Navigating The Uncharted Waters Of Smart Contract Disputes: The Dawn Of Blockchain Arbitration

Abstract

The execution and enforcement of contractual agreements have been completely transformed by smart contracts, which are enabled by blockchain technology. But as smart contracts become more widely used, the requirement for a strong dispute resolution process grows. Conventional dispute resolution procedures can include jurisdictional complexity, high prices, and inefficiencies. With its intrinsic qualities of decentralisation, immutability, and transparency, blockchain technology presents a viable substitute for settling disputes resulting from smart contract disagreements. This paper delved into the concept of resolving smart contract disputes through blockchain arbitration, exploring the scope of blockchain and smart contracts defining what smart contract and blockchain is. The paper further delved into the legal recognition of smart contracts with a comparative analysis of some countries-the UK, USA, Nigeria, and Canada. The paper assessed the dispute resolution mechanism in smart contracts by looking at the necessity of blockchain arbitration, the requirement for an arbitration clause, the pros and cons of blockchain arbitration and the challenges of enforcing blockchain arbitration awards. The paper concluded that a smart contract software system possesses the potential to extend the efficiency of business transactions significantly and that the efficiency of business lies in a very speedy dispute resolution mechanism which may be well obtained by resorting to a smart contract dispute redressal mechanism.