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How to build Escrow service with Lovable?

Learn how to build a secure escrow service with Lovable. Our step-by-step guide shows you best practices for developing transparent, reliable transactions.

Matt Graham, CEO of Rapid Developers

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How to build Escrow service with Lovable?

 
Setting Up Your Lovable Project Structure
 

  • Create a new project in Lovable called "Escrow Service with Lovable". Because Lovable is a no-code tool, all changes are made directly in its built-in editor.
  • Create the following files in your project:
    • config.js – This file will load the dependencies and configuration settings.
    • escrowService.js – Here you will write the core escrow logic (deposit, release, refund transactions).
    • main.js – This file acts as the entry point and integrates the escrow service into your application.

 
Adding and Including Dependencies
 

Since Lovable does not offer a terminal, you need to imitate dependency installation by including the required libraries in your configuration file. For example, if you need libraries to simulate HTTP request handling and a unique ID generator, insert the following code into your config.js file:


// Imitate dependency loading for Lovable; Lovable will automatically recognize these declarations.
const httpLibrary = require('http'); // Simulated HTTP module for handling requests
const uuid = require('uuid');        // Module to generate unique IDs for escrow transactions

// Export dependencies for use in other parts of the project.
module.exports = {
  httpLibrary,
  uuid
};
  • Make sure the above code is saved inside your config.js file in the Lovable editor.

 
Building the Escrow Service Logic
 

In escrowService.js, you will implement the functions that control how the escrow behaves. Below is an example of how to structure the code to handle escrow operations such as deposit, release, and refund. Insert this snippet into your escrowService.js file:


// Import the dependencies
const { uuid } = require('./config');

// In-memory storage for escrow transactions (for demonstration purposes)
let escrowTransactions = {};

// Function to create a new escrow deposit
function depositFunds(amount, sender, receiver) {
  const transactionId = uuid.v4();
  escrowTransactions[transactionId] = {
    id: transactionId,
    amount,
    sender,
    receiver,
    status: 'pending'
  };
  return escrowTransactions[transactionId];
}

// Function to release funds from escrow
function releaseFunds(transactionId) {
  if (escrowTransactions[transactionId] && escrowTransactions[transactionId].status === 'pending') {
    escrowTransactions[transactionId].status = 'released';
    return escrowTransactions[transactionId];
  }
  throw new Error('Transaction not found or already processed.');
}

// Function to refund the depositor
function refundFunds(transactionId) {
  if (escrowTransactions[transactionId] && escrowTransactions[transactionId].status === 'pending') {
    escrowTransactions[transactionId].status = 'refunded';
    return escrowTransactions[transactionId];
  }
  throw new Error('Transaction not found or already processed.');
}

// Export the escrow service API
module.exports = {
  depositFunds,
  releaseFunds,
  refundFunds
};
  • This code snippet creates three functions:
    • depositFunds – Initializes an escrow record with a unique ID and sets its status to pending.
    • releaseFunds – Changes the escrow status to released when funds should be sent to the receiver.
    • refundFunds – Changes the escrow status to refunded when returning funds to the sender.

 
Integrating the Escrow Service into Your Application
 

In your main.js file, integrate the escrow service functions by creating simple endpoints. Lovable projects use the built-in HTTP module (or similar event listeners) instead of a terminal command. Insert the following code into main.js:


// Import the HTTP library and escrow service
const { httpLibrary } = require('./config');
const escrowService = require('./escrowService');

// Create a simple HTTP server
httpLibrary.createServer((req, res) => {
  // Simple routing based on URL
  if (req.url === '/deposit' && req.method === 'POST') {
    let body = '';
    req.on('data', chunk => {
      body += chunk.toString(); // Convert Buffer to string
    });
    req.on('end', () => {
      const { amount, sender, receiver } = JSON.parse(body);
      const transaction = escrowService.depositFunds(amount, sender, receiver);
      res.writeHead(200, {'Content-Type': 'application/json'});
      res.end(JSON.stringify({ status: 'success', transaction }));
    });
  } else if (req.url === '/release' && req.method === 'POST') {
    let body = '';
    req.on('data', chunk => {
      body += chunk.toString();
    });
    req.on('end', () => {
      const { transactionId } = JSON.parse(body);
      try {
        const transaction = escrowService.releaseFunds(transactionId);
        res.writeHead(200, {'Content-Type': 'application/json'});
        res.end(JSON.stringify({ status: 'released', transaction }));
      } catch (err) {
        res.writeHead(400, {'Content-Type': 'application/json'});
        res.end(JSON.stringify({ error: err.message }));
      }
    });
  } else if (req.url === '/refund' && req.method === 'POST') {
    let body = '';
    req.on('data', chunk => {
      body += chunk.toString();
    });
    req.on('end', () => {
      const { transactionId } = JSON.parse(body);
      try {
        const transaction = escrowService.refundFunds(transactionId);
        res.writeHead(200, {'Content-Type': 'application/json'});
        res.end(JSON.stringify({ status: 'refunded', transaction }));
      } catch (err) {
        res.writeHead(400, {'Content-Type': 'application/json'});
        res.end(JSON.stringify({ error: err.message }));
      }
    });
  } else {
    res.writeHead(404, {'Content-Type': 'text/plain'});
    res.end('Route not found');
  }
}).listen(8080, () => {
  console.log('Escrow Service is listening on port 8080');
});
  • This file creates a simple HTTP server that listens for POST requests on three endpoints:
    • /deposit – To initialize an escrow deposit.
    • /release – To release the funds when conditions are met.
    • /refund – To refund the funds to the sender.
  • The code processes incoming JSON payloads, calls the appropriate escrow function, and returns a JSON response.

