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      "body": "Congratulations @jetsesprey! You received a personal award!\n\n<table><tr><td>https://steemitimages.com/70x70/http://steemitboard.com/@jetsesprey/birthday1.png</td><td>Happy Birthday! - You are on the Steem blockchain for 1 year!</td></tr></table>\n\n<sub>_You can view [your badges on your Steem Board](https://steemitboard.com/@jetsesprey) and compare to others on the [Steem Ranking](http://steemitboard.com/ranking/index.php?name=jetsesprey)_</sub>\n\n\n###### [Vote for @Steemitboard as a witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1) to get one more award and increased upvotes!",
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{
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      "parent_permlink": "eos",
      "author": "jetsesprey",
      "permlink": "when-to-arbitrate-and-when-not-with-eos",
      "title": "When to arbitrate and when not with EOS",
      "body": "![EOS AMSTERDAM LOGO IMG_20180612_173627_160.jpg](https://cdn.steemitimages.com/DQmWjBCAPvWMz7CmBxouKEdieTacdv4bm69ovTer2k34mwu/EOS%20AMSTERDAM%20LOGO%20IMG_20180612_173627_160.jpg)\n\n\n\n\n\n\n\nEOS is a governed blockchain. Which ruleset will govern EOS will be decided by the voters shortly. The current proposals have in common that they are agreements between all users of EOS (end users and dApps and block producers).  \n\nRules need to be enforced in order to be effective. Agreements can be enforced easily. Each of the parties to the EOS charter/constitution/agreement is entitled to demand fulfilment of another party’s obligations. Each party is entitled to claim damages with a defaulting party.\n\nThere are many factions within EOS that strongly dislike any form of mandatory dispute resolution. Their views are that voting will, at the end of the day, rid the chain of bad players. This might be so, but that will not stop disputes from arising. This memo focuses on those disputes. \n\nThe discussions have been very confusing. This memo provides an analysis of the various elements of dispute resolution. It is meant to align the discussions. To prevent further confusion and distinguish the different elements of the discussion in order to allow for a granular approach.\n\nArbitration & Dispute Resolution (ADR) is not ECAF. If ADR is needed, any ADR provider that meets the standards and is willing to invest to get the necessary technical insights will do. \n\nThe question addressed here is not whether EOS should have ECAF or not but where and when ADR could be a viable solution whomever shall be the provider of such ADR.\n\n**Dispute resolution and execution**\n\nFirst we need to be aware of the distinction between dispute resolution and the execution of the verdict/award. This seems self-evident but a lot of heated debates are in fact more about the execution (no arbitration on the base layer! as an example) and not about dispute resolution itself.\n\nDispute resolution means that a third party decides a dispute between party a and b (or between party a on the one hand and parties b,c,d, etc on the other). This third party can be a judge or an arbitrator. Or a clan elder or a decision by 15 block producers. This is dispute resolution: not more (nor less) than having someone else decide who is wrong and who is right. \n\nSuch decision has to be executed. In the old world court decisions are being executed by bailiffs and ultimately the police. Arbitrators’ awards are executed quite similarly: one has to get a court order (easily obtained in principle) and then such court order can be executed as any other court order. Execution happens inter alia by attaching and the forced selling of assets of the losing party. Within EOS only the block producers have the power to actually do something.  We shall investigate if it is a good idea to use such powers within an ADR context.\n\n**Dispute resolution**  \n\nIn the event of a dispute there will always be a competent court. The question is therefore simple: when would arbitration (ADR)  be better than courts? \n\nObviously EOS dispute resolution should be limited to disputes connected with EOS. EOS is not there to provide ADR to all disputes of the world. Such EOS ADR solution will require arbitrators that know the law and know EOS. \n\nFurther: this memo is not about voluntary arbitration. The parties concerned could always choose to go that route. If and when ADR is the best choice, the community should make it mandatory unless the parties concerned agree to opt out.\n\nWe distinguish the various types of conflicts and will advice whether or not mandatory ADR is good, not necessary or bad. \n\n**Block producer vs block producer**\n \nOf course block producers work together diligently to make EOS a safe and efficient system. \n\nHowever, disputes may arise. E.g. if a block producer does not comply with the BP agreement, under all proposals that would mean other bps can claim their damages with such BP or claim fulfilment of such BP’s obligations. Another example is if a block producer provides false information about its competing block producers. \n\nAlso, under the current Constitution, bps could sue in the event of vote buying. Block producers that did not buy votes, get a smaller amount of EOS. They are entitled to claim that damage with the vote buying parties.