Contractual Agreement between Buyers and Sellers
The infrastructure for exchanges of off-chain assets for on-chain tokens is based on Boson Protocol’s smart contracts and a human-readable buyer-seller contractual agreement. The combination of the on-chain and human-readable contract represents an important innovation that aims to revolutionize disputes and legal recourse in commerce.
Boson Protocol is designed to ensure a fair exchange for both parties involved in the exchange, regardless of the jurisdictions in which counterparties are based or whether legal recourse is indeed possible due to pseudonymity of parties. The protocol links a human-readable contractual agreement to the smart contracts, providing a clear description of the transaction process and defining certain rights and obligations for both the seller and the buyer. This allows for a fair and transparent dispute resolution process, with clear documentation and proof of evidence.
The challenge is creating an irrevocable connection between a smart contract and a human-readable contract. The solution involves creating a template for the human-readable contract and then populating it with data from the smart contract and from an immutable metadata file linked to from the smart contract (stored e.g. on IPFS). This combination of public and immutable data allows external parties to easily verify the terms of any Offer created in the protocol.
Key components of the Boson contractual agreement
There are three key components, which the contractual agreement is based upon.
A blockchain is used to:
- record the signatures of the Buyer and Seller interacting with the Boson Protocol smart contracts;
- immutably store a unique identifier (hash) of the human-readable contractual agreement;
- keep track of the relevant parameters that are required for the smart contract execution and that will feed into the contractual agreement.
Decentralized immutable storage
An immutable decentralized off-chain storage is used to:
- keep track of other parameters that are not necessary for the execution of the smart contract but that are required to complete the contractual agreement.
The application layer
The Boson Protocol dApp is used to:
- provide a user-friendly interface for the parties to interact with the system and finalize their agreement about the transaction.