How Do Transactions Finalize on the Blockchain?

Q: How do transactions work on the blockchain in the CGS app?

Transactions on the CGS app use blockchain technology to ensure secure, transparent, and efficient payments. While purchases may appear instant, the process involves two stages to provide additional security and ensure fairness for both customers and growers.

Q: What are the two stages of transaction finalization?

1. Immediate Wallet Deduction:
   • When a customer makes a purchase, the amount is immediately deducted from their wallet.
   • At this stage, the transaction is considered "pending" rather than fully finalized. The funds are securely held in the system but not yet transferred to the grower.
2. Finalization After 7-Day Hold:
   • A 7-day refund period begins once the purchase is made. During this time, customers can report issues such as damaged or subpar produce.
   • After the 7-day period, if no disputes are raised, the funds are automatically released to the grower's account, finalizing the transaction.

Q: Why is there a 7-day hold period?

The 7-day hold ensures customer satisfaction and promotes trust within the CGS ecosystem. This period allows:

• Customers to inspect the quality of their purchases and request a refund if necessary.
• Growers to be protected by a clear, automated process that ensures timely payment for approved transactions.

Q: How does the blockchain improve this process?

The blockchain ensures every step of the transaction is secure, transparent, and immutable:

• Traceability: All transactions are recorded on a tamper-proof ledger.
• Efficiency: The system automates fund holding and release, eliminating manual errors.
• Fairness: Both parties can trust the process, knowing disputes are handled during the refund window.

Q: What happens if a refund is requested during the hold period?

If a customer requests a refund:

1. The funds remain in the system while the issue is reviewed.
2. If the refund is approved, the funds are returned to the customer’s wallet.
3. If no refund is approved, the funds proceed to the grower after the 7-day period.

Q: When does a grower receive payment?

Growers receive payment at the end of the 7-day hold period, provided no refund requests are raised. This ensures transactions are finalized only after customer satisfaction is confirmed.