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One of the most useful tools to emerge with blockchain technology is the automatic resolution of conflicts. The Confideal ecosystem ensures that disputes are settled quickly and without additional losses.
The average arbitration procedure currently costs $ 2.5 million and takes no less than six months. In case of litigation, it is often necessary to hire a third party arbitrator who is not usually familiar with smart contract technology.
Confideal, a platform for creating smart contracts, enables counterparties to resolve disputes quickly and inexpensively. The service is one of many business tools that Confideal will make available to people who do not have extensive legal or coding skills.
The Confideal ecosystem allows businesses and individuals to negotiate contracts without an intermediary. An Ethereum smart contract serves as escrow agent that stores the funds and terms of the contract until the contract is completed.
The Confideal escrow agent ensures that the funds in the contract move in accordance with the terms of the contract. Terms are only available to counterparties and an arbitrator in the event of a dispute between the counterparties.
The parties to the contract may be companies, contractors and individuals who wish to enter into contracts with each other. Each part of the Confideal ecosystem exists in interaction with each other and cooperates in voting and doing business.
When two counterparties sign the smart contract, Confideal automatically launches it on the Ethereum blockchain.
Effective Arbitration Process
If a dispute arises between counterparties after the conclusion of a contract, they may initiate the arbitration process. The parties to the contract choose an arbitrator to settle any disputes before concluding a contract with each other.
An arbitrator may then resolve the dispute without having access to the personal data of the counterparties. Referees have access only to the cryptocurrency wallet addresses of the counterparties.
Disputes can be resolved without the parties having to leave the Confideal platform. Third parties such as professional lawyers and mediators serve as arbitrators to resolve disputes on the platform. These referees are qualified specialists with the necessary skills to resolve disputes.
How arbitrators are chosen
To be approved as an arbitrator on the platform, candidates submit documents confirming their status. Once Confideal has approved them as an umpire, they are allowed to use the platform. Referees then create accounts on the platform and enter their personal data.
Arbitrators are paid to settle contractual disputes, which can range up to 10% of the contract sum.
Confideal's arbitration system assesses arbitrators, offering high-quality arbitration. A factor that determines the rating is based on the vote by the members of the Confideal ecosystem.
The referee's notation is based on both objective and subjective factors.
Objective factors represent 70% of the overall score and include the speed of response, the number of disputes resolved and the completeness of the information disclosed about the arbitrator.
Subjective factors include 30% of the rating and include the votes given to the referees by CDL token owners. Members vote for the referees with their CDL tokens, the proprietary token of the ecosystem.
Ten CDL tokens equivalent to one vote. An owner of 1,000 CLDs can give 100 votes to an arbitrator or distribute them among arbitrators.
Members also have the opportunity to vote for referees using a system of "likes" and "disgust". This system serves as an additional subjective measure.
There are two Confideal arbitration modules. In "arbitration", the decisions of the arbitrators can be used by the courts of the government to be applied by the bailiffs. Confidential arbitration complies with national and international arbitration rules.
This module requires the participation of the government courts.
The "mediation" module does not comply with national or international laws. It requires the agreement of counterparties. This module takes less time since the decisions are applied within the Confideal platform.
Once the arbitration is complete, the counterparties evaluate the referee.
The evaluation is available to all Confideal users.
For more information, visit the Confideal website.
Or join us on Telegram: https://t.me/confidealioeng