An Alternative to Court
The Proof of Trust exists to minimise the friction associated with doing business, either on or off a blockchain by resolving disputes quickly and effectively and ensuring all data is validated in the process. Court proceedings are often time-consuming, expensive, disruptive and damaging to working relationships. Apple vs Samsung in 2012 and the BP oil spill a year later cost a combined total of $80 billion1. Although these are extreme examples, all court proceedings cost more than the average person is willing to pay. Thankfully, there are alternatives. Mediation and arbitration are two prime candidates, to avoid litigation, they are similar, but subtly different means to resolve an issue between two parties. Mediation usually has an independent third party (mediator) oversee a discussion between two disputing parties to facilitate an amicable decision. If two disputing parties decide to go down the route of arbitration, the outcome is instead determined by the independent third party (the arbitrator) as opposed to the disputing parties themselves. With arbitration, one party is ‘awarded’ the case at the discretion of the arbitrator, and that award is final, there is no way to appeal this decision. Ultimately, both arbitration and mediation are quicker and cheaper than litigation in almost all circumstances. However, there are downsides. Mediation requires that the two parties come to a decision themselves; this may not be feasible or even possible if those involved are not in an amicable situation. Arbitration has several shortcomings too:
1. You almost certainly cannot appeal, even in litigation you can appeal the decision if you feel particularly aggrieved;
2. You are likely only to have one arbitrator (sometimes three in more significant cases), and it is impossible to rule out bias, it might be that the arbitrator takes a particular disliking to you, in which case you’re at a loss.
3. Arbitration requires that both parties attend a hearing to present testimonies and evidence to support their argument — impractical at a time when social distancing is still in place, and there is a considerable backlog of cases waiting to be heard.
A unique Alternative Dispute Resolution Service
The Proof of Trust is unique among dispute resolution services. We use technology to facilitate Alternative Dispute Resolution (ADR), both remotely and securely. Our protocol uses an anti-collusion algorithm to select known, insightful actors (can be a person, group, company, managed API or otherwise) functioning as oracles that work independently, voting on the validity of a dispute. After dissecting the evidence, each Delegate arrives at an outcome in favour of one of the two disputing parties. Delegates are incentivised to vote coherently without the ability to discuss the case. Finally, a decision is made by whichever direction the majority of the Delegates vote. All of this is conducted remotely, without the need for either party or Delegates to meet face to face. Evidence and testimonies are provided to the Delegates such that they can reach an unbiased decision, that avoids the need to break social distancing rules and acquire prejudices and form opinions based on the characters of either party. Employment contracts, construction, tax systems and insurance are just some of the areas that would benefit from an efficient, technology backed remote dispute resolution service.
On or Off a Blockchain
The ability to resolve issues or disputes remotely at present is invaluable, especially given the backlog of cases around the world as a result of the ongoing coronavirus pandemic. The Proof of Trust also recognises the importance of new and exciting technology and how it can facilitate the businesses of the future. Blockchain is one of those exciting developments that is gaining traction in almost every sector. Multiple financial institutions are exploring blockchain technology to facilitate cross-border transactions, and supply chains are using the technology to reduce complexities and add transparency. As with all forms of transactions, most go smoothly but sadly, not all parties are satisfied with every outcome. By making transactions as frictionless as possible, we can facilitate new business relationships on a global scale. The Proof of Trust enables connectivity and productivity universally.
References
- 5 of the Most Expensive Court Cases in US History. (2020, February 06). Retrieved July 03, 2020, from https://connorreporting.com/5-expensive-court-cases-us-history/.