The implementation of smart contracts in business is expected to speed up transactions and increase transparency and security. But is the current legal and regulatory framework appropriate for smart contract disputes? We believe that in order for the technology to deliver on its promises and for smart contract adoption to achieve a truly global scale, it must be accompanied by an evolution of dispute resolution services.
Two biggest legal challenges of smart contracts lie in enforceability and jurisdiction. How will a decentralized system arrive at a consensus regarding disputes among stakeholders? And how will disputes involving smart contracts for international transactions that span multiple geographies be resolved? Additionally, other problems pertaining to smart contracts may arise, such as who is responsible for coding errors or system malfunctions? Furthermore, these new forms of contractual relations may require new models of dispute resolution. This is where smart arbitration could step in to replace traditional judicial dispute resolution proceedings, which are typically lengthy and often followed by delayed execution.
SmartArb (International Smart Mediation and Arbitration Institute) provides alternative dispute resolution (ADR) services for international business disputes in smart contracts. SmartArb mediation and arbitration clause in code form can be added to any smart contract to ensure the legal enforceability of the contract and to make sure that disputes will be resolved quickly and fairly. SmartArb encompasses a network of independent certified experts in international mediation and arbitration and provides a tiered system of fair, efficient, and reliable dispute resolution services for businesses worldwide.