Dual-Mode Transfer System

Amanah's transfer system provides two distinct methods for sending funds: direct transfers between registered users and an escrow-based system for sending funds to unregistered users. This dual-mode approach ensures maximum flexibility while maintaining security and ease of use.

How Phone Numbers Work as Identity

In the Amanah system, phone numbers serve as a fundamental identity layer:

1. When you register on the Amanah app with your email, an embedded account is created for you
2. You'll then verify your phone number, which becomes your base identity in the system
3. This phone number can be used by others to send you funds, even before you've created an account

This approach makes sending money as simple as sending a text message - all you need is someone's phone number.

Direct Transfers Between Registered Users

For users already registered on the Amanah platform, transfers work through a straightforward direct mechanism:

• Find registered users through their in-app username or phone number
• When both sender and receiver have Amanah accounts, funds move directly between self-custodial wallets
• No escrow mechanism required, providing the fastest and most efficient transfer experience
• Transactions are completed instantly on the Solana blockchain

Escrow-Based Transfers for Unregistered Users

The escrow system comes into play when sending funds to someone who may not yet have an Amanah account:

• Send funds using just a recipient's phone number
• Removes the barrier of requiring pre-registration
• Creates a secure holding area for funds until the recipient claims them
• Provides safety and reversibility when needed

Think of it as a safety net that makes Amanah accessible to everyone, even if they haven't joined the platform yet.

How the Escrow System Works

Smart Contract Design

The escrow system uses a relationship-based smart contract on the Solana blockchain:

1. When a user sends money to an unregistered phone number, the system creates a unique escrow account specific to this sender-receiver pair
2. This account serves as a secure holding area for funds until the recipient claims them
3. The same escrow account can be reused for future transfers between the same parties

For example, if Ahmad wants to send money to Fatima, and he's unsure whether Fatima has an Amanah account, he can use Fatima's phone number. The system creates an escrow account specifically for transfers between Ahmad and Fatima.

Transfer Flow for Unregistered Users

1. Sender Initiation

   • Sender enters recipient's phone number and amount
   • System checks if recipient has an existing Amanah account
   • If not, it proceeds with the escrow route

2. Escrow Creation and Funding

   • System creates a new escrow account (for first-time transfers) or uses an existing one
   • The specified amount moves from sender's wallet to this escrow account

3. Recipient Notification

   • System generates a unique claim link sent to recipient's phone number
   • Link allows recipient to either:
     • Create a new Amanah account and claim funds
     • Log in to existing account if not found by phone number
     • Claim funds directly to a new self-custodial wallet

4. Claim Process

   • Recipient follows claim link
   • Verifies phone number
   • Connects to existing account or creates new one
   • Claims funds, moving money from escrow to their wallet

Security Controls

Until the recipient claims the funds, the sender maintains withdrawal rights. This provides protection against:

• Incorrect phone numbers
• Situations where the recipient chooses not to claim the funds
• Potential fraud or mistakes

For instance, if Ahmad sends 50 USDC to what he thinks is Fatima's number, but Fatima never claims it, Ahmad can retrieve his funds.

Transition to Direct Transfers

Once a recipient registers and claims their first escrow transfer, future transfers can occur through the direct transfer system if the sender uses their Amanah username or phone number. The escrow account remains available but isn't needed for future transfers when both parties are registered users.