Oath : An incorruptible dispute resolution ecosystem powered by blockchain
Introduction:Challenges associated with modern day dispute resolution systems
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Disputes are inevitable and unavoidable constraints in virtually every existing relationship. Try as hard as one may, misunderstandings are bound to occur, regardless of the cohesive nature of existing bond between both parties. But ultimately, what matters most is the manner in which they are handled.
Sometimes, they are capable of inflicting irreparable damages to even the strongest of relationships; and other times, they tend to make them even stronger. Therefore, in mutually beneficial relationships, (mostly business relationships)both parties strive to settle disputes amicably in order to continue reaping the rewards of the said rapport.
Whilst some disputes can be settled amicably through consensual processes(negotiation,conciliation,agreement etc) a large portion of the others require adjudicative processes, (legal proceedings) in order to confer justice .
Adjudicative processes aren't without its own tailbacks however. Court settlements can take a great deal of time before judgement is passed due to adjournments,also, costs of hiring professional legal advocates are extremely high, and in a case whereby both disputants are okay with that, the issue of corruption and justice obstruction rears its ugly head once more .
Aristotle once said that "whoever controls the courts, controls the states". This affirms to the fact that legal systems are centralised ,with individuals at the helm of affairs. Such systems are very likely to be compromised by corruption and unfairness in proceedings.
Finally, the number of small businesses are scaling rapidly.Unlike bigger companies, they might rake in just a few hundreds or thousands of dollars in revenue. In case of a dispute involving such meagre sums, what method of resolution will be adopted in order to avoid the expenses,corruptibility and time drainage associated with modern day legal systems? .
Adjudicative processes aren't without its own tailbacks however. Court settlements can take a great deal of time before judgement is passed due to adjournments,also, costs of hiring professional legal advocates are extremely high, and in a case whereby both disputants are okay with that, the issue of corruption and justice obstruction rears its ugly head once more .
Aristotle once said that "whoever controls the courts, controls the states". This affirms to the fact that legal systems are centralised ,with individuals at the helm of affairs. Such systems are very likely to be compromised by corruption and unfairness in proceedings.
Finally, the number of small businesses are scaling rapidly.Unlike bigger companies, they might rake in just a few hundreds or thousands of dollars in revenue. In case of a dispute involving such meagre sums, what method of resolution will be adopted in order to avoid the expenses,corruptibility and time drainage associated with modern day legal systems? .
In this article, we shall be taking an extensive look at Oath, a blockchain based dispute resolution platform that harnesses the transparent nature of blockchain, coupled with the precision of smart contracts and a modified jury system to produce an efficient,reliable, incentivized and incorruptible dispute resolution ecosystem.
Oath: A Viable Dispute Resolution Ecosystem
Often times, disputes arise between transacting parties. As a result, it is advised that parties entering into a contract decide which means will be employed,should a dispute arise.
Oath proposes a unique solution to settling disputes amongst individuals and businesses by providing a platform which allows parties involved to enter into a smart contract which is designed to have a Oath arbitration system . Oath leverages a fresh from the box "Proof Of common sense" consensus mechanism which allows jurors preside over cases using their common sense, not necessitating any prior background experience in the contract field.
When setting up the Oath arbitration system, both parties are required to agree on certain factors which are :
Number of jurors: Jurors are group of individuals which are selected from the public to decide the outcome of a particular case. When entering into an Oathdesigned smart contract, transacting parties are required to select the number of jurors they want to preside over their disputes . They will also deposit a certain amount of Oath tokens which will be used to pay presiding jurors.
Category of court: The category of court allows Oath to select jurors which are experts in the said field in case of disputes. It is therefore necessary for parties involved to select a category, based on the kind of contract they are about to enter.
Outcome: Different options or possible outcomes are created for jurors to choose from after presiding over a dispute. These possible outcomes are agreed upon by parties while entering the contract. For example, in a land dispute settlement, possible outcomes may be :
- Grant A ownership of land
- Grant B ownership of land
- Sell land and split proceeds between parties A and B.