 
Testing Your Escrow Service
 

  • In Lovable’s built-in preview or simulator, trigger the HTTP endpoints by sending POST requests with the corresponding JSON payload. For example:
    • POST to /deposit with:
      
      {
        "amount": 1000,
        "sender": "Alice",
        "receiver": "Bob"
      }
              
    • POST to /release with:
      
      {
        "transactionId": "the-uuid-returned-from-deposit"
      }
              
    • POST to /refund with:
      
      {
        "transactionId": "the-uuid-returned-from-deposit"
      }
              
  • If the endpoints return the correct JSON responses according to the escrow state, your implementation is working properly.

 
Deploying Your Escrow Service
 

  • After testing and confirming your escrow service works as expected, save all your files in Lovable.
  • Since Lovable runs your project directly in its built-in environment, each save automatically updates the live version of your application.
  • Monitor the built-in console provided by Lovable for any log messages (like "Escrow Service is listening on port 8080") to confirm that your service is operational.

 
Using the Escrow Service in Production
 

  • Integrate Lovable’s project URL with your front end or external applications. In your front end code, you can now interact with endpoints like /deposit, /release, and /refund to manage escrow transactions.
  • Ensure you handle errors returned by the service appropriately and secure your API endpoints if exposing them publicly.

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How to build an Escrow service with Lovable?


const express = require('express');
const bodyParser = require('body-parser');
const mongoose = require('mongoose');

mongoose.connect('mongodb://localhost:27017/escrowDB', {
  useNewUrlParser: true,
  useUnifiedTopology: true
});

const EscrowSchema = new mongoose.Schema({
  buyer: { type: String, required: true },
  seller: { type: String, required: true },
  amount: { type: Number, required: true },
  asset: { type: String, required: true },
  status: { type: String, enum: ['pending', 'confirmed', 'released'], default: 'pending' },
  createdAt: { type: Date, default: Date.now },
  updatedAt: { type: Date, default: Date.now }
});

const Escrow = mongoose.model('Escrow', EscrowSchema);

const app = express();
app.use(bodyParser.json());

app.post('/api/escrow', async (req, res) => {
  try {
    const escrow = new Escrow(req.body);
    const savedEscrow = await escrow.save();
    res.status(201).json({ success: true, escrow: savedEscrow });
  } catch (error) {
    res.status(500).json({ success: false, error: error.message });
  }
});

app.put('/api/escrow/:id/confirm', async (req, res) => {
  try {
    const escrow = await Escrow.findById(req.params.id);
    if (!escrow) return res.status(404).json({ success: false, message: 'Escrow not found' });
    escrow.status = 'confirmed';
    escrow.updatedAt = new Date();
    const updatedEscrow = await escrow.save();
    res.json({ success: true, escrow: updatedEscrow });
  } catch (error) {
    res.status(500).json({ success: false, error: error.message });
  }
});

app.put('/api/escrow/:id/release', async (req, res) => {
  try {
    const escrow = await Escrow.findById(req.params.id);
    if (!escrow) return res.status(404).json({ success: false, message: 'Escrow not found' });
    if (escrow.status !== 'confirmed') {
      return res.status(400).json({ success: false, message: 'Escrow must be confirmed before release' });
    }
    escrow.status = 'released';
    escrow.updatedAt = new Date();
    const updatedEscrow = await escrow.save();
    res.json({ success: true, escrow: updatedEscrow });
  } catch (error) {
    res.status(500).json({ success: false, error: error.message });
  }
});

app.listen(3000, () => {
  console.log('Escrow service is running on port 3000');
});

