Proposed Solution

Product and Technology Overview

Financial Inclusion

Through the elimination of KYC or national identification requirements for marketplace access, the unbanked and debanked populations are granted the opportunity to engage in online commerce.

Sign up involves a crypto wallet and the implementation of Zero Knowledge Proof Psudoanonymised digital ID's. Therefore, a user's profile is merely a SHA25- hashed immutable entry on blockchain technology. Reviews and accomplishments are then matched to this hashed profile alongside transactions to support the authenticity of the user's accomplishments and experience.

Neural Network AI Model

All marketplace platforms will use the Three Protocols Neural Network AI model. This model uses the latest alphanumeric AI algorithms to build a real-time updated product, service and real world assets interface for users to interact with. This means that a user will be asked questions by the AI model about what they are looking for, and the model will then give suggestions on what would best suit their situation.

This will radically reduce the search time required for product and service procurement, enabling Three Protocol marketplaces to appeal to Web 2 users due to their great efficiency and accuracy at matching clients to services and products matching their requirements

DAIOs

Traditional DAO systems, until this date, have proved totally inefficient in making consensus-based conclusions on topics other than software or protocol updates. Such successful implementations have been found in Bitcoin, Uniswap, Ave, makerDAO. However, when DAOs have been utilised to make decisions on business, finance, legal and dispute-based dilemmas, they have not been deemed effective enough to sustain an ongoing fulfilment of task requirements.

One of the major causes of this lack of scalability is the issue of accountability. Because DAO members are typically anonymous, there is no method that ensures their commitment to the goals of the protocol. Thus, many DAO members have been found to vote arbitrarily or randomly in order to obtain the vote reward as quickly as possible.

Three Protocols introduces the concept of DAOs (Decentralised Artificial Intelligence Organisations). DAIOs implement open-source updatable AI systems to ensure that voters are voting on an informed and evaluative basis. For example, within Three Protocols eCommerce systems, if there is a dispute between two parties, a voting DAIO member is also required to give a 120-character explanation for their vote. This explanation is then evaluated for consistency with the consensual explanations of the voting cohort to give the voting member a ISR (informed specificity rating).

Furthermore the last 10 votes of the voting member are also taken into account and an AI system is run to see to what extent the voting member was consistent with the rest of the voting cohort. This metric is also a contributing factor towards the ISR score, once a voting members ISR score drops below 45 points they are then disqualified from a certain number of the next consecutive votes relative to the extent to which the score has dropped below 45.

Escrow Dispute Mechanism

The $THREE marketplaces are designed to operate with users holding pseudonymous or anonymized public key hashes, mandating sellers to commit a predefined cryptocurrency amount to cover potential dispute fees when engaging in contracts. Concurrently, buyers will be required to escrow the value of the product or service, which is disbursed to the seller only upon confirmed receipt. For instance, within the Jobs3 framework, a project manager seeking web design services would deposit 1000 $THREE tokens into a DAIO-involved, tri-signature wallet, while the web designer contributes a dispute fee of 5 $THREE tokens to the same account.

In the context of a filed dispute whereby the discussed service was not delivered, the dispute fee is paid by the party to whom fault is assigned. If fault is equally assigned both dispute fees will be returned to their respective owners. For example, In the circumstance whereby the buyer is not satisfied with the provided product, the buyer may initiate a dispute. At this point, the buyer would transfer 5 $THREE tokens into the tri-signature wallet and the dispute process would be instigated.

Both parties would be granted a given amount of time to submit evidence, and a 51% consensus would be sought from the DAIO members after this time period. These decisions are executed via a Tri-Signature wallet architecture involving the buyer, the seller and the DAO authority.

DAO-Based Dispute Resolution

Marketplaces under the $THREE project umbrella will implement governance via the $THREE DAO, leveraging cybersecurity expertise from the Tectum team and premier auditors to ensure platform security. This governance model permits payment and fee processing across various blockchains and currencies.

Overview Three Protocol utilizes a tri-ZKP (Zero-Knowledge Proof) architecture to create a trustless and transparent dispute resolution system for eCommerce transactions. This system ensures privacy and integrity while resolving disputes using smart contracts on a blockchain.

