Comment by kalenvale
3 hours ago
In practice, anyone with sufficient funds can become a broker. The pseudo-random selection process means that the probability of Broker A being chosen to audit or inspect an item is positive. If Broker A accepts and validates an item they are unfamiliar with, regardless of its actual validity, the likelihood of a dispute arising increases. Since Broker A lacks knowledge about the item, proving their case becomes challenging, potentially resulting in financial losses. Over time, this situation should lead to a pool of brokers with expertise. Consequently, the system is likely to attract a continuous stream of experts, as expertise will prove itself financially advantageous.
If A could gain sufficient funds through expertise in one area (by way of validating contracts), could it feign/game expertise in area B by having enough funds to recoup the losses from disputes? Or would such a situation be prevented?