Smart Contract SLA Conflict Resolution via Distributed Ledger
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Solution Overview
Problem
Resolving service level agreement (SLA) violations in industrial services is a lengthy and costly process due to inefficient conflict resolution and accountability assignment, which existing methods, such as those in cloud infrastructure and distributed cloud environments, are not adequately suited for industrial service environments.
Innovation Solution
Implementing a method and system that utilize smart contracts encoded on a distributed ledger for automatic conflict and accountability resolution, enabling automated monitoring and communication of SLA-related issues between service providers, contractors, and customers, thereby reducing human intervention and shortening conflict resolution times.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual conflict resolution processes are used with evidence collection and communication exchanges, then accountability and liability can be determined, but the process becomes lengthy and time-consuming
Solution Approach 1:
The smart contract system automatically monitors SLA compliance and resolves conflicts without human intervention. The system self-records evidence, self-evaluates compliance status, and self-executes penalty mechanisms, eliminating the need for manual evidence collection and communication exchanges while maintaining reliable accountability determination
Solution Approach 2:
The patent replaces manual mechanical processes (evidence collection, communication exchanges, consensus building) with automated digital smart contract execution. The smart contracts automatically monitor, evaluate, and resolve conflicts based on predefined SLA terms, substituting human-driven mechanical processes with algorithmic automation
2Reliability
If manual conflict resolution processes are used, then accountability can be assigned, but the process becomes costly due to extended duration
Solution Approach 1:
The automated smart contract system performs accountability assignment autonomously based on objective SLA metric evaluation. By eliminating manual intervention, the system reduces human labor costs, legal fees, and administrative expenses associated with traditional conflict resolution while maintaining reliable accountability assignment through cryptographic verification
3Reliability
If traditional SLA monitoring methods are used in cloud infrastructure, then service level agreements can be monitored, but the methods are not sufficiently suited for industrial service environments
Solution Approach 1:
The patent creates a universal smart contract framework that can be applied across diverse industrial service environments. The system uses standardized SLA metric definitions and evaluation mechanisms that can accommodate different industrial applications, making the monitoring solution adaptable and versatile while maintaining reliable SLA monitoring
Solution Approach 2:
The system allows flexible parameter configuration for different industrial service contexts. SLA metrics, thresholds, and evaluation criteria can be customized through smart contract parameters, enabling the same core monitoring mechanism to adapt to various industrial service requirements while maintaining reliable monitoring functionality
Data Source
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AI summary
A method for automatic conflict and accountability resolution in case of a violation of service level agreement (SLA) terms and conditions in industrial service applications is described. The method comprises the following steps: providing an industrial service by a service provider (11) to at least one device (14) or application of a customer (12) according to a contract (17) defining a customer service level agreement; providing repair and/maintenance services by a contractor (13) for the at least one device (14) or application according to a contract (18) defining a contractor service level agreement; encoding a customer service level agreement or a contractor service level agreement as a smart contract by an interpreter (16); providing a distributed ledger (20) configured for immutably storing contract and transaction data generated by a contracting party, the at least one device (14) or application or the interpreter (16); automatically monitoring and/or processing SLA related issues by running at least one smart contract (21) in the distributed ledger (20); and providing substantially automated communication regarding SLA related issues between the distributed ledger (20) and the service provider (11) by the interpreter (16). Further, a system (10) for automatic conflict and accountability resolution in case of a violation of service level agreement (SLA) terms and conditions in industrial service applications is described.