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 conundrum, BANKEX develops the Smart Justice - a blockchain based arbitration service for dispute resolution and reputation management in the crypto sphere.
Decentralized transactions rely on math, and immutable ledgers and Smart Justice arbitration are fully aligned with this concept and technology. Using the Law of Large Numbers, independent arbitrators from all over the world are randomly selected to review cases of disputed blockchain based transactions presented by aggrieved parties and provide fair arbitration for conflict resolution.
How does it work?
Initially, the two parties involved would have to initiate a smart contract through the BANKEX Trust Service. All conditions of the contract will, therefore, be permanently available as and when the need arises, in this case, when arbitration is required.
As with any situation, there are always two sides to a story. With our arbitration board, Person B, or the Counterparty, would be able to give their version of events with the smart contract correspondence to validate or reject those claims.