Blockchain provides not only secure tax-free transactions, it provides decentralization. What does it mean in practical terms and what benefits it brings to users? Let’s observe crowd arbitrage on WONO and find out.
An arbitrage starts when one of the parties decides to cancel a deal. There can be dozens of reasons to do it. Plans change, accidents happen, to name a few. Deal cancellation always affects the opposite party. Imagine that you’ve planned a vacation, rented a flat and suddenly the vendor calls off the rental. It’s two weeks before you arrive to the vacation destination, all private homes are booked, and only expensive hotels are left.
Or another case. You need some urgent job done, a freelancers agrees to do it and then reconsiders a couple of days before the deadline. Or you plan to rent out your car because you need money for something, and then your customer suddenly reconsiders… You can imagine hundreds of such situations. They always cause inconvenience and very often — money loss.
It’s obvious that a deal cancellation must be uncomfortable for both parties. Then users will think twice before changing mind and do it only because of some serious reasons.
That’s why we’re building a fair crowd arbitrage system. When the cancellation dispute begins, any user (excluding those who participate in the deal) can take part in the voting for the guilty party.
Sometimes it’s very easy to determine, which party is guilty and which is affected, sometimes it’s not at all. Imagine this: a customer came to a rented property and found out that it’s in a mess. He or she calls the deal off deciding to rent something else. Who’s guilty in that case? Depends on what a “mess” exactly is, and is it a valid cause for a cancellation. To find out, who’s right and who’s wrong, you need to see photos, videos and other evidence.
Service desk guys on centralized services rarely care about proper investigations. They usually don’t have time on such “trifles” and their salary is fixed. Crowd arbitrage works in a different way.
Arbitrators on WONO are highly interested in studying all cases thoroughly because if they vote for the party which as a result will be recognized as affected, they will get a bonus from an insurance part of the platform’s commission. If not, they won’t lose any tokens, but waste their time.
Such a mechanism makes arbitrage quality higher, more fair and, in the end, ensures that you will be compensated if something goes wrong through no fault of yours.
Good concepts
Sun12
Bounty0x username: @frankydoodle
bounty0x: kryptonaut