Private Dispute Resolution on Ethereum

Abstract

We present a dispute resolution protocol that can be built on the Ethereum blockchain. Unlike existing applications, it is private by design through the use of zero-knowledge proofs. The protocol is resilient to Sybil attacks and provides increased collusion resistance amongst participating parties. A resolution to the dispute is guaranteed, whilst ensuring the users have the final say on the chosen resolution. The proposed protocol rewards stakeholders through a social incentive mechanism leveraging Soulbound tokens, and rewards agents who behave honestly, as opposed to favouring the wealthy. To our knowledge, this is one of the first dispute resolution protocols to implement governance through reputation as opposed to token-based voting. Furthermore, it is fully viable, given that all its necessary components are currently operating on the Ethereum blockchain.