Decentralized Dispute Resolution System is Live — Technology That Reinvents Conflict Settlement
Launch: July 24, 2025
DDRS is a technology created for everyone. Whether you’re in the Web3 space, run a small service-based business, or simply want a guarantee of fairness in contract execution — DDRS gives you tools that were previously available only to large corporations and institutions. Now, anyone can access a digital, transparent, and effective dispute resolution system.
After over a year of intensive work by the VAIOT team — including designing the system architecture, building the backend, frontend, blockchain architecture, integrating AI, and conducting three stages of functional testing — we proudly announce the launch of DDRS: the Decentralized Dispute Resolution System.
Each of the system’s modules was developed, tested, and improved independently. Community testing helped gather valuable user feedback and eliminate bugs. DDRS is now a technologically mature product, ready for real-world application. The launch of the platform marks a new chapter in digital dispute resolution.
What is DDRS?
DDRS is a digital, decentralized dispute resolution system designed for individuals and businesses entering into online agreements. It is built on blockchain technology, smart contracts, and AI, allowing secure creation of business transactions and their enforcement without the need for courts or institutional arbitrators.
“DeLaw is rooted in the logic of decentralized finance. It’s about peer-to-peer transactions secured by the system, not trust in an institution. The same idea can be applied to law and arbitration.” — Silvia Calls, CEO Abogados FinTech
How Does DDRS Work?
Here’s how the process works:
- Transaction creation — A user (logged in via their crypto wallet) starts by creating a transaction. They must first identify whether they are the Ordering Party or Service Provider, and then input the wallet address of the counterparty.
- Filling out transaction details — The user provides key information: what the transaction is about, its terms, the currency (USDT, USDC, or VAI), and deadline for delivery. The contract is shared with the other party via system email or a unique link.
- Negotiation — The parties negotiate terms live, accepting or modifying them until both sides approve. Then the Service Provider submits the contract to the blockchain.
- Payment — The Ordering Party deposits the agreed amount into the smart contract.
- Completion — When the Service Provider marks the service as completed, and the Ordering Party doesn’t raise objections within a specified timeframe, the funds are released to the provider. Extensions can be requested if needed.
To enable a dispute to be resolved, a transaction must first be registered and form the basis for any potential case.
- Dispute initiation — Disputes may be initiated when:
- The Ordering Party is dissatisfied with the delivered service.
- The Service Provider has delivered the service but it was not acknowledged or recorded.
2. Filing the dispute — The initiator provides a description, uploads documentation, and refers to the original transaction terms.
3. Two-round exchange of arguments — Both parties can respond twice in a structured order before the case is handed over to jurors.
4. Choosing a jury package — The initiator selects a juror package (paid in VAI):
Juror selection — Interested jurors apply. The system randomly selects from the applicants
5. Juror Case Review & Evidence Evaluation — Each juror is responsible for thoroughly reviewing all information related to the dispute, including the original business transaction, service delivery terms, and all evidence submitted by both parties during the dispute creation process.
6. AI-Powered Case Knowledge Test- Before casting a vote, each juror must pass a case-specific knowledge test generated by an AI Agent, ensuring they fully understand the dispute and its context.
7. Voting — Jurors review the case details and submitted evidence, then vote based on their evaluation. Their verdict triggers automatic fund distribution according to their decision.
9. Juror fees are distributed among the participating voters.
10. The funds at stake in the dispute are then distributed in accordance with the jury’s decision. These funds are distributed directly from the smart contract that was created when the transaction was initially registered.
Funds and Payments
Every DDRS transaction is backed by real value. Once a contract is finalized, funds are escrowed in a smart contract.
At launch, DDRS supports three cryptocurrencies: VAI (VAIOT’s native token), USDC and USDT, all operating on the Polygon network. This allows users to utilize stable, global digital assets while enabling the platform to automate payment execution based on jury decisions.
The supported token list will be expanded in the future.
How DDRS Was Built
DDRS was developed around three modular components:
- Transaction Module — for creating contracts, enhanced with AI.
- Dispute Generation Protocol — for submitting positions and evidence.
- Jury Portal — powered by voting logic, XP, reputation, and rewards.
“Many cases don’t need to end up in court — there are simpler ways to resolve them. DeLaw (including DDRS) is about automating what can be automated and leaving the judgment to humans.” — Tomasz Krzywański, legal advisor
Technology at the Core: Blockchain Meets AI
DDRS is a full-stack solution merging decentralization, automation, and intelligence.
🔗 Blockchain:
- Immutable Contract Terms — Non-confidential criteria are stored on-chain.
- Selective Transparency — Public data is visible, sensitive data is encrypted and accessible only to selected jurors.
- Unbiased Selection — Uses Chainlink VRF for fair juror assignment.
- Smart Contract Automation — Ensures automatic and secure fund execution.
- Blockchain Dashboards — Accurate, real-time metrics and history.
