Dispute Resolution
Introduction
Dispute resolution is a fundamental element of the NerwoEscrow contract. In an environment where transactions occur between anonymous parties, it's essential to have an impartial and transparent mechanism to resolve any disputes.
How it Works
Dispute Initiation: If one of the parties is unsatisfied with the outcome of the transaction, they can initiate a dispute by paying an arbitration fee. This moves the contract into one of the following states:
WaitingClient: Awaiting the client to pay the arbitration fee.WaitingFreelancer: Awaiting the freelancer to pay the arbitration fee.
Dispute Creation: If both parties pay the arbitration fee, a dispute is created. At this point, an impartial third party (in this case, Kleros) steps in to review the evidence provided by both parties and make a decision.
Resolution: After careful evaluation, Kleros issues a ruling which can be one of the following:
acceptRuling = 1: The client wins the dispute and gets reimbursed.acceptRuling = 2: The freelancer wins the dispute and gets paid.acceptRuling = 0: The payment is split between both parties.
TimeOut: If one of the parties fails to pay the arbitration fee within a specified time, the other party wins by default.
Benefits of Using Kleros
Kleros is a peer-to-peer justice platform that uses blockchain to resolve disputes transparently and impartially. Here are some benefits of using Kleros in the context of Nerwo:
Transparency: All decisions are recorded on the blockchain, ensuring complete transparency of the decision-making process.
Impartiality: Kleros' jurors are randomly selected, ensuring an unbiased judgment.
Efficiency: Compared to traditional dispute resolution methods, Kleros offers a faster and more cost-effective solution.
For more information about how Kleros works, here is the documentation.
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