With the prospering development of cryptocurrencies, the applications for digital assets is expanding. Increasing numbers of countries and regions are now accepting digital currencies as a payment method. However, there is always an unsolved cul-de-sac associated with digital currency transactions — in online purchases of commodities and in OTC currency exchange markets. Should buyers pay before receiving the product, or the other way around? Enter “Themis”, which aims to solve these problems.
This is a press release provided by Themis
The first solution as the most common practice is to introduce a credible third-party that acts as a trustee of the digital currencies. However, it is a general perception that single credible third-party is a centralized system that leads to security problems. One notorious example is the ‘Mt. Gox hack’ where hackers stole $460 million USD equivalent Bitcoin at the time.
The second solution is the adoption of a 2-of-3 multiple signatures mechanism. Unfortunately, under the trust-less principal, it is susceptible to conspiracy problems. The trustee of the assets can easily contact and connect to particular buyers or sellers to conduct fraud.
In order to resolve the problem, Themis takes advantage of the renowned characteristics of blockchain, suggesting a multi-point trust mechanism, and an asset custody system that realizes decentralized hosting services.
Under such a mechanism, both parties to the transaction can choose multiple independent third-party trustees from a group of asset custody services providers. Any potential dispute will be resolved by voting within the third-parties trustees, which ensures a fair and secure exchange of assets using cryptocurrencies.
Themis Realizes Safe Asset Custody
The most important quality to resolving the single third-party safe asset custody problem is ‘fairness’.
In ancient Greek myths, the universally accepted ‘fair’ decision is hosted and conducted by the Goddess Themis. But in modern society, the consensus mechanism is reframed by blockchain.
Project Themis, taking advantages of the benefits of decentralzsation system, facilitates the implementation of this fair and equal system on e-commerce, international trade and smart contracts and underpin their growth.
Themis provides escrow service (similar to the function of PayPal in online shopping), releasing a designated token on a blockchain called Global Escrow Tokens (GET). GET also represents the international team of Themis and the global strategies.
Incorporating the multi-point escrow mechanism based on an economic motivation and reputation system, the idea initiated by Themis will successfully encourage the ‘nodes’ in the blockchain through smart contracts in the provision of escrow (asset custody) and arbitration (dispute resolution) services.
Ultimately, a point-to-point exchange of digital currencies and between digital currencies and real-world assets can be realized on a fair and secure basis. For the enthusiastic nodes that participate in escrow and arbitration process, they will be motivated by escrow and arbitration service fees respectively.
In other words, in the process of digital currency payments, users will be charged with the GET coins for the escrow and arbitration services. Nodes that partake in providing those service will be rewarded GET coins. As such, circulation of GET coins in Themis can be maintained. Please see more details at http://themis.network/.
Clever T. [email protected]
Hugo G. [email protected]
Themis is a decentralized system which provides third-party escrow services and dispute resolution services to bring fairness to exchanges in which one or both parties are using digital currencies as subject matter.
About the China-UK Blockchain Association
The China-UK Blockchain Association aims to build an exchange platform between the UK and China to facilitate cross-border collaboration in Fintech and Blockchain.
Images via Themis
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