BANKEX Smart Justice for Dispute Resolution on Blockchain

Guest Author | May 24, 2018 | 12:01 pm
bankex
Sponsored

BANKEX Smart Justice for Dispute Resolution on Blockchain

Guest Author | May 24, 2018 | 12:01 pm

Top-50 FinTech Company BANKEX has launched BANKEX Smart Justice, an industry-leading dispute resolution platform to settle disagreements in the crypto world. The arbitration service, based on the law of large numbers and game theory, minimizes judicial errors and corruption, and could also have future practical applications in offline, everyday disagreements.

Blockchain-based smart contracts have already proven that they can successfully automate various functions. The smart contracts based on various pre-defined parameters acts as an electronic agreement for a range of transactions including services. While it introduces a transparent, more efficient process with a high degree of automation, it fails to address disputes between the parties involved in a transaction.

To tackle this problem, a team of developers at BANKEX have developed the BANKEX Smart Justice, which is a blockchain-based service that will help settle disagreements in the crypto space.

People have concerns over the human factors in the process of making transactions using cryptocurrencies, thereby slowing down the adoption of cryptos as a medium of exchange. Despite blockchain itself being decentralized and secured, no one can guarantee that smart contracts will be executed properly in accordance to the stated requirements of the deal.

Can A Smart Contract Guarantee the Quality of Service or Product Received?

Smart contracts are executed in automation, meeting the user’s needs by recording the terms and conditions that cannot be altered or deleted. Yet, users can’t escape the inevitable trap of the human factors. Or can they?

Let’s consider a scenario where Alice is a client, and Bob is the freelance. Alice, as a client, hires the service of Bob, the freelancer. The two parties sign a contract on the BANKEX’s Trust Service platform, so it can be recorded on their blockchain. However, for whatever reason, Alice is not satisfied with the quality of Bob’s service. In frustration, Alice files a dispute on the BANKEX Trust Services platform. Bob is then notified about Alice’s displeasure with his work and the action she has taken. Bob, on the other hand, believes that he did a good job and Alice’s claim are unfounded. How do they settle this problem?

BANKEX has developed a solution to this dilemma. They call it BANKEX Smart Justice, the essence of which is simple. It primarily is a voting system that is designed to settle various disputes over the transactions in the blockchain community.

The system provides designated arbitrators (51 in total), who get full access to the details dictated in the smart contract entered in to by the two parties. The two parties, in our example, Alice and Bob, can make an accusation and defend themselves by providing supporting evidence to their claims. These arbitrators are selected at random by its inbuilt algorithm to ensure fairness.

Smart Justice of the future?

Anyone who wants to can purchase a vote token and become an arbitrator in the BANKEX Smart Justice system.

So that outcomes are fair and mathematically approach expected standards,  Smart Justice decisions are made by a majority of votes from an arbitration panel of at least 29 –and up to 51– independent and randomly selected arbitrators. The quorum of 29 has been proven sufficient to approach the theoretically expected ratio of outcomes. Because the internet provides the technological opportunity to assemble a large number of independent Decision Makers to vote nearly simultaneously and in real time, the BANKEX Smart Justice system takes advantage of the Law of Large Numbers for consistently trustworthy voting outcomes.  Additionally, a monetary motivation will encourage decision-makers to eliminate emotional partiality, as only those who make a “winning” majority decision are remunerated.

The option to abstain will also prevent inadequate or incomplete disputes from being poorly adjudicated. The quorum of 29 voting arbitrators won’t be obtained until both parties present sufficient explanations.

Reputation – new currency of the future

Reputation is a highly valued quality in today’s world of brand consciousness and networking for global commerce, and it is even more critical in the decentralized sphere where it is impossible to conceal essential actions performed on the blockchain.

In a word, the BANKEX Smart Justice system is a solution with tremendous implications not only for dispute resolution, but for a more proactive, open, and honest approach to transactional behavior. This will lead to better business practices, less chaos and greater possibilities for cooperation.

Learn more about BANKEX at – https://bankex.com

 

NewsBTC is a news service that covers bitcoin news, technical analysis & forecasts for bitcoin and other altcoins. Here at NewsBTC, we are dedicated to enlightening people all around the world about bitcoin and other cryptocurrencies. We cover news related to bitcoin exchanges, bitcoin mining and price forecasts for various virtual currencies.

Get the app

Featuring live charts, price analysis, breaking news, currency converter and more. The only bitcoin app you need!