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The Rise of the Digital Economy is Unstoppable.
Traditional Organizations must adapt to changing consumer needs in order to keep relevance. In recent years, we have seen a significant trend towards digital consumption ranging from trade, entertainment, connectivity to productivity – basically the entire design of our Economy & Society. The merge of digitization with innovative technologies and concepts fundamentally re-shapes our expectations, sharpen our awareness and change the way we do Business. The Implementation of Blockchain Technology in our daily lives means that we replace human rationality and authority through code. Code, however, is always limited by itself – thus restricting the extent to which both parties can securely conclude contracts – no matter how smart they are. Every transaction between both parties is also attached to an imminent risk of conflicts. Currently, within the Blockchain sphere, there is little to no attention paid towards the implementation of a fair, transparent and decentralized arbitration system nor governance model. The best case would be the establishment of a complimentary third party consisting of general users who rule on certain cases through an easy-to-access platform – entirely managed by the community.
„In other words: A self-governed, dynamic arbitration system that can be trusted because it is managed by the users, for the users.“
Contemplating current traditional businesses, commercial disputes have to undergo a very time-consuming and costly arbitration procedure from submission to case management to verdict-execution – costs often exceed 50% of the claimed value. This immense waste of energy and resources is being replaced by digital, more efficient solutions in the first step (Xianyu, C2C Platform on Alibaba) and decentralized/modern solutions in the second step who finally meet the requirements & needs of the users.
Thanks to the Internet of Information, the sequence between invention and implementation of a new concept or technology is incredibly fast. For example, it only took 5 years in Chinas’ mobile payment sector to break from $1.6 trillion (2013) through $32 trillion annual revenue of transactions in 2017.
A similar development within the next few years can also be expected within the fast-moving blockchain space.
The future of dispute resolution in digital (not only blockchain-powered) economies undoubtedly lies in community-managed, self-organized organisms that transparently and fairly resolve conflicts.
The Oath Approach
How does Oath Protocol approach these pain-points?
Oath Protocol is designed to distribute decision making power between regular users and resolve conflicts effectively and independently – to almost no cost. Modeled on the common law jury system, Oath provides an innovative security layer that combines blockchain technology, cryptography, categorized random algorithms and relational attributes in order to ensure unbiased jurisdiction and eliminate conflicts of interest. A built-in Juror Credit Level mechanism tracks the accuracy and behavior of the jurors which 1) determines the amount of the reward for the juror and 2) filters out malicious actors and robots.
As the only chain-agnostic solution on the Market, Oath Protocol can be integrated through API’s (smart contracts) on any public chain or decentralized application. Use cases are therefore not limited to single platforms or technologies and the risk of failure is nearly eliminated, as Oaths’ success does not depend on the success of a certain technology. The ultimate goal for Oath Protocol is to become the standard and default arbitration mechanism to resolve disputes on all common platforms within the Blockchain Industry.
Oath already exhibits an impressive partnership base: Major public chains like NEM, Quarkchain, DREP, Qtum as well as dApps such as UNetwork, Populstay or CBNT already agreed to implement Oath Protocol as their default arbitration system.
Shared Communities lead to more Interaction
The larger the Oath Network becomes, the more jurors will automatically join the pool. This progress ultimately leads to a universal connectivity throughout all platforms that were previously isolated from each other. Different users from various platforms will rule on cases that occur on any other platform that is part of the Oath Ecosystem. The result is a higher engagement rate, extended platform usability and finally increased perceived value for the users.
Get rewarded to resolve conflicts!
The Oath Token is designed as the platforms’ internal fuel and used as the arbitration fee that is being determined by the disputants and paid out to the Juror who voted in favor of the winning party. In connection to the Juror Credit Score, the Juror rewards dynamically adjust – based on the skills and sense of right or wrong of the individual juror. Merged with Gamification-elements such as special Avatars and Milestones to be achieved, jurors are further incentivized to get active in goodwill and not just carelessly vote to earn money. While the Jurors’ Identities are kept private throughout all times, Oaths’ algorithms additionally ensure the avoidance of bribery and the risk of threatening attacks.
Oath Protocol proposes a universal standard for sustainable and reliable conflict management with built-in Reward mechanisms and applying the benefits of Blockchain Technology which are Transparency and Power Distribution – giving back Power to the People!
written by Michael Wurzinger
Head of BD at Oath Protocol