Clear DefinitionsDispute Resolution Mechanisms
1 min read
Pronunciation
[dis-pyoot rez-uh-loo-shun meh-kan-iz-uhmz]
Analogy
Like a court system for blockchain, where litigants present evidence and an impartial body issues binding decisions.
Definition
On‑chain and off‑chain processes—such as arbitration, mediation, or governance votes—designed to resolve conflicts over transactions, smart contract outcomes, or governance proposals.
Key Points Intro
Dispute resolution mechanisms ensure fair handling of conflicts in decentralized systems.
Key Points
On‑chain arbitration: Smart contracts lock funds until arbitrator decision.
Governance voting: Token holders decide on protocol disputes.
Off‑chain mediation: Third‑party mediators facilitate settlements.
Appeal processes: Multi‑tier review for contested outcomes.
Example
Technical Deep Dive
Arbitration contracts implement `createDispute()`, `submitEvidence()`, and `rule()` methods. Juror selection uses token‑weighted randomness. Rulings trigger `executeRuling()` to transfer locked assets.
Security Warning
Arbitrator collusion can bias outcomes; design incentives for honest voting and allow appeals.
Caveat
On‑chain rulings may lack nuance; combine with off‑chain legal frameworks for complex cases.
Dispute Resolution Mechanisms - Related Articles
No related articles for this term.