How to verify escrow transactions using Lovable API


const express = require('express');
const axios = require('axios');
const bodyParser = require('body-parser');
const mongoose = require('mongoose');

// Assume Escrow model is defined in './models/Escrow'
const Escrow = require('./models/Escrow');

const app = express();
app.use(bodyParser.json());

app.post('/api/escrow/verify', async (req, res) => {
  try {
    const { escrowId, transactionId } = req.body;
    
    // Call external Lovable API to retrieve transaction details
    const response = await axios.get(`https://api.lovable.io/v1/transactions/${transactionId}`, {
      headers: { 'Authorization': 'Bearer YOUR_LOVABLE_API\_TOKEN' }
    });

    if (response.data.status === 'confirmed') {
      // Retrieve the escrow record and update its status to confirmed
      const escrow = await Escrow.findById(escrowId);
      if (!escrow) {
        return res.status(404).json({ success: false, message: 'Escrow not found' });
      }
      escrow.status = 'confirmed';
      escrow.updatedAt = new Date();
      const updatedEscrow = await escrow.save();
      return res.status(200).json({ success: true, escrow: updatedEscrow });
    } else {
      return res.status(400).json({ success: false, message: 'Transaction not confirmed on Lovable' });
    }
  } catch (error) {
    return res.status(500).json({ success: false, error: error.message });
  }
});

app.listen(3001, () => {
  console.log('Escrow verification service running on port 3001');
});

How to Build an Escrow Dispute Resolution Service with Lovable and Ethers.js


const express = require('express');
const axios = require('axios');
const { ethers } = require('ethers');
const Escrow = require('./models/Escrow');

const app = express();
app.use(express.json());

const provider = new ethers.providers.JsonRpcProvider('http://localhost:8545');
const escrowContractAddress = '0xYourEscrowContractAddress';
const escrowABI = [
  // Insert your contract ABI here
];
const signer = provider.getSigner();
const escrowContract = new ethers.Contract(escrowContractAddress, escrowABI, signer);

app.post('/api/escrow/dispute-resolution', async (req, res) => {
  try {
    const { escrowId, disputeId } = req.body;

    const lovDisputeResponse = await axios.get(`https://api.lovable.io/v1/disputes/${disputeId}`, {
      headers: { 'Authorization': 'Bearer YOUR_LOVABLE_API\_TOKEN' }
    });

    if (!lovDisputeResponse.data.outcomeFinalized) {
      return res.status(400).json({ success: false, message: 'Dispute outcome is not finalized yet.' });
    }

    const escrow = await Escrow.findById(escrowId);
    if (!escrow) {
      return res.status(404).json({ success: false, message: 'Escrow record not found.' });
    }

    let tx;
    if (lovDisputeResponse.data.outcome === 'seller\_favored') {
      tx = await escrowContract.releaseFunds(escrowId);
      escrow.status = 'released';
    } else if (lovDisputeResponse.data.outcome === 'buyer\_favored') {
      tx = await escrowContract.refundBuyer(escrowId);
      escrow.status = 'refunded';
    } else {
      return res.status(400).json({ success: false, message: 'Unexpected dispute outcome.' });
    }

    await tx.wait();
    escrow.updatedAt = new Date();
    await escrow.save();

    res.status(200).json({ success: true, message: 'Dispute resolved and funds processed.', txHash: tx.hash });
  } catch (error) {
    res.status(500).json({ success: false, error: error.message });
  }
});

app.listen(4000, () => {
  console.log('Dispute resolution service is running on port 4000');
});

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Connect with our team to unlock the full potential of no-code solutions with a no-commitment consultation!

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Matt Graham, CEO of Rapid Developers

Book a call with an Expert

Starting a new venture? Need to upgrade your web app? RapidDev builds application with your growth in mind.

Book a free No-Code consultation

Best Practices for Building a Escrow service with AI Code Generators

 
Understanding the Escrow Service and AI Code Generators
 

  • An escrow service acts as a trusted third party that holds funds or assets until particular conditions are met. This guide focuses on building such a service with additional AI-driven code generators to streamline parts of the development.
  • AI code generators are tools that automatically generate code based on given requirements, reducing manual coding and accelerating development.
  • This guide is designed for non-technical persons, providing clear steps and explanations to build, secure, and deploy an escrow service.

 
Prerequisites and Preparation
 

  • Basic understanding of financial transactions and the purpose of escrow.
  • An account on a development platform (e.g., GitHub or any hosting service) to manage code.
  • Access to an AI code generator tool. Many open-source options and commercial products are available.
  • Familiarity with basic coding concepts, though this guide explains concepts in plain language.