Upon provision of all these details,the Oath arbitration system is easily set up. In case of a dispute, disputants can easily file a report by the click of a button, whilst sending evidences to back their claims. To this effect, Oath immediately selects jurors in different parts of the world through a method which will be discussed in a later part of this article. If the dispute involves certain funds, the money is sent to an escrow account until a decision is reached by the jurors. On getting the evidence, jurors are given a specific time to analyse the situation and then make their decision by selecting one the possible outcomes stipulated in the contract.
The option most selected by jurors usually superceeds others and is carried out accordingly in the contract.
The option most selected by jurors usually superceeds others and is carried out accordingly in the contract.
Selection of jurors
Jurors are often selected based on categories specified in the smart contract. The categories stipulated by contracting parties usually highlights preference to jurors with a background experience in the field of contract,so as to enable them deliver precise and fair verdicts. Depending on the number of jurors stipulated in smart contract, more may be selected randomly via an Oath algorithm, without taking into account the preset juror category.
After selection, jurors are notified with details of the dispute, including the amount of Oath tokens they will be rewarded with for presiding over the case. Based on this information, they can either choose to accept or reject the case.
After selection, jurors are notified with details of the dispute, including the amount of Oath tokens they will be rewarded with for presiding over the case. Based on this information, they can either choose to accept or reject the case.
Arbitration
Jurors get rewarded for their work through arbitration fees which are paid by one or both parties (depending on stipulations in the smart contract).The reward system helps prevent bribery and corruption from infiltrating the ecosystem.
Appeals
Appeals are very common in dispute cases. Many times, one part feels dissatisfied with the judgement and proceeds to appeal. When this happens in Oath ecosystem, another case is reopened, and this time,with jurors of higher credit levels . In order to keep appeal levels in check, the appealing party is required to pay appeal fees and is limited to maximum of two appeals after which the verdict is sent to the smart contract.
Also, appeals are advantageous since jurors of appealed cases have their payments withheld, pending an explanation for their decisions.This leads to more efficient and precise rulings .
Appeals are very effective anti-bribery mechanism since logically, new jurors are kept in dark regarding previous verdicts .
Also, appeals are advantageous since jurors of appealed cases have their payments withheld, pending an explanation for their decisions.This leads to more efficient and precise rulings .
Appeals are very effective anti-bribery mechanism since logically, new jurors are kept in dark regarding previous verdicts .
Fairness through rankings and incentivized system
To ensure fairness in judgements, the ecosystem is built in such a way that jurors lose credit levels for dishonest rulings and gain for the opposite .
Credit levels are ranking systems which largely determines the probability of juror selection, as well as payment for ruling cases.
Credit levels are ranking systems which largely determines the probability of juror selection, as well as payment for ruling cases.
Use Case
John is the proud owner of Wash n' Folds Inc, a start-up company offering laundry services .In search of a logo to convey the company's services in a more visually appealing manner, John proceeds to hire Kennedy, a graphics designer on a popular freelancing platform to get the job done .They integrate their contract on Oath platform, selecting four jurors, category and some possible outcomes.
In a week's time, Kennedy is done with the job and sends it to John as agreed.When John tries to place his new logo on a large billboard, he realises that the image quality reduces when scaled to a large size .He then complains to Kennedy, who bluntly refuses to carry out any modifications on the task.
Immediately, he calls for a dispute on Oath, sending evidences showing negotiations with Kennedy, while Kennedy sends his to back his claims. The jurors ,who are also experts in graphics design examines evidences and discovers that John never requested a vector based logo (which does not lose quality on when scaled to larger dimensions) therefore, three jurors rules that Kennedy's pixel based image logo should stand while only one ruled against this .
According to the jurors, John did not give a perfect description of his choice of logo therefore, Kennedy's work was allowed to stand and his escrowed funds were released effectively .
According to the jurors, John did not give a perfect description of his choice of logo therefore, Kennedy's work was allowed to stand and his escrowed funds were released effectively .
Why Oath?
- Low costs associated
- Less time taken compared to court settlements
- Incentive based platform
- Keeps information of disputants private
- Less chances of justice obstruction
- Gives room for appealing
- Easy deployment of smart contracts through custom templates.
Conclusion
The need for a fast,secure and reliable dispute resolution mechanism,has never been so pronounced. The advent of the digital world means even more increase in number of business disputes since millions of transactions are carried out on a daily basis on the internet . These and many more challenges makes Oath a unique and a glaring solution to the problems in question .
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