A lack of arbitration contributes to several notable issues on the public blockchain. Financial disputes in the traditional economic sector are regulated by centralized authorities like the U.S. court systems, but the decentralized nature of the blockchain makes the formation of a regulatory authority to respond to disputes nearly impossible.
Still, though, demand is high for an arbitrating entity within the cryptocurrency community. The introduction of smart contracts to facilitate complex transactions has revolutionized business on the blockchain, but it also comes with its own drawbacks. Scams and botched deals are still common, and consequently many consumers continue to clamor for an independent arbitration system to fill the void left by the blockchain’s utterly decentralized nature.
Bankex’s brand new Smart Justice service offers to revolutionize the dispute resolution process. As the product moves out of the beta phase of its development, Smart Justice is a blockchain technology that works to arbitrate transactions within a community-based framework. In many ways, this community emphasis stays true to the nature of the blockchain while fixing a key problem in its road to actualization.
Bankex’s Smart Justice System Details
The Smart Justice program relies heavily on the use of the Bankex Trust Service. This smart contract platform publicly publishes and stores the details and specifications for both parties required for the satisfaction of their end of the transaction. When a dispute arises, both parties involved are allowed to recount their version of the events which led to the dispute.
The details of the dispute are then given to the community, where a vote determines the status of the conflict.
To prevent obvious bandwagon issues arising from the community-based nature of the platform, official, approved arbitrators serve as the weighted “opinion leaders” of the community, whose respected opinions give them additional voice when it comes down to the eventual final vote. Though these arbitrators are initially selected by the company, community members are allowed to apply and eventually become official arbitrators themselves.
The program takes advantage of the mathematical principle game theory, wherein the company theorizes that the right verdict is likely to be reached as more voters are involved in the process.
Voters can vote for either party, or they can abstain if they do not feel that enough information is available to make a decision.
Bankex Smart Justice In The Future
The biggest obstacle to the success of the Smart Justice program moving forward will be gaining the trust and security of the community. Because of the decentralized nature of cryptocurrency and the natural distrusting nature of many of the blockchain’s users, it is nearly impossible to gain access to a community-based arbitration system. Consequently, Bankex must work to facilitate the trust of millions of businessmen all around the world. Once this happens, it would become possible for a decentralized and community-based method of dispute arbitration to revolutionize the way transactions happen on an evolving blockchain.