 
Defining Escrow Service Requirements
 

  • Determine the roles that will interact with the service, such as the buyer, seller, and arbitrator.
  • Outline the conditions for releasing funds, such as delivery confirmation or dispute resolution.
  • Ensure compliance with legal and regulatory requirements specific to escrow transactions.

 
Selecting an AI Code Generator
 

  • Research available AI code generators that can help create backend services. Look for tools that support the programming language you plan to use (e.g., Python, Node.js).
  • Choose one that allows customization and integration with third-party APIs.
  • Review documentation and community feedback to ensure the tool is reliable.

 
Designing the Escrow Service Architecture
 

  • Decide on a modular architecture that separates the core payment processing, condition management, and dispute resolution logic.
  • Plan for integration points with external systems such as payment gateways and notification services.
  • Create a high-level diagram to visualize components including:
    • Frontend for user interaction
    • Backend server handling business logic
    • Database for storing escrow records and transaction histories
    • API endpoints for interacting with the AI code generator

 
Implementing the Escrow Service with AI Code Generators
 

  • Start by using the AI code generator to scaffold the base structure of your application. Provide a clear prompt such as “Generate a secure REST API for an escrow service with endpoints for fund deposit, condition checking, and withdrawal.”
  • The AI tool might produce code that looks similar to:
    
    from flask import Flask, request, jsonify
    
    

    app = Flask(name)

    In-memory storage for escrow transactions (for demo purposes)

    escrow_transactions = {}

    @app.route('/deposit', methods=['POST'])
    def deposit():
    data = request.json
    transaction_id = data.get('transaction_id')
    escrow_transactions[transaction_id] = {'status': 'pending', 'amount': data.get('amount')}
    return jsonify({'transaction_id': transaction_id, 'status': 'pending'})

    @app.route('/release', methods=['POST'])
    def release():
    data = request.json
    transaction_id = data.get('transaction_id')
    if transaction_id in escrow_transactions:
    escrow_transactions[transaction_id]['status'] = 'released'
    return jsonify({'transaction_id': transaction_id, 'status': 'released'})
    return jsonify({'error': 'transaction not found'}), 404

    if name == 'main':
    app.run(host='0.0.0.0', port=5000)



  • Review the generated code, and customize it according to your detailed requirements. Validate that all endpoints behave as intended.

  • Incorporate additional logic such as:

    • Multi-factor authentication for secure access

    • Transaction logging for audits

    • Integration with email/SMS services for notifications


 
Integrating AI Generated Code into Your Project
 

  • Create a version control repository to manage code changes and integration of AI-generated portions.
  • Merge the AI-generated components with your existing service modules, ensuring that all business logic and security features are aligned.
  • Perform code reviews, ideally with a developer, to check for any flaws or potential security vulnerabilities introduced by automated code generation.

 
Implementing Security Best Practices
 

  • Establish authentication and authorization for all endpoints to prevent unauthorized access.
  • Use HTTPS to encrypt data in transit between the client and server.
    • Add SSL/TLS certificates through your hosting provider.
  • Implement input validation and parameter sanitization in all API endpoints.
  • Plan for regular security audits and update dependencies and libraries as needed.

 
Testing the Escrow Service Functionality
 

  • Use testing frameworks (like pytest for Python or Mocha for Node.js) to create unit tests that verify each function of the escrow service.
  • Conduct integration tests that simulate a complete escrow transaction, ensuring that funds are held, conditions are verified, and funds are released properly.
  • Engage in stress testing and perform security testing, such as penetration tests, to validate the robustness of the system.

 
Deployment and Monitoring
 

  • Select a cloud provider or hosting service that meets your service requirements. Configure deployment scripts as needed.
  • Deploy the escrow service, ensuring that the server is set up to bind to a designated port and that environment variables are properly managed.
  • Implement monitoring and logging solutions to track transactions and capture any errors or suspicious activities.
  • For example, using a tool like Docker, you may create a Dockerfile as follows:
    
    FROM python:3.9-slim
    
    

    WORKDIR /app
    COPY requirements.txt requirements.txt
    RUN pip install -r requirements.txt
    COPY . .
    EXPOSE 5000
    CMD ["python", "app.py"]



  • Regularly update and improve the service based on user feedback and observed performance metrics.

 
Maintaining and Evolving the Service
 

  • Establish a process for handling user support and dispute resolution.
  • Integrate user analytics to understand service usage and improve the overall experience.
  • Plan a maintenance schedule that includes backing up data, updating code, and testing security patches.
  • Continuously review AI code outputs to ensure they stay aligned with evolving business requirements and security standards.

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