Dispute Resolution

Prism aims to establish trust through staking and on-chain reputation building, prior to a transaction. The downside for bad actors via loss of stake and/or negative reviews should deter malice; however, we recognize the potential for issues. Therefore, we propose the following as an example of a blockchain-enabled dispute resolution system.

The system consists of clients, freelancers and reviewers. Clients and freelancers each contribute a deposit (a % of the task fee), which is held in escrow at the moment of engagement. The freelancer's deposit is more of a measure to prevent bad actors from wasting the client's time.

Either clients or freelancers can initiate a dispute process, at which point a panel of reviewers is randomly selected (random selection is imperative to preven sibyl attacks). Reviewers are then required to each cast one vote regarding the case. Depending on the results, the deposit is paid out to reviewers by the losing party.

• If the panel votes in favor of the freelancer, the freelancer receives their deposit and task fee; the client loses their deposit to pay reviewers

• If the panel determines the job was not completed or the deadline expired, the client receives their deposit and fee refund; the freelancer loses their deposit to pay reviewers.

If either disputing party tries to communicate/collude off-chain, they can be punished by anyone using a breach mechanism, resulting in the offending party's loss of deposit. If a party disagrees with the jury's conclusion, the dispute can be taken to an "oracle" involving mass voting on the platform with the entire project fee at stake.