration creates a unified balance system that aggregates USDC/EURC across all supported chains. Users see one balance and can pay from any chain - we handle all the complexity using Circle's Cross-Chain Transfer Protocol (CCTP). Fee payments work in any token through automatic 1inch swaps to USDC.


Frontend Technical Excellence

Built with Next.js 14 App Router, our frontend features:

  • Real-time WebSocket updates for escrow state changes
  • Biometric panic button activation using Web Authentication API
  • PWA support for mobile-first experience
  • Optimistic updates for instant UI feedback

The Innovative "Hacks"

  • Coercion Detection Algorithm: Analyzes on-chain patterns including sudden location changes, unusual timing, and failed release attempts to automatically detect potential coercion situations.
  • Ghost Transaction Feature: When users enter panic codes, we display a fake "successful" transaction while actually extending the lock period by 72 hours and alerting our security team.
  • Cross-Chain Reputation System: Novel approach that aggregates reputation scores across all chains without using oracles, calculating weighted scores based on chain activity and importance.
  • Instant Settlement Illusion: Shows users a "settled" status with countdown timer during the lock period, reducing anxiety while maintaining security.

Backend Infrastructure

We are gonna to build a custom multi-chain indexer using The Graph (post-hackathon) that maintains unified transaction history across 6+ chains. Our distributed panic button system uses Redis pub/sub for instant emergency broadcasts and Cloudflare Workers for edge-based detection. All evidence is stored immutably on IPFS for dispute resolution.


Performance Optimizations

Gas costs are minimized through storage packing, batch operations, and our minimal proxy pattern. Frontend performance is enhanced with Suspense boundaries for async loading, Service Workers for offline monitoring, and aggressive caching strategies.


Integration Symphony

Every sponsor technology amplifies our core mission:

  • 1inch handles complex DeFi routing behind simple "Send USDC" buttons
  • Circle provides stable, multi-chain currency infrastructure
  • Etherlink makes transactions affordable for everyone
  • LayerZero (planned) will enable truly omnichain governance

The magic of Hackers.Market is hiding all this complexity behind a simple interface. Users just click "Create Escrow" while we orchestrate cutting-edge Web3 technologies to keep them safe. We're not just building another DeFi protocol – we're solving a real-world safety problem that affects millions of P2P traders globally.

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