\n\nIt makes sense to settle all of this through ADR. This is in the self interest of all block producers except for the ones, if any, that are planning not to comply. Lack of ADR will mean that block producers could get sued in their own country but, possibly, in many others too. A competent court can be found in a number of ways and the claimant will see to it that the defendant is being subpoenaed before the claimant’s home court. \n\nNot suitable for ADR are non-EOS disputes. E.g. a block producer could steal vital personnel from another one. This should not be dealt with through EOS ADR.\n\n**Block producer vs account holders**\n\nDisputes here may arise when EOS is down due to a mistake made by one or more block producers. This seems unlikely but it is not impossible. Another example is when a block producer fails to timely blacklist an account (provided that obligation will still be there in the charter/agreement that gets voted in by the community. \n\nDamages could be very high. Also block producers may be forced to block certain content (by blacklisting accounts) that is in the account holder’s  jurisdiction perfectly legal. \n\nOne could argue that the block producers provide just a technical infrastructure and cannot be liable, but that is legally not so. Block producers certainly can be liable. And if the damages and frustration of the other party are high enough, they will get sued.\n\nAgain it makes sense to offer ADR here. Not only to protect the block producers against having to show up in a court that is alien to them, but also to offer a system to hold them accountable. Accountability of the block producers will raise trust in EOS. \n\nAlso here disputes that have no relation to EOS should not be subject to ADR. So if a block producer’s CEO hit someone on the nose, it should not get through the ADR.\n\n**Account holder vs account holder**\n\nThe number of conflicts is limitless. From theft through offering of securities without a license, from fraud to delivering goods and services that allegedly do not comply with the agreement etc. etc.\n\nIt is not possible to address all of these highly diverging disputes in some catch all phrases. We have therefore broken down the various types and address them below:\n\n**Defaults regarding the agreement between user and dApp**\n\nE.g. the delivered goods or services are delivered late, they are not compliant, against the local law etc. \n\nThere is hardly any added value here to provide ADR. The dispute has nothing to do with EOS. EOS is just the technical infrastructure. The claimant shall have to go to the court or to the ADR agreed upon with the dApp provider.Another point is that within such a broad array of disputes a specialized ADR body doesn’t have much added value. \n\nSo no ADR in these cases.\n\n**Defaults regarding the offering of specific EOS services**\n\nThese could be mistakes made with the buying and selling of EOS. The service provider, e.g. an exchange, could be liable in numerous ways. Here the choice whether or not there should be ADR is more difficult. Specialized ADR will have added value here. Also the possibility to hold parties that work with EOS accountable, will raise trust in the system. It will further provide a global recourse for victims of mistakes made by exchanges and other EOS service providers. \n\nFor the EOS service providers ADR means they cannot be subpoenaed before the court of the claimant. In that sense ADR provides clarity and security for them as well. \n\nWe believe therefore ADR here, might be preferable. \n\n**Theft and fraud**\n\nA lot has been said about theft and fraud. Of course having no theft or fraud is preferable, The EOS community works on ways to decrease that chance. However, we have to deal with the obvious: theft and fraud are here and probably will remain here. \n\nLegally a claim based on theft and fraud is mostly a claim by a known claimant against an unknown criminal. That doesn’t change the nature of the ADR: it is still dispute resolution between two parties: the thief and the rightful owner. ADR is not replacing the police in any way. ADR remains a ‘peer to peer’ dispute resolution.\n\nIt is further obvious that local law enforcement cannot help the victim. They will not be able to find the thief. Also given the international character of EOS.