UNOLABO’S SMART-CONTRACT: SAFE DEAL AND INSURANCE
Even the most perfect smart-contract can’t resolve all the security issues, especially if they influenced by human factor. For solving problems like these, *in Unolabo we introduce time-tested mechanisms of user’s interest protection, such as insurance, arbitration (Safe Deal) and other methods of dispute resolution. The following example explains better how all these features interact with each other.
The transaction processing process is initiated by the smart-contract function “New task”, where it is necessary to enter data on the contract, such as amount of work, deadlines, etc. The employer also must reserve some funds using our Deposit function.
When the work is completed, the performer / seller calls the “Done” function. In addition, he confirms the fulfilled obligations in a previously defined way (for example, a photo or ID).
The customer / employer presses the bottom “Confirm”, after which the funds deposited earlier in the smart contract are sent to the wallet of the contractor / seller - via Money Transfer. The result of transactions is fixed in a chain of blocks (a copy is stored on the server) and affects user’s rating.
If there are disagreements at the final stage, then a flexible system for resolving various types of disputes is initiated, allowing to reach a compromise between the customer and the contractor / seller.
In extreme cases, “Safe Deal” can be initiated where a third party is attracted for arbitration. This mode is activated by the "Disagree" function. The smart contract sends to the server an escrow-request for participation of three independent arbitrators.
The system chooses arbitrators from among the users who meet a number of criteria. The most significant of them is a high expert rating in the skill in which the performer conducted the disputed transaction. Arbitrators are anonymous and make their decisions independently of each other, which completely excludes corruption risks and accusations of bias.
All decisions taken by the arbitrators are final and not subject to appeal. Since the resolution of disputes is decentralized, for the decision, the smart contract determines the remuneration to the arbitrators in the amount of 10% of the transaction amount. Costs for payment of arbitration procedures are divided between both sides of the dispute according to the principle of inverse proportionality. Users selected by the system to participate in arbitration raise their rating and are rewarded with bonus points that they can use in the MotiVa system.
Follow our Telegram channel to stay up to date with the latest news on the project!