@nihilist @monero Consider the following situations:
- Bob and Arbitrator are colluding against Alice
- Bob and Arbitrator are the same person
I think this system needs a higher authority to function properly. And there's a simple non-technical solution to this problem. If you don't agree with Arbitrator's ruling, you make the case public and provide proofs. As a result, Arbitrator's reputation is destroyed.
Someone can even create a rating service similar to @kycnotme that will list arbitrators with good reputation