\n\nExecution here is vital. In many of the other cases, onchain execution is not always necessary: one should easily be able to get a local court order and execute that. The defendants will often be tangible companies and if they are not, with ADR the claimant runs into the same executional issues as with a court case. The exception is probably only that onchain the block producers may blacklist a dApp: that is a effective way of executing an award that is just not there offchain.. \n\nIn theft and fraud cases it is self evident that without ADR and onchain execution, a victim doesn’t have the means to get justice done. He doesn’t even know the thief’s identity. With ADR the victim will at least have an arbitrator’s award and just maybe, if he is lucky and execution of such awards has been a block producers’ task, he might get his EOS back. Of course in many cases the EOS will be gone given the current way EOS works.But also now accounts are effectively frozen and some people do get their EOS back. \n\nADR should therefore be mandatory in these cases, provided there is some sort of execution of the awards. Efficient ADR will allow for more trust in the EOS system and will effectively allow justice to be done. Something that won’t happen without ADR.\n\n**Execution**\n\nADR decides on cases between a claimant and a defendant (or more claimants and more defendants). The decision in a case does not lead to any obligations for anyone else than the parties unless generally applicable rules stipulate otherwise. \n\nA court order can be executed by the police and bailiffs since this is detailed in specific legislation. In such rules it is further detailed if and to which extend third parties will have obligations. E.g. a bank ( a third party) can be forced to pay sums that belong to the defendant to the claimant following a court order issued between those two parties. The same goes for an central exchange.\n\nWithin EOS itself only one type of actors can actually do something: block producers. \n\n15 out of 21 active block producers can do all they wish with accounts. It is therefore technically possible for them to jointly execute awards in the event that can be done by blacklisting or seizing the EOS on an account. \n\nIf it is possible, should they be obliged to do so? Surely the block producers would prefer not to. Executing awards and other verdicts is not automated yet. It is hardly scalable and therefore a costly and risky operation. Risky since mistakes will be made (and are made) and such mistakes might cost the respective block producer dearly. \n\nBut without execution, the ADR system fails in a number of cases. And without ADR the legal insecurity and risks for all would grow considerably. Therefore within the limited scope an ADR result should be executable by the block producers. \n\nThe execution block producers do should be carefully detailed and also be limited to the minimum that is necessary to make ADR functioning. We believe that will include blacklisting accounts. And restoring the original owner to an account in case of theft. Please note that such restoring can only be done following an ADR award. The arbitrators shall have to carefully establish whether the original owner can proof ownership. If not, they should refuse to grant the award.\n\nAs for executing ADR awards that grant damages to a party, block producers could also seize EOS on an account and pay those to the claimant. They could, but we are not sure if they should. The powers to attach EOS on accounts are scary. It could be tempting for block producers to seize EOS without the proper proceedings. On the other hand, providing the possibility to seize online assets, such as EOS, will help to make EOS mainstream. And will help to establish effective ADR.\n\nWe take due notice of the fact that ADR may be flawed and in some countries offline courts not being as impartial as in others. We therefore support the idea of an extra protection of the defendant. An ADR that results in the seizure of EOS should therefore only be executed with a court order from the country in which the defendant lives. This rule protects the defendant and respects the various cultural differences of this planet.\n\nPlease note that given the current rules on liability of providers of digital services in the EU, the block producers may already be liable in the event they are aware of something illegal (theft, illegal dApp) and don’t take action to stop that illegal situation. In other words: it is very well possible that block producers don’t have a choice but to execute since not executing would mean to become liable for letting an illegal situation continue.. \n\n**Conclusion**\n\nWe believe there should be limited ADR. And a limited package of executive actions with the block producers in order to make EOS a functioning governed blockchain. Block producers should blacklist accounts upon an ADR decision. Block produces should further execute ADR awards by transferring EOS but such transferring only following an ADR decision and a confirmation by a competent court in the defendant’s home country.\n\n\nAmsterdam, 29 November 2018",
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      "title": "",
      "body": "Hey,Is the basic privacy advice only provide the other demands that come with EU privacy regulation?",
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      "author": "jetsesprey",
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      "title": "EOS dApp producers: GDPR help offered",
