You must have had experiences like these: returning items on e-commerce platforms requiring a process, disputing unauthorized credit card charges with the bank, or arguing with customer service over a wrong delivery address. These issues share a common trait—they are both time-consuming and frustrating, and in the end, you often don’t know if you’re talking to a new employee or an AI bot.

How are traditional payment disputes handled? The process is fixed: you submit evidence, they review it manually, negotiate with multiple parties, and finally, the arbitration department makes a decision. It can take a few days if quick, or several months if slow. Every step requires someone’s involvement, making the costs exorbitant and the efficiency painfully low. Moreover, centralized platforms hold the final interpretive authority, leaving users with little say.

Blockchain payments originally aimed to solve this problem—transactions are fully transparent, and data cannot be altered. In theory, disputes should be significantly reduced. But in reality? When on-chain payments go wrong (such as sending to the wrong wallet address or falling victim to phishing scams), it’s even more despairing than traditional payments. No customer service hotline, no arbitration agency—once the code executes, it’s final. Cold and impersonal, with no room for maneuver.

Vanar Chain seeks to find a breakthrough in this dilemma. But instead of creating some "on-chain arbitration committee," they have a bolder idea: directly integrating AI as a "built-in judge" within the payment contract, capable of identifying risks before disputes occur and automatically making rulings once issues arise.

Let’s start with the deadlock of traditional payment disputes.

What do traditional payment networks like Visa and PayPal rely on to handle disputes? A centralized rule database combined with manual review. The system first uses preset rules for initial screening, such as assessing transaction amounts, locations, and abnormal account activity.