Dispute Resolution on Blockchain: An Opportunity to Increase Efϐiciency of Business Dispute Resolution?

Abstract

With the advent of blockchain technology and smart contracts, the ϐinance, business, and legal industries have witnessed a drastic shift in their modus operandi. A smart contract does not necessarily mean and include a legally binding contract as it is under the legal re gime but is instead a computer software built on blockchain technology, which is competent to self-execute its functions, as well as self-enforce its results. Smart contracts with the help of complex algorithms have raised the efϐiciency of conducting business online. Consequently, disputes pertaining to smart contracts have also increased. The utilization of smart contracts in the legal industry has assisted businesses in maintaining the efϐiciency gained in the initial phase of the process and resolving their smart contract and/or other disputes expeditiously. The pivotal question that knocks on our door is whether a decision rendered by an autono mous computer program is binding on the parties, speciϐically an award rendered in a smart contract arbitration? This article explores ru dimentary knowledge pertaining to blockchain and smart contracts, and analyses the validity of smart contract dispute resolution mechanisms and their role in enhancing business dispute resolution efϐiciency. Lastly, it sheds light on the legitimacy of smart contract arbitration under the international conventions which regulate international commercial arbitration.