Creating Contracts with Arbitration in Obyte Wallet: A Step-by-Step Guideby@obyte
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Creating Contracts with Arbitration in Obyte Wallet: A Step-by-Step Guide

by Obyte4mOctober 19th, 2023
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This quick guide will walk you through the process of creating a contract with arbitration in the Obyte wallet. You can now trust strangers online because you’re protected —and it’s all easy and inexpensive. The Obyte Wallet is available for Android, iOS, Windows, Mac, and Linux.
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In the world of international trade, trust, and dispute resolution are paramount. Traditionally, these relied on expensive intermediaries, but ArbStore and Obyte can make the difference for small actors worldwide. You can now trust strangers because you’re protected —and it’s all easy and inexpensive.

This quick guide will walk you through the process of creating a contract with arbitration in the Obyte wallet and choosing an arbiter without complications or hard steps. Let’s go!

Step 1: Download and Set Up Obyte Wallet

To embark on this journey, both parties involved must download and set up the Obyte Wallet. This lightweight and user-friendly app is available for Android, iOS, Windows, Mac, and Linux. Ensure the security settings are configured according to your requirements in the "Global Preferences" section, and back up your wallet. Next, pair your wallets by adding each other as contacts in the Chat tab. This is necessary to share (and pay to) addresses later.

Step 2: Fund Your Wallet

Since smart contracts in Obyte operate exclusively with cryptocurrencies, one party, typically the buyer, must fund their wallet with their preferred Obyte-based token. New users can navigate to the "Receive" tab to find a button (“Get Me Coins”) for purchasing new coins. Regardless of the contract currency, having some GBYTE (Obyte's native token) in your wallet is necessary to cover transaction fees, which are typically less than $1.

Step 3: Discuss and Create the Contract

Now comes the exciting part. Parties can engage in a discussion and draft their agreement externally or via the encrypted chat feature within the Obyte Wallet. This chat ensures privacy and confidentiality. Once both parties are satisfied with the terms, proceed to write and copy the contract (in human language, so don’t worry), but first…

Step 4: Choose an Arbiter

Selecting an arbiter is a crucial step in this process. The ArbStore offers a pool of experienced arbiters with expertise in various industries. Take your time to browse through the available arbiters and choose one that best suits your needs. Arbiters on the platform may have their own terms and fees, offering flexibility in selecting the right fit for your trade scenario. Optionally, you could contact the chosen arbiter to verify their availability before writing their Obyte address in the contract (an obligatory step).

Step 5: Deploy the contract

The buyer should share their Obyte address with the seller. This allows the seller to initiate the creation of a contract with arbitration. Once the seller clicks on the address, they can fill in the necessary details, including the terms, conditions, payment information, and the selected arbiter address. The other party accepts the conditions from their own device if they agree to all the terms.

Step 6: Deposit Funds and Ship Goods

With the contract details finalized and signed, the next step is for the buyer to deposit the agreed-upon funds into the contract. To do it, it’s only necessary to click on the contract link in the chat, and press the button “Pay X Tokens to Escrow.” This action effectively locks the funds until the predetermined conditions are met. The seller can then proceed to ship the goods or deliver the agreed-upon services. If everything goes well, the buyer will need to release the payment to the seller from its own wallet. And that’s a successful trade!

Step 7: Arbitration Process

In the event of a dispute, the arbitration process comes into play. The party initiating the dispute, known as the plaintiff, contacts the selected arbiter and pays their fees. The arbitration, then, involves presenting evidence and arguments to the arbiter for evaluation. Meanwhile, the funds aren’t available for the parties involved in the contract.

Step 8: Funds Release

The arbiter carefully examines the evidence and documentation presented by both parties. Based on their analysis, they make a decision and release the funds to the winning party. While this process may not seem lightning-fast, it’s significantly quicker than traditional methods, which can take weeks or even years to reach a resolution.

Bonus: Arbiter Registration (Optional)

If you're interested in becoming an arbiter in the Arbstore, the process is straightforward. Follow the instructions provided by a chatbot within the Obyte Wallet, and you can also consult the Arbiter's Guide for additional information.

Now, creating contracts with arbitration in the Obyte Wallet and the ArbStore is a game-changer for international trade. It provides transparency, efficiency, and cost-effectiveness while ensuring privacy and security. By following these steps, you can harness the power of distributed ledger technology (DLT) to make your international transactions and purchases smoother and more reliable than ever before.

Featured Vector Image by storyset / Freepik