If one does not use a wrapper for the arbitrator, this has one additional significant disadvantage:
Let's look at your example again:
- Weather insurance contract wants to know the weather as of day 10
- You make your insurance agreement on branch A of reality token on day 1
- Somebody makes a Reality Check question backstopped by arbitrator X, maybe someone else makes a different question backstopped by arbitrator Y
- On day 10, the answer is reported by the Reality Check Arb X question and the Reality Check Arb Y question. For these purposes it doesn't matter whether it was reported by somebody posting the highest bond, or whether someone asked the selected arbitrator to settle it
- On day 10, there is a branch A-A with arbitrator X, and a different branch A-B with arbitrator Y
- You can claim the funds from the weather contract on branch A-A, and also on branch A-B. If arbitrators X and Y gave different responses, maybe different parties will be claiming the funds on those different branches
If the arbitrator X was a good arbitrator over many years, but suddenly turns malicious between day 1 and 10, then the all the people bet on his correct answer in realitycheck will loose their money. RealityToken would only ensure, that the people bet on the weather contract get the right answer. But people betting in realitycheck on arbitrator X would loose their money, right? (They transfer money on branch A, and not matter whether branch A-A or branch A-B is valid, they will not regain access to these transfered realityTokens )
In my wrapper approach, even the bets on realitycheck will be secured by the realitytoken approach.
Over night I prepared a first look/draft of tokenized-events for the realitytoken eco system. It's super basic, but still I put some thought into it.
Contracts are also nearly finished.
I hope that this enables everyone to quickly create long and short bets on any event. The long and short tokens could then be traded on exchanges like instex (it's like idex, but for arbitrary tokens.) This would have a much much better performance than any trading experience augur is offering their clients.
Ah, this solves the replication system within forward looking systems.
In general I do not like utxo models, as you can not easily build smart contracts on them. Referring to some number stored in the realitytoken contract is so much easier than referencing to many utxos and splitting them.
But the idea is good. Currently we are storing balance_changes(address=>amount), maybe we can store them differently balacne_changes(address=> arbitrator=>amount)
... hm just thinking out loud