      "body": "Privacy might not be the first thing you are concerned with when working on your dApp but it should. Some simple principles you need to abide by NOW will save you a lot of trouble later on. That is, if you want your dApp to serve European Union citizens too. Citizens that together form the second biggest market of the planet: the European Union.\n\nEOS Amsterdam provides basic privacy advice on your worker proposals or other projects. Like: when do I need consent. How can I work around consent? How do I get consent if needed? Could it be given with the acceptance of my T&C? What are the other demands that come with EU privacy regulation? \n\nIf you send in your project we shall provide you with our high level first impression of your proposal. This will enable you to tweak the proposal to better align with the EU privacy regulation, believed to be the strictest in the world. \n\nTogether we’ll establish a reasonable compensation for our work. Depending on the complexity of your dApp. To be determined before we begin working.\n\nWe’ll help you all the way with your questions or if you want to double check the implementation of our advice. We can also provide you with a legal opinion regarding the compliance of your dApp. Costs of which we’ll determine on a case by case basis or on the basis of our standard fees.\n\nThese are the privacy principles you need to work with right now:\n1. Data minimization. Don’t collect, store or use more personal data than you need.\n2. Legal basis: If you really need the data to execute a contract: fine. If not check if you feel intrusive (e.g. if you follow people on or offline you are intrusive). If you feel you are intrusive, ask consent. Try to avoid bundled consent. There should be a real choice for the data subjects.\n3. Ensure that the personal data can be deleted/changed. Think hard which data you store where. It makes all the difference. That’s also important because of the principle of data minimization.\n4. Keep an eye on security. Security requirements are of a high standard in the EU. Security needs to balance the risks, costs and technological possibilities. This is a challenge since vulnerabilities are discovered every day which results in technology that seems to have become a fast moving target.",
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      "permlink": "choices-when-drafting-a-new-constitution-for-an-eos-decentralized-community-platform-aa1e950e475cd",
      "title": "Choices when drafting a new constitution for an EOS decentralized community platform",
      "body": "Introduction\n\nA constitution is about distributing power and checks on that power in such a way that the community rules in a fair way. \n\nEOS Amsterdam is supporting the community. We have decades of experience in setting up governance structures onboard. This memo is meant to share that knowledge and help the community to vote and to help drafting. This memo aims to bring focus to the current debate.   \n\nWe have identified bodies and functions. Power is about allocating functions to bodies. Governing is about splitting power to allow for checks (anti-corruption) to ensure the community benefits. With EOS bodies operate decentralized. A body in a constitutional sense could consist of multiple entities. E.g. BPs.\n\nOnchain and offchain are intertwined. There are numerous levels of interaction. If the constitution is improperly drafted, offchain will overrule onchain. We want to prevent that as much as possible. For the sake of predictability for all and of compliance management. Otherwise we would have to deal with huge regional differences.\n\nAt first we have to do some soul searching: what are we?\n\nWhat we are\n\nWe should try and define our community. Only after doing so, we can effectively talk about how to rule. We need to know what to rule before we make decisions on how to rule.\n\nWe are EOS. We provide a self sustained technical infrastructure that will allow billions of people to organize their lives and businesses. \n\nThe fundamental question is: do we want to meddle with how people do that or do we just want to provide a sustainable infrastructure? We at EOS Amsterdam believe the latter. We shouldn't enlarge our scope to happiness or prosperity for all. It's too vague. We believe strongly EOS might help to achieve a lot of that, but that doesn't mean such moral notions should interfere with our work. In that respect the current constitution is too broadly written.\n\nThe Community\n\nThe community is the highest body. From the community stems all other power. The community determines the constitution and as many other rules as they deem fit. But its powers shouldn't be unlimited. The individual member should be protected as well as minorities. \n\nProtecting individuals and minorities is typically done by providing fundamental rights such as right to property, the right not to be judged for actions that took place before a rule was implemented, the right to be judged by an impartial judge and the like. Further the minorities are protected because the constitution cannot be changed with a simple majority of the votes. As is the case in both EOS constitutions.