Loxe Inc. Unlocking Social Potential on the Cardano Blockchain
Sustainable ADA | Apr 4, 2022
Loxe Inc. was co-founded by Matthias Sieber, Eli Selkin, and Victor Corcino. They are a “remote-only, highly distributed team servicing the citizens of the world, by enhancing existing and innovating novel systems with the purpose of unlocking social potential for a better world for all”.
At Loxe they have a vision to “co-create the leading distributed, functional, ledgered ecosystem for conflict transformation (DeFLECT).”
Their solution is going to disrupt the alternative dispute resolution (ADR) industry.
Matthias Sieber, CEO of Loxe has been thinking about this project for quite a while , but his vision did not start to develop until he entered the Project Catalyst space during fund 6 in 2021.
“While I had plans for Loxe Inc. written down since 2017, it really started to shape in August 2021 when I started to plan out what shall become the ‘Win-Win Dispute Resolution’ marketplace in Project Catalyst Fund6. Internally it’s now known as mediators.ai and we hope in a few months it will already serve thousands of disputing parties and hundreds of mediators.”- Matthias Sieber, CEO of Loxe Inc.
Loxe Inc. becomes official:
“It became evident to me that Victor Corcino and Eli Selkin were key figures in realizing these ambitions in September/October of 2021. We co-founded Loxe Inc. in November 2021.”
Currently at Loxe Matthias is the CEO, and said with the current position, “it’s the best fit for me and the company at this stage and for the next years to come”.
Victor Corcino is the COO, and Eli Selkin is the CTO. Together they have founded Loxe with one another, their team currently includes six other individuals found here. The company has plans to grow to a team of 20 by the end of the year.
What led Matthias to co-founding Loxe Inc.?
“I think it’s a combination of unfortunate generational trauma, a sub-optimal childhood, getting a C64 at elementary school age, hacking, military service during a civil war, rejection, boredom, free Berkeley lessons on YouTube, a full-ride scholarship, and the inefficiencies and inequalities in not only the traditional western legal system, but alternative dispute resolution as well. This would have also not been possible if it wasn’t for my spouse who in addition to her demanding job covered my slack when it comes to my chores. She has been there for me when things aren’t going the way I want them to. Project Catalyst and the early approval of important stakeholders gave me confidence that we are on the right track.” – Matthias Sieber, (CEO) Loxe Inc.
Current issues Loxe Inc. defines in the alternative dispute resolution (ADR) space:
Marketing / Bias
Due to the market conditions, mediators are often required to go out and find clients on their own — this is especially true to new graduates from ADR programs. This situation leads to some potentially bias-forming — and thus very questionable — social media interactions with people that may end up becoming the mediator’s clients.
ADR specialists spend too much time on finding a time that works for them and the parties.
Negotiation on price
ADR specialists who do not want to negotiate on the price of their services delivered should not have to be put in the situation where this is a possibility as this could negatively affect the ADR process.
While mediators typically require payment prior to the mediation, even well-established and experienced mediators may experience difficulties receiving payment.
ADR specialists have no way to verify present their credentials, types and numbers of cases handled, nor success rates.
What are the main issues Loxe Inc. plans to solve?
- The main issue they plan to solve is a “long turnaround and lack of access to service providers and clients.”
- Loxe explains that “for a client (i.e. disputing party), it is often difficult to find a suitable ADR professional, and it often takes several months or years to solve a dispute.” With the quick one week turn around they will be able to revolutionize the dispute resolution space, and their ADR specialist will be able to provide more mediations.
- Their solution will minimize issues that current ADR specialists are faced with. Presently in the ADR space there are problems with “customer acquisition, bias-forming transactions, and scheduling difficulties”.
How they will solve it?
- Loxe is building an ecosystem that will start with a few distinct marketplaces (mediators.ai, arbitrators.ai, ombuds.ai), which will connect disputing parties with verified and highly-skilled ADR specialists.
- The goal with Mediators.ai, and its sibling projects is to make the process more efficient including both costs, and speed. Additionally it will focus on creating an overall fairer system.
