Blockchain and Arbitration: Development and Challenges of Transnational Decentralised Disputes

A number of disputes involving decentralised relationships are caused by the impact of blockchain technology on various domains of human activity. Despite the fact that some disputes are resolved before municipal courts, the decentralised and transnational character of the blockchain makes arbitration a viable option for resolving disputes. In fact, blockchain-related arbitration proceedings are increasing. This paper examines the primary challenges posed to arbitration by disputes arising from relationships involving blockchain technology. Two distinct scenarios are considered: first, the most common, in which rather traditional relationships in the physical world are partially developed on the blockchain; and second, a more futuristic scenario in which the entire relationship occurs in a decentralised manner on the blockchain. The paper concludes with an examination of potential future scenarios and suggestions for the practise of legal scholars and counsels.