DeDeal Intro
Protocol for Off-Chain Deals Without a Third Party
Last updated
Protocol for Off-Chain Deals Without a Third Party
Last updated
DeDeal is a decentralized escrow protocol for the exchange of crypto and off-chain value without any third-party Intermediaries through self-governed sanctioning.
Escrow: Intermediary services to ensure the security of commercial transactions
Normal deals using off-chain values, such as fiat or physical goods, require trust through a centralized third party, such as a corporation or state (or mafia). Such a third party ensures the enforceability of the contract by sanctioning the players who fail to fulfill it.
DeDeal makes contracts enforceable without relying on third parties by allowing players to sanction each other, freeing deals from centralized control and eliminating both fees and risks of censorship.
Traditionally, marketplace operators, crowdsourcing platforms, and cryptocurrency exchanges have required trust to secure deals.
DeDeal acts as a composable infrastructure to secure deals, enabling the operation of off-chain value platforms even by individuals or decentralized organizations whose level of trusfulness is unknown (or non-existant) necessarily have trust that was traditionally required.
Furthermore, it creates new trading opportunities in environments that ruck trusted third parties, such as countries with unstable governments.
The concept of "ownership" is both the fundamental building block of economy and the main source of conflict between two parties.
In a law-abiding society with a functioning state and police force, "ownership" is guaranteed by a social consensus in such a way that, "if your right of ownership is violated by anyone, a centralized power will sanction the offenders."
On the other hand, primordial "ownership" is simply established as a signal of “attack the enemy that violates your ‘ownership”, as in the case of territorial behaviors exhibited by animals.
DeDeal establishes an exchange of "ownership" of goods for their price, before they are physically moved. This is achieved by creating a sactioning agreement in the case of a contract breach.