🤖 Artificial Intelligence:
- AI-Guided Setup — Ensures well-defined agreements.
- Knowledge Tests — Jurors are evaluated by AI on case comprehension.
- Anti-Abuse Tools — AI monitors system usage for suspicious behavior.
- Gamified Progression — XP-based juror ranking system with increasing perks.
Who Are the Jurors?
Jurors are the cornerstone of DDRS — individuals who evaluate evidence, assess the terms of the transaction, and vote on the outcome of a dispute. Anyone who stakes VAI tokens can apply to become a juror by joining the jury pool for an open case. From this pool, a specified number of jurors is selected at random for each dispute. Before casting a vote, jurors must complete an AI-generated knowledge test related to the case, ensuring they fully understand the context and evidence.
Jurors — anyone who stakes at least 5,000 VAI tokens can apply to join.
Jurors receive rewards in VAI tokens and accumulate experience points (XP), which allow them to progress through juror ranks and unlock new privileges.
Who Is DDRS For?
The legal and commercial landscape is changing rapidly. According to industry data shared by legal professionals and startups in the decentralized legal tech space, disputes from B2B and B2C transactions have surged by over 35%, reflecting a growing need for accessible conflict resolution mechanisms. Meanwhile, projections estimate that global e-commerce sales will reach $7.96 trillion by 2027, creating immense transactional volume — much of which occurs without formal legal support.
DDRS was created to address this gap. Many freelancers, gig workers, DAOs, and cross-border service providers conduct transactions based solely on mutual trust or informal communication (like chats or emails), lacking tools to enforce agreements or protect their rights. For decentralized organizations and digital marketplaces, traditional legal routes are often too slow, expensive, or simply impractical.
With its blockchain-native, AI-enhanced, and fully online structure, DDRS offers a scalable alternative. It embeds enforceable agreements and resolution logic into every transaction, making it a reliable legal infrastructure layer for the digital economy.
- Freelancers and contractors — secure payment.
- Ordering Parties — verified delivery.
- Marketplaces — built-in dispute system.
- Web3 users — decentralized resolution.
- Legal professionals — modern arbitration tools.
Real-Life Use Cases
1. Freelance dispute
A graphic designer was hired to prepare a full branding package, including a logo, color scheme, and marketing assets. After multiple revisions and deadline extensions, the final delivery lacked several agreed elements and contained inconsistencies. The Ordering Party opened a dispute, submitting screenshots of the agreement and incomplete files. Jurors analyzed the materials and awarded the designer 60% of the payment.
2. Faulty translation
A client ordered a professional translation of a legal document. The delivered text contained numerous linguistic inaccuracies and omitted entire clauses. The Ordering Party submitted both versions and a review by an external translator. After reviewing the evidence, jurors decided on a full refund.
3. Marketing campaign failure
A marketing agency committed to running a paid advertising campaign that would meet predefined performance indicators (KPIs). The final report showed poor CTR and significantly lower reach than agreed. Evidence included screenshots of the ad dashboard and communication logs. Jurors awarded the agency 80% of the value, recognizing partial effort but not the outcome.
4. Incomplete software delivery
A developer was contracted to deliver an application with three defined functions. The final product included only two working features. The Ordering Party opened a dispute. After reviewing the submitted evidence (including a short demonstration video), jurors awarded 66% of the contract value to the developer.
5. Defective product purchase
A customer bought a household appliance through an online marketplace using DDRS-backed terms. Upon delivery, the vacuum cleaner was damaged and did not turn on. The customer uploaded photos and an unboxing video as evidence. The seller did not dispute the claim, and jurors ruled for a full refund.
What Makes DDRS Stand Out?
✅Resolutions within days not months or years
✅ Lower cost compared to traditional arbitration
✅ Entirely online — no legal knowledge required
✅ Automatic enforcement of decisions
✅ Independent jury system
✅ Automatic execution of verdicts
✅ AI-powered assistance in secure transaction creation
✅ Global reach
✅ AI-driven juror knowledge-case testing and analytics
“We didn’t build DDRS as a ‘Web3-only’ tool, but as a platform anyone can use.” — Szymon Redding, DDRS Lead Developer
Why DDRS Could Become the New Standard
“The most common disputes are B2B. Traditional procedures are time-consuming and ineffective.” — Piotr Cedro, attorney, co-founder of KNS Legal
DDRS doesn’t replace the law. It extends it with accessible, scalable technology.
Wherever there’s a need for fair, simple conflict resolution — DDRS fits.
Join DDRS
Ready to settle disputes in a better way?
- Enter digital agreements securely.
- Resolve conflicts fast.
- Become a juror and earn VAI.
Launch: July 24, 2025
About VAIOT
VAIOT offers LegalTech and DeLaw solutions to democratize access to legal services by leveraging AI and Blockchain. Proudly, we are the first VFAA-regulated digital asset issuer.
VAIOT- AI and Blockchain for Legal Innovation.
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