Why is blockchain-based Arbitration the only future for dispute resolution?
Let’s face it: we are all moving the e-universe is some way. There is no denying that the digital world transforms faster than the analogue one. And for one reason or another, disputes arising from e-commerce are seldom taken into the conventional public courts. There are indeed strong reasons why courts will not deal with the challenges of resolving disputes with new technology, the reasons why will be examined in this article.
Why do conventional courts fail when resolving e-related disputes?
The more transactions are made online the more there is a need for specialized dispute resolution bodies able to work with the cases arising out of this new and non-conventional type of relationship. An answer to the question of whether it is rational to establish some new forms of resolving disputes is needed due to the following reasons:
· Some technologies appear and die out faster than required laws can be passed. Consequently, it is pointless to address a body to resolve a dispute on the matter there is no relevant legislation on.
· Conventional judicial system with courts that already bogged down cannot satisfy the needs of a rapidly developing technology. Imagine the case where you lay down a smart contract with your overseas counterpart, which completely substitutes a traditional escrow agent. Quite naturally, a dispute may arise. Traditional courts will be struggling to define the nature of your transaction since its limited only to the definition of escrow as stipulated by law. Let’s face it: reality may go further than its legal reflection.
Ok, there is a problem. But what is the solution?
More efficient conflict management approaches are to be developed. Traditionally arbitration has been considered the most efficient way to tackle with business-related issues, but its capacity may prove insufficient when it comes to prompt and cost-efficient resolution for average transactions. That is where blockchain should come into play.
The potential usages of blockchain technology can reach further than merely a currency, as it can give momentum to the development of completely new approaches to dispute resolution. For instance, smart contracts are able to ensure the unprecedented level of decentralization, operating autonomously without the need for any intermediary. The combination of two, blockchain based dispute resolution and smart contracts, has the potential to bring the quality and enforceability of dispute resolution to a new level. Good news is that this finds its wide implementation in real products, which plan to exploit the full potential of Blockchain. Among various applications of the kind, special attention should be paid to Confideal.
Confideal offers an integrated environment for creating legally binding, secure and encrypted smart contracts that will be automatically executed at the defined point of time. The platform offers a wide range of tools for drafting and managing Ethereum smart contracts without any programming skills or legal requirements. Owing to the built-in arbitration module, users may deal with any disputable issues with no need to engage any intermediaries or reveal personal information.
It is like traditional litigation but without any procedural barriers, where you may file a lawsuit, choose your judge and manage you proceeding as simply as pressing a button on your computer.
The time has come for the online community to create new ways of dealing with problems. Dispute resolution powered by blockchain is not an option but an imperative, since in the realities of life it is the only means of setting the screen for blockchain solutions to gain wide recognition and acceptance. It’s clear that at the early stages of mass implementation of such solutions, especially smart contracts certain issues may arise, automated, trustworthy and cost efficient system of dispute resolution will be indispensable to preserve consumer’s trust in such applications.
Connect with us!
We encourage you to stay in touch with us to receive updates on our project through the following channels: