What is dispute resolution?

In some circumstances, a charge may be incorrect and require human intervention to resolve the issue. GumboNet enables you to resolve disputes in near real-time.

After a smart contract is executed successfully, it will automatically record charges, create invoices and communicate total charges to both parties per the agreed schedule. However, under some circumstances, a charge may be incorrect and require human intervention to resolve the issue.

There are two types of disputes:

  1. Automated Disputes - the transactional data does not meet the terms of your smart contract and is flagged for dispute resolution
  2. User Generated Disputes - you or your counterparty recognize an error and create a dispute manually

After a dispute is generated, a counterparty representative will review the disputed block, inspect errors and propose a solution. In general, the workflow is as follows:

Party A raises a dispute (or system auto-generates) → Party B receives dispute information → Proposed a solution → Party A accepts / correction made → Issue resolved

NOTE: Disputed charge blocks still get added to the blockchain. However, post-resolution, a new charge adjustment block is created and added to the same blockchain to reflect the change and reconcile the costs. This ensures that all activities are recorded while preserving correct invoicing amounts.

For example, party A was charged incorrectly $100 in block number 5. Party A then raised a dispute. After party B corrected the issue, a new adjustment block number 9 is created and had a charge of −$100. Records of both blocks are visible on the blockchain, however, the final invoice is zeroed out.

 

To learn more about different block types and how to inspect the block data   CLICK HERE.