Frequently Asked Questions

Do on-chain anchored warrants have legal validity? What happens if a dispute arises?

(1) Why Do Warrants Have Legal Validity? – Digital Mapping Based on Legal Entities

The legal validity of warrants does not emerge in a vacuum but is built upon a strict mapping to existing legal systems:

Identity Mapping: The digital identity (DID) of a warrant holder must be verified against a legally registered corporate entity and qualifications in a sovereign country. The DID serves as the sole authoritative on-chain representative of the offline legal entity.

Asset Mapping: The physical asset (CID) anchored by the warrant strictly corresponds to offline property rights protected by local law (e.g., factory ownership, equipment ownership). The CID does not create new rights but acts as a digitized “mirror” and evidentiary record of existing legal rights. The physical asset rights confirmation agreement and clearing agreement signed by the enterprise provide a dual legal safeguard for the revenue and distribution rights represented by the warrant, ensuring full traceability to the underlying physical asset.

Relationship Mapping: Rights such as “revenue rights” represented by the warrant are codified into smart contracts, where the logic and terms correspond to and replace traditional paper contracts, forming an enforceable digital covenant.

Therefore, warrants are credible digital carriers of offline legal rights and relationships, not virtual items detached from the law.

(2) How Is Legal Evidence Provided? – Full-Process Judicial-Grade Evidence Anchoring

All key operations are solidified through authoritative nodes, generating admissible evidence for judicial proceedings:

Evidence Mechanism: Full-chain data—including the creation, transfer, and settlement of warrants—is synchronized in real time to joint judicial evidence storage nodes such as the Yan’an Cross-Border Trade Trusted Space and China Mobile.

Evidentiary Validity: This process complies with relevant laws such as the Electronic Signature Law of the People’s Republic of China. The hash values, timestamps, and other elements of on-chain evidence can be used to generate an Electronic Evidence Deposit Certificate, which has legally recognized probative force.

(3) How Are Disputes Resolved? – A Clear Pre-Defined Mechanism

The system has established a clear closed-loop dispute resolution framework:

Priority of Evidence: In the event of a dispute, the immutable, full-process on-chain evidence records serve as electronic evidence with priority admissibility.

Efficient Resolution: Parties are encouraged to resolve disputes efficiently through designated online arbitration institutions or mediation platforms in accordance with the smart contract terms.

Cross-Border Enforcement: Arbitration awards can be recognized and enforced in contracting states under international frameworks such as the New York Convention, ensuring effective implementation of rulings.

Summary

In summary, GEDIS precisely links on-chain warrants to offline legal entities and relies on national-level trusted nodes for evidence anchoring, providing solid legal protection for digital rights while offering a complete dispute resolution solution ranging from electronic evidence collection to arbitration enforcement.

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