Key Components:

1. Seller: The party offering an item for sale.

2. Buyer: The party interested in purchasing the item.

3. DAIO: Decentralized Artificial Intelligence Organization that arbitrates disputes.

4. ZKP Sign: Zero-Knowledge Proof signatures ensuring the authenticity and privacy of transactions.

5. Dispute Fee: A fee paid by either party when a dispute arises.

6. Platform Fee: A fee taken by the platform for facilitating the transaction.

Decision Tree Breakdown

1. Initial Transaction Setup o Seller Advertises Item: The seller lists an item for sale. o Buyer Applies: A buyer expresses interest in purchasing the item. o Seller Accepts Application: The seller agrees to the transaction. o Seller Sends Dispute Fee and Payment Amount: Both the seller and buyer send the necessary fees to initiate the transaction.

2. Item Transferred o Once the item is transferred from the seller to the buyer, the decision tree splits into different paths based on the buyer's response.

3. Buyer Responses

a. Buyer Doesn't Respond in Time o If the buyer fails to respond within a specified timeframe:  The seller and DAIO ZKP sign off.  The buyer forfeits the dispute fee, which is then distributed to the seller.  The platform fee is deducted, and the seller receives the payment.

b. Buyer is Satisfied

o If the buyer is satisfied with the item:  Both the seller and buyer ZKP sign off.  The buyer and seller dispute fees are returned.  The payment is processed, and the platform fee is deducted.

c. Buyer is Dissatisfied

o If the buyer is dissatisfied, they can:  Make a counter/complaint offer.  If the seller agrees with the buyer's counteroffer, both parties ZKP sign off, and the dispute fees and payments are processed as above.  If the seller disagrees, they can escalate the dispute to the DAIO.

DAIO Involvement in Disputes

1. Seller Dissatisfied with Buyer Counteroffer o If the seller is dissatisfied with the buyer's counteroffer, they can escalate the dispute to the DAIO. o Both parties submit evidence within 48 hours. o The DAIO makes a decision in 24 hours.

a. DAIO Agrees with Buyer o The buyer and DAIO ZKP sign off. o The buyer's dispute fee is returned, and the seller's dispute fee is distributed to the buyer. o The payment is processed accordingly, and the platform fee is deducted.

b. DAIO has a Split Payment Conclusion o If the DAIO decides on a split payment, the fees and payments are distributed accordingly:  The seller and DAIO ZKP sign off.  Both parties share the dispute fee and receive payments as per the DAIO's decision.  The platform fee is deducted.

Technological and Security Features

• Tri-ZKP Proof: Ensures that all transactions and dispute resolutions are verified without revealing sensitive information. This maintains privacy and security.

• Smart Contracts: Automate the entire process, ensuring transparency and reducing the need for intermediaries.

• DAIO Arbitration: Decentralizes the dispute resolution process, making it fair and unbiased.

• Time-bound Responses: Ensures that all parties act within specified timeframes to maintain the flow of the transaction process.

• Automated Fee Distribution: Fees and payments are handled automatically, reducing the risk of fraud and errors.

Use Case Examples

Use Case 1: Online Marketplace for Physical Goods Scenario: Alice wants to buy a vintage watch from Bob on an online marketplace.

1. Transaction Initiation: o Bob lists the vintage watch for sale. o Alice applies to buy the watch. o Bob accepts the application, and both parties send the dispute fee and payment amount to initiate the transaction.

2. Item Transferred: o Bob ships the watch to Alice. o The item is marked as transferred.

3. Buyer Response: o Alice receives the watch and is satisfied. o Alice and Bob both provide ZKP signatures to confirm the transaction. o The payment is released to Bob after deducting the platform fee.

4. Dispute Scenario: o If Alice is dissatisfied with the watch (e.g., it doesn't match the description), she makes a counteroffer or files a dispute. o Bob can either agree with the counteroffer or escalate the dispute to the DAO for resolution. Use

Case 2: Digital Goods Marketplace Scenario: Charlie sells eBooks on a digital goods platform. Dana wants to buy an eBook.

1. Transaction Initiation: o Charlie lists an eBook for sale. o Dana applies to buy the eBook. o Charlie accepts the application, and both parties send the dispute fee and payment amount to initiate the transaction.

2. Item Transferred: o The eBook is digitally delivered to Dana. o The item is marked as transferred.

3. Buyer Response: o Dana is satisfied with the eBook and provides a ZKP signature. o Charlie also provides a ZKP signature. o The payment is released to Charlie after deducting the platform fee.

