Blockchain and Smart Contracts and the Role of Arbitration

Abstract

Blockchain technology is considered one of the most disruptive technologies of our times. At the same time, by means of smart contracts stored on a blockchain, all or parts of an agreement can be executed automatically upon certain triggering events. Some consider that with smart contracts becoming more and more complete and self-executing, we will enter into an era of dispute resolution without the involvement of a neutral third party (conciliator, mediator, arbitrator) or even an entirely dispute-free environment. By contrast, it is submitted that disputes are inevitable. The question is not whether disputes arise, but which means of dispute resolution are best suited to resolve disputes arising in the context of blockchains and smart contracts. While not the only mechanism, it is submitted that arbitration is particularly well-suited for many types of disputes and, if adapted to the specific expectations and needs of (enterprise) users of blockchains and smart contracts, may play a central role in a blockchain and smart contract environment. blockchain technology, smart contracts, distributed ledger technology, decentralization, disintermediation, oracles, automation, artificial intelligence, cryptocurrencies, NFTs, Kleros, digital dispute resolution