- Loxe is able to achieve this with blockchain technology, and AI. Currently they are specifically working on the Cardano blockchain.
- Another initiative Loxe is implementing is an education component to help provide information about ADR to all.
The Loxe Inc. ADR Solution
Loxe is developing three distinct ADR solutions (mediators.ai, arbitrators.ai, ombuds.ai) that sync up together, and work with one another. Mediators.ai, Arbitrators.ai, Ombuds.ai all present separate revenue streams, but are all part of the bigger ecosystem which helps make up Loxe Inc.
To create greater awareness, and highlight the advantages that can be added to the current ADR space “Loxe Inc. uses its partnerships with universities and connections to other ADR-credential issuing organizations to supply and improve its services, and the deep and wide-reaching connections within the Cardano ecosystem to drive awareness of and demand in our services”.
Source: Loxe Inc. White Paper (Sieber et al., 2022)
For Mediators.ai. the biggest competitive advantage is speed because currently all competitors need many months to schedule and prepare for mediation. In the Loxe whitepaper they state the current turnaround for a mediation is about 152 days. The platform Mediators.ai will allow for a mediation to have a turnaround time within one week. This could save people a total of 145 days and is an alternative solution for dealing with current processes in seeking mediation.
What can the Mediators.ai Platform provide?
Solving the dispute within one week
By utilizing Cardano, proven technologies, best practices, and by leveraging their partner network, Loxe can help solve disputes within one week.
Certified mediators on Cardano
Parties want to easily identify a good mediator and mediators want to showcase their credentials to signal their expertise in the field. Loxe partners with credential-issuing universities to issue DIDs (digital ID) to verified mediators that are graduates / alumni of the respective ADR programs.
Privacy and confidentiality
Confidentiality is a mandatory topic for any ADR education as it relates to the varying ADR processes.
Less understood is the desire for privacy. In many cases, a party is not inclined to an- nounce their participation in a mediation publicly. Respecting a party’s privacy is essential. Also, some ADR specialists prefer to keep their professional profile private. Mediators.ai guarantees that confidential information is kept private in compliance with laws and ethic codes.
For ADR specialists, they may provide the ability to create public and private profiles, depending on their preference. Which was expressed by many mediators when the Loxe Inc. team did interviews in Brazil.
Graph algorithms to find the best mediator for parties
Taking parties preferences, availability, and budget into account, the proprietary graph algorithms Loxe created selects the best mediator for the case.
Parties and mediators alike will simply input their availability. Then mediators.ai will find the best match and schedule the mediation.
Smart Contracts on Cardano for secure payment/refunds
Payments are handled on the Cardano blockchain and thus are safe and guaranteed. Fair replacement/cancellation policies protect parties and mediators from financial burden caused by life’s unpredictability.
(Sieber et al., 2022)
arbitrators.ai will bring the benefits of mediators.ai to arbitration (Sieber et al., 2022).
“In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.” – WIPO
Participants of our 2021 survey had most commonly experienced issues in the workplace (e.g. 16.36% experienced workplace grievances that were not taken seriously). Ombuds can not only help solve acute issues, but have the potential to improve relationships within an organization to the benefit of the organization and its members (Sieber et al., 2022).
When asking Matthias why they decided to choose Cardano he replied,
“It has become clear to me that the community of people who want to make the world a better place for all keeps me here”.
Challenges during the Process:
When developing Loxe there were some challenges during the process.
“Payment issues are real. We ran into all kinds of issues when setting up our corporation, just because not all of our directors are US-based. We have specific issues in the alternative dispute resolution industry that we tackle. Verifiable credentials, payment/refunds are important aspects that we can solve with Cardano” (Sieber et al., 2022).
Technical details on how Loxe solves this with Cardano found here.
“There are plenty of other issues outside our domain that I find interesting and important to solve in terms of sustainability and impact.” – Matthias Sieber, (CEO) Loxe Inc.
How Loxe Inc. Connects to Sustainability and the SDGs
The United Nations’s 17 Sustainable Development Goals (SDGs) are an urgent call for action by all countries. This enables countries to create global partnerships that work towards achieving these goals. The goal is to achieve the SDGs, which are built upon decades of work by countries and the UN.
