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 technology has its own set of advantages as well as disadvantages. While the positive side of the distributed ledger technology includes high levels of transparency and decentralization, no one can guarantee that smart contracts will be executed properly in accordance to the stated requirements of the deal.
In cases where the quality of service provided as part of smart contract driven platform is not up to the standards, the dispute resolution and arbitration process gets complicated. The smart contracts, which are efficient when it comes to automation of the entire process will not be able to consider various factors to come up with a solution that ensures justice to the parties involved in a transaction. To solve this, BANKEX has designed the BANKEX Smart Justice platform which is capable of selecting the jury to efficiently resolve any conflicts arising within the crypto-powered P2P/B2B/B2C platforms.
The BANKEX Smart Justice platform is designed to maintain objectivity throughout the process by randomly selecting the people responsible for dispute resolution while ensuring that there is no collusion, corruption or miscarriage of justice.
The Smart Justice system works in conjunction with BANKEX Trust Service, where the initial binding contract between the parties to a transaction is established. On the platform, the parties will have to first describe and register their commitments. If both the parties are satisfied with each other by the end of the transaction, then the contract will be executed successfully, and closed. However, if there is a dispute between them, the Smart Justice system will come into play.
The BANKEX Smart Justice system uses the in-built probabilistic algorithm to select 51 random jury members who will be entrusted to settle the dispute. These members will be required to decide who is at fault and share their judgment in the form of a vote (using voting tokens). The decision gaining the majority of votes will be taken into consideration and the dispute will be resolved accordingly. In order to incentivize the participants, the platform also has an inbuilt mechanism where the ones casting the winning vote will receive a reward.
In cases where some of the decision makers decide to abstain from voting, and the total votes on either side fails to cross the halfway mark, the voting tokens will be reverted to the respective wallets of the participants. In such a situation, the parties to the dispute will have to start the case afresh by factoring in the concerns raised by the previous jury.
BANKEX Smart Justice system is designed to further improve the smart contract-based solutions by empowering it with transparent dispute resolution process which will also contribute towards the reputation of all the involved parties.