A dispute resolution comes into place when a disagreement occurs between business parties. According to the “Online Dispute Resolution for Business by Colin Rule,” for $7 trillion internet projections, 1% to 3% of transactions end up in some dispute, resulting in up to $210 billion frozen awaiting resolution. [https://arbitrationlaw.com/library/online-dispute-resolution-business-colin-rule-journal-american-arbitration-jaa-vol-2-no-2]
Most online trading platforms have integrated protection policies for buyers and sellers, but there are some cases where dispute resolutions fall short. In addition, these resolution processes can be painstakingly time consuming. The Instance App has integrated a dispute protocol that would limit the tedious resolution process for customers and service providers.
On the Instance App, users can initiate a dispute by submitting a detailed report of the situation. When a dispute occurs, the Instance Dispute Protocol is activated, freezing all Insta involved in the dispute to the smart contract until the situation is fully resolved.
The report is then analysed by five arbitrators appointed by Instance to vote for or against the parties. The initiator offers up to 10% of the frozen Insta to arbitrators as incentive. The Instance Dispute Protocol will only commence the resolution process when 5 arbitrators have agreed to participate. To participate as an Instance arbitrator, the individual will be required to stake his/her Insta. All Instance arbitrators will have their participation rates and correct decision rates recorded on blockchain.
In the event that either party wishes to appeal the decision made, a new group of arbitrators will be assigned to vote. In this situation, the appealer will pay Instance a fee equivalent to 5% of the Insta on hold, on top of the additional Insta to be offered to the new group of arbitrators.
Instance’s dispute protocol is derived from the Online Dispute Resolution (ODR) Process. The sequence of the ODR follows: Raising of dispute; negotiation to reach a mutual consensus; if both parties are still unsatisfied, escalate an existing dispute to a claim; solve a claim with expert advisors; arbitrator follows up a closed if transacting parties are still unsatisfied.
According to a post by Tavant Technologies, the ODR process has helped trading platform giants like eBay and PayPal to solve more than 400 million cases as of 2015.[https://www.tavant.com/blog/online-dispute-resolution-odr-process-six-steps-get-your-disputes-resolved-faster]. By adopting this system, the Instance community would be able to trade services in a secure and fuss free environment. Find out more at the official instance website http://instoken.io