Blockchain technology is a key technology for the SDGs because it enables stakeholders globally to have the ability to track, record, and share data that is immutable, timestamped, and verifiable.
Loxe Inc. is directly connected to SDG 16 Peace, Justice, and strong institutions, and SDG4 Quality Education.
Loxe Inc. a plan for ADR Education for all:
Loxe has a strong focus on SDG 4 Quality Education, where they want to create an ADR education program for all. Planning to create educational content for ADR professionals with a focus on training new mediators and arbitrators to help grow their ecosystem, which in turn helps them achieve higher quality standards.
Loxe Inc. is an anagram of the word lexicon which is defined as a “branch of knowledge” by the Oxford dictionary. Which shows that education at Loxe Inc. is a core value, and “high on their list” as seen in the white paper. They plan to develop an educational component which is focused on ADR; for both Industry professionals and the general public.
Currently Loxe states “In some jurisdictions, located far from large commercial centers, the offer for mediation and arbitration is very limited, and the culture of solving issues through ADR has not been developed yet”. The Loxe Inc. ADR solution will be offered online, and because of this it will be available to everyone. Loxe has a plan to provide ADR education to an “unserved part of the population”.
Loxe Inc.’s other plans for Education:
“Language education is a vertical of high interest in which many of us on the team have experience. For Fund 8, we will also propose a shared housing application in the DApps & Integrations challenge. I’ve built one for a non-profit together with Eli and our UX designer before starting Loxe. But that non-profit was poorly run and our app was not as effective as it could have been in bringing people that face housing insecurities into suitable shared housing. Implementing this on Cardano would address the sustainable cities and communities SDG 11. “ – Matthias Sieber, (CEO) Loxe Inc.
Loxe Inc.’s solution will also help improve the culture of ADR globally.
“In some places (e.g. Latin America), the culture of using ADR instead of litigation is still limited mainly due to the unfamiliarity of the majority of the population with these alternative methods. The court systems in some countries, such as Brazil, are always crowded with legal proceedings and it usually takes years until the sentence is given. In many cases, all parties would benefit from a faster outcome, achievable through ADR in general and even faster using Loxe’s services.” (Sieber et al., 2022).
Because of these opportunities Loxe will create educational material to help present the benefits and alternatives to any potential client. Which will help with their marketing strategy and will be essential for them to expand the size of the current ADR market.
The following tentative roadmap and milestones will guide the development of ombuds.ai during the first 4 years of the project.
- Commence development of MVP
- Launch MVP on Cardano, web version
- On-board first 5 ombuds 2024
- Launch MVP on Cardano, mobile version
- Total of 50 ombuds on-boarded
- Total of 5 partnership agreements with institutions
- Deploy improvements on ombuds.ai – evolution after MVP 2025-2026 • Total of 150 ombuds on-boarded • Total of 15 partnership agreements with institutions
How Loxe Inc. will track the progress and success:
Key Performance Indicators (KPI’s)
Initially, the following KPIs will be used to track ombuds.ai growth and performance over time:
• Number of ombuds signed up
• Number of companies signed up
• Number of deals set up
• Volume of ombuds’ rewards transacted
• Number of partnerships with private institutions
• Number of partnerships with public institutions
• General ombuds satisfaction
• General company satisfaction
Past Prizes and Competitions:
How to get involved with Loxe Inc.?
“We have a slow growing careers form accessible on our website. We will also continue to put proposals forward in Project Catalyst. There are great communities and working groups in the Cardano community. When it comes to peace, conflict transformation, and alternative dispute resolution, reach out to us via the various channels you can find us.” – Matthias Sieber, (CEO) Loxe Inc.
Watch Loxe Inc. on Hashoshi: A VERY unique project on the Cardano blockchain! (Cardano Project Catalyst!)
More ways to learn:
- For more on ‘Win-Win’ as a whole, read more here.
Sieber, M., Selkin, E., & Corcino, V. (2022, March 1). Loxe Inc. ADR Token. [White
Paper]. Loxe Inc.