Dispute Resolution

One of the key features of IsabiPay Escrow is its robust dispute resolution mechanism, designed to protect both buyers and sellers in the event of a disagreement. The decentralized nature of the platform ensures transparency, fairness, and efficiency in resolving disputes, while the smart contract-based system guarantees that no funds are released until the issue is resolved.

How Disputes Are Handled

Disputes arise when one party (either the buyer or the seller) believes that the terms of the escrow contract have not been fulfilled. For example, the buyer may claim that they did not receive the goods or services as agreed, while the seller may argue that they have fulfilled their obligations.

Here’s how disputes are handled on the IsabiPay Escrow platform:

Dispute Initiation

Either party can initiate a dispute by navigating to the "Ongoing Escrows" section and selecting the option to start a dispute. Once a dispute is initiated, the release of funds is paused, and both parties are notified of the dispute. The platform temporarily locks the funds in escrow until a resolution is reached.

Submitting Evidence

Both parties are required to submit evidence to support their claims. This may include:

For Buyers: Proof of non-delivery or defective goods/services (e.g., screenshots, correspondence).

For Sellers: Evidence of fulfilling the contract terms (e.g., shipment tracking, service logs).

The IsabiPay platform allows users to upload and submit relevant documentation or messages directly through the dispute resolution interface.

Platform Review

The IsabiPay platform’s automated dispute system will analyze the submitted evidence, aided by the predefined smart contract terms. Depending on the case's complexity, IsabiPay may also involve third-party mediators or arbitrators for an impartial review. The platform reviews all communication, transaction records, and contract conditions to assess the legitimacy of each party's claims.

Arbitration Process

If the dispute cannot be resolved directly between the buyer and seller, the arbitration process is initiated. Arbitration on IsabiPay Escrow relies on decentralized methods to ensure fairness and avoid bias.

Step 1: Multi-Signature Resolution

In some cases, the dispute can be resolved using multi-signature technology, which allows trusted participants (such as platform moderators, mediators, or third-party validators) to review the evidence and make decisions. Each party (buyer and seller) may appoint a trusted mediator, and once all signatures or approvals are received, the smart contract either releases the funds or refunds the buyer, depending on the outcome.

Step 2: Third-Party Arbitration (if applicable)

If the parties agree beforehand, a neutral third-party arbitrator can be brought in to mediate the dispute. The arbitrator reviews the evidence, listens to both parties, and makes a decision based on the facts and the terms outlined in the escrow agreement. The decision made by the arbitrator is binding, and the smart contract will act accordingly by either releasing the funds or initiating a refund.

Step 3: Final Decision

Once the platform or arbitrator reaches a decision, the funds are automatically handled based on the resolution:

Funds Released to the Seller: If the arbitrator finds that the seller fulfilled the terms of the agreement, the smart contract will release the funds to the seller.

Refund Issued to the Buyer: If the arbitrator determines that the buyer did not receive what was promised, the funds will be returned to the buyer.

Both parties are notified of the decision, and the transaction is marked as resolved.

4.3 Benefits of IsabiPay’s Dispute Resolution

Decentralized and Transparent:

The entire dispute process is handled on-chain, ensuring that all actions are recorded on the public Solana blockchain. This transparency builds trust and accountability.

Automated Arbitration:

Smart contracts automatically execute decisions, preventing any delay or manipulation in the dispute resolution process.

Fair and Impartial:

By allowing third-party arbitrators or multi-signature agreements, IsabiPay ensures that disputes are resolved fairly and without bias.

Efficient and Timely:

The platform aims to resolve disputes as quickly as possible to minimize delays for both buyers and sellers. IsabiPay Escrow’s dispute resolution process ensures that users can transact with confidence, knowing that any potential issues will be addressed fairly and efficiently.