Document Type : Original Article
Author
PhD at Private Law, Shahid Beheshti University
Abstract
Today, using blockchain technology is increasing, so that various economic and commercial activities are carried out through smart contracts. Although self-performance and independence from third parties involvement are the principal features of these contracts, but contractual dispute is inevitable. The necessity of smart contracts' arisen disputes settlement, leads to blockchain based arbitration platforms emergence. These platforms operational mechanisms and their disputes resolution procedures and internal processes including arbitrators' appointment, making award, arbitration fees and etc. indicate significant differences with conventional arbitration. Regardless of these platforms actual nature and their awards self-performance allegation, serious legal challenges exist towards blockchain based on-chain arbitration. On the other hand, smart contracts dispute resolution through off-chain process or referring some parts of these disputes to conventional arbitration like awards performance entail challenges stemmed from smart contracts inherent characteristics. It seems that blockchain based arbitration is in the beginning of its development path, therefore adopting a hybrid solution of both above mentioned mechanisms beside approving required rules and regulations governing this contracts disputes may lead to resolve some of the legal challenges and more efficient arbitration in this decentralized industry.
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