4. Dispute Scenario: o If Dana is dissatisfied (e.g., the eBook is missing chapters), she makes a counteroffer or files a dispute. o Charlie can either agree with the counteroffer or escalate the dispute to the DAO for resolution.

Use Case 3: Jobs3 – Online Freelancer Platform Scenario: Emily is a freelance graphic designer offering her services on Jobs3, a platform similar to Fiverr. Frank wants to hire her to design a logo.

1. Transaction Initiation: o Emily lists her graphic design service on Jobs3. o Frank applies to hire Emily for a logo design. o Emily accepts the application, and both parties send the dispute fee and payment amount to initiate the transaction.

2. Service Delivered: o Emily completes the logo design and delivers it to Frank. o The service is marked as completed.

3. Buyer Response: o Frank is satisfied with the logo design and provides a ZKP signature. o Emily also provides a ZKP signature. o The payment is released to Emily after deducting the platform fee.

4. Dispute Scenario: o If Frank is dissatisfied with the logo design (e.g., it doesn't meet the agreed specifications), he makes a counteroffer or files a dispute. o Emily can either agree with the counteroffer or escalate the dispute to the DAO for resolution. o Both parties submit evidence within 48 hours, and the DAO makes a decision within 24 hours.

5. DAO Resolution: o If the DAO agrees with Frank, the dispute fee is returned to Frank, and the payment is adjusted as per the DAO's decision. o If the DAO has a split payment conclusion, the fees and payments are distributed accordingly, ensuring a fair resolution.

Cryptocurrency Transactions

Current marketplaces seldom facilitate transactions in cryptocurrency, particularly without a DAO to manage disputes, highlighting a gap that the Three Protocol intends to fill.

Cryptocurrency Usage

The Three Protocol's platforms will empower consumers to transact in cryptocurrency for a wide range of goods and services, thereby promoting global cryptocurrency adoption.

Decentralized Marketplace Initiatives

The project will introduce decentralized counterparts to existing services, including:

• Jobs3: A decentralized alternative to Fiverr and Upwork.

• 3Taxi: A decentralized service akin to Uber with an upfront payment model for initial reviews.

• 3Bay: A decentralized platform for auctions and sales, emphasizing quick and impartial reviews.

• Auto3: A decentralized automotive marketplace.

• 3Eats: A decentralized food delivery service rivalling Deliveroo.

Distinctive Advantages and Propositions

Two-Way Referral Program

The project incentivizes user expansion through a referral program that rewards both the recruitment of new users and the enlistment of additional sellers or service providers.

Stakeholder Rewards

A portion of platform fees will be redistributed to those staking the $THREE token, fostering a vested community interest in the network’s prosperity.

Three Pay

A current global eCommerce problem is the lack of private cryptocurrency payment gateways with decentralised buyer protection mechanisms. Due to three protocols tri-proof smart contracts and their DAIO systems, all the features required to replicate the payment and dispute reconciliation elements found within popular fiat payment gateways such as Paypal and Stripe are inherent.

Therefore three protocol are developing the first ever buyer protection based anonymous private crypto currency based payment gateway. This gateway will be built upon an API interaction with the Tri-Proof smart contracts and the DAIO systems to enable any website or online store to accept cryptocurrency payments and offer buyer protection to their customers.

The online store will apply to the DAIO with CToP (Consensus Terms of Protocol) accompanied by a submission fee paid in the £THREE token. The CToPs will include instructions by which the DAIO must vote, which will be specific to the product, service, location and customer base the online store utilises. Once accepted, the CToPs will be included in a smart contract attached to the Tri-Proof and DAIO smart contracts visible on the host blockchain. DAIO members will then be required to make their dispute-based decisions in coherence with the CToPs, and any customer will have access to the CToPs prior to making a purchase.

Due to these implementations, Three pay has the capacity to be much faster than current payment gateways that are required to incur the delays of the swift system when transacting in a cross-border environment. It also have lower fees as the swift system charges users high cross border transactional fees. It will have the capacity to resolve disputes in a much shorter space of time, as CToPs can be configured to resolve disputes within hours. Three Pay will also have greater scalability as it will not require users to hold a bank account but rather just a crypto wallet, thus drastically lowering the barriers to entry for customers.