\n\nBlock producers, dApp devs, users\n\nThe constitution defines which body does the actual work. Who is responsible for what. If we were to elect one body to control the chain, this body would be omnipotent. Such body could do as it pleases. Therefore a good constitution splits up the power of such body. This is done, in both versions of the constitution, by making such bodies subject to voting (BPs) and arbitration (all). Basically this is taking power away from the executive and redistribute that powers to the community and arbitration.\n\nHaving said that, let's look at the various actors and their powers.\n\nBPs\n\nBlock producers control the chain but in our view they do so by providing a technical commodity. They shouldn't be deciding about good or bad, about lawful or unlawful. About compliance. They should run the chain and keep it healthy. Just like a good ISP does in the old world. \n\nThey should follow code. However, BPs should also implement verdicts. E.g. freeze accounts that are stolen. But never on their own initiative. Only when they are compelled to do so by a ruling by an arbitrator of by a judge. Arbitration could be within EOS but also an offchain judge could order a BP to act in a certain way and such BP would have no other choice than to comply. \n\nTo us, as BP, code is law as are rulings issued following due process. BPs should in essence be blind to the morality or compliance with laws of the work they do. Only extraordinary circumstances may force a BP to act outside of these limits. \n\ndApp devs\n\nThe dApp devs interact with the users. They have a far broader responsibility. They must ensure compliance with outside rules and regulations. For them code isn't always law. They can introduce all kinds of criteria. Like \"fair\".  \n\nUsers\n\nUsers are, eventually, the real actors on EOS. Once a dApp is onchain the responsibility to use such dApp will be the users'. Each user will be responsible and liable for such user's own acts or omissions. Even if the dApp itself is against the law, the user pays the price. Users are also fully subject to arbitration.\n\nChecks and balances: arbitrators\n\nThe work of a body should be controlled. Otherwise power can be abused. Checks and balances need to be in place. This can obviously not be a voluntary pick. No one would voluntarily chose to be punished. \n\nBPs have a huge responsibility. They control the chain. There are checks in place. The first one is that the community can vote a non-functioning BP out. This is an extremely important check on their work. However this isn't sufficient since for a profound change in votes to take place the wrongdoing must be widely known. Further voting happens after the act and doesn't compensate for damage done. Therefore we need further checks.\n\nThe dApp devs and the users should also be controlled. There should be means to stop illegal actions. If an illegal dApp is running, it should be stopped. This would typically be after complaints of users or against users. Someone has to ensure such dApp is removed.  That someone shouldn't be a block producer. A block producer doesn't have an opinion. We execute. \n\nSo we need courts. Or arbitration. The choice is do we provide courts (arbitration) ourselves or do we let outside courts interfere. Own arbitration is preferable since the arbitrators will then apply as much as possible one worldwide EOS rule set. It is possible to limit the scope of our own arbitration but that will result in plaintiffs seeking remedy with outside courts for all that fall without such limited scope. Therefore also bonds do not help. They limit exposure and will leave room for outside courts to step in. in order to work, arbitration should be mandatory. All EOS members should be bound to it.\n\nConclusion\n\nWe encourage every member of the EOS community to debate further on the best choices to make. We have offered our in depth knowledge hereinabove. We are willing and eager to further participate in the discussions. To serve our EOS community.\n\n\nAmsterdam 18 July 2018",
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      "body": "Congratulations @jetsesprey! You have completed some achievement on Steemit and have been rewarded with new badge(s) :\n\n[![](https://steemitimages.com/70x80/http://steemitboard.com/notifications/voted.png)](http://steemitboard.com/@jetsesprey) Award for the number of upvotes received\n\n<sub>_Click on the badge to view your Board of Honor._</sub>\n<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>\n\n\nTo support your work, I also upvoted your post!\n\n\n**Do not miss the [last post](https://steemit.com/steemitboard/@steemitboard/steemitboard-world-cup-contest-tunisia-vs-england) from @steemitboard!**\n\n---\n**Participate in the [SteemitBoard World Cup Contest](https://steemit.com/steemitboard/@steemitboard/steemitboard-world-cup-contest-collect-badges-and-win-free-sbd)!**\nCollect World Cup badges and win free SBD\nSupport the Gold Sponsors of the contest: [@good-karma](https://v2.steemconnect.com/sign/account-witness-vote?witness=good-karma&approve=1) and [@lukestokes](https://v2.steemconnect.com/sign/account-witness-vote?witness=lukestokes.mhth&approve=1)\n\n---\n\n> Do you like [SteemitBoard's project](https://steemit.com/@steemitboard)? Then **[Vote for its witness](https://v2.steemconnect.com/sign/account-witness-vote?witness=steemitboard&approve=1)** and **get one more award**!",
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      "body": "Today EOS was governed. Today the EOS blockchain stood out from mere code as 21 Block Producers and all of the standby BPs made a decision: to overrule the code and freeze five accounts. Five people could prove they were spoofed and had received incorrect private keys. Five people that would have lost all EOS on their accounts. \n\nHow was this meant to go? The ECAF rules allow for emergency arbitration. However, the arbitrator appointed handed the matter back to the community. He choose not to rule. I don’t know his reasons yet but for now that doesn’t matter. \n\n**What happened?**\n\nA lengthy zoom call followed. Some BPs found they shouldn’t do anything. Especially since the BP agreement states that a BP should only freeze an acount following a valid arbitrator’s ruling. The dilemma was that the arbitrator stated that in this particular case he couldn’t rule (which is not extraordinary, that can happen) and referred the matter back to the BPs. 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The other BPs argued that if the house is on fire, you put out the fire first and ask questions later. \n\nEOS Amsterdam wanted to freeze the accounts. We believe that in situations like these one needs to take responsibility. \n\nA technical explanation from EOS 911 convinced the BPs to freeze the accounts temporarily so more time was available. A new smart contract on Etherium could proof the truthfulness of the owners of the scammed accounts. The community decided unanimously to indeed freeze the accounts. Each of the BPs and standby BPs wished to check the evidence first. At the end they all agreed: not freezing the account would mean genuine owners would lose their EOS. \n\n**What lessons are to be learned here from a legal and governance perspective?**\n\nFirst of all: the system worked. The community defined an action that was good. Spoofing didn’t get rewarded. Legitimate owners can probably hold on to their EOS. The community filled a gap in the rules. The following questions got satisfying answers: what to do if for some reason arbitration doesn’t work? Should we do nothing or act? Should we follow the letter of our BP agreement or find a way out? To me it is clear that n this particular case the decision made was right. Another decision would have meant an unfair result and might have had negative impact on EOS. \n\nSecondly: the legal takeaway is that the idea of EOS Constitution and the BP agreement are as they are now difficult to manage. Because it is not clear what happens when a gap occurs. There is no last resort clause or entity that has authority to act in the situation where, contractually, no one else has authority. From a contractual point of view, this might lead to liability in case of a wrong decision. If, e.g., the spoofed accounts weren’t spoofed. \n\n**Minding the gap** \n\nWe could solve this issue now. It is the process of minding the gaps. One learns when one goes along and adapts the docs to new insights. In this case we could introduce an article in the Constitution that stipulates that BPs are allowed to act once such act is based upon an unanimous decision by the BPs and standby BPS together and such act is in the interest of the community. Further such article should stipulate that the BPs wouldn’t become liable provided, however, that they acted in good faith. (Meaning: they are not liable if they could have reasonably been of the opinion that what they were doing was the right thing.) \n\nLegally we would contractually introduce some kind of meeting that has the authority to temporarily correct and amend the Constitution and the related documents in specific cases where arbitration doesn’t work and the BP agreement leads to an clearly unfair outcome. This looks in fact a lot like the organization of many companies/association where there is always such a gathering, sit down, that can act on behalf of the organization. \n\nIt is the hybrid face of our documents: they are a contract but we organize governance in them. Governance is typically organized in bylaws or articles of association. Realizing that might help: we could look how others did this. There are tons of valuable insights out there.\n\nWe did start something incredible here. Something completely new. Something that hasn’t been done before. Yet, humanity has met a lot of our current challenges before and resolved the, Let’s use ancient knowledge to strengthen our brand new and beautiful community. \n\nAmsterdam, 17 June 2018",
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