Transformative impact of blockchain technology and smart contracts on dispute resolution: legal challenges and other implications.

Christie, David; Mante, Joseph; Mak, Charles Ho Wang

Abstract

This paper comprehensively analyses the potential of blockchain technology and smart contracts to revolutionise dispute resolution. As dispute resolution methods evolve, blockchain and smart contracts, which offer efficiency, transparency, and fairness, are becoming more critical. That is especially the case in mediation and construction adjudication, which are less traditionally formal and tend to be carried through much more quickly than other forms of dispute resolution. The opportunity of blockchain comes from its ability to demonstrate a tamper-proof, clear record, reducing risks of misunderstanding and bias. This facilitates the transfer and verification of evidence both in the carrying out of projects and during dispute resolution processes. Smart–digital contracts with terms coded indirectly- allow for automated contract enforcement. They execute automatically upon meeting specific conditions. This automation brings a new efficiency level, cutting the time and costs of conventional dispute resolution. Nonetheless, integrating blockchain and smart contracts in dispute resolution faces several challenges. The current limited understanding and acceptance of these technologies in the legal sector is an imminent issue. Legislative changes are necessary to provide a solid legal framework for these technologies in legal processes and to address potential inconsistencies of approach. Such reform requires strong cooperation among lawmakers, technologists, and legal experts to ensure implementation that adheres to legal and ethical norms and ensures that the technologies can be applied with confidence by the stakeholders within the process. This collective effort is crucial for seamlessly integrating blockchain and smart contracts into legal frameworks.

Citation

CHRISTIE, D., MANTE, J. and MAK, C.H.W. [2024]. Transformative impact of blockchain technology and smart contracts on dispute resolution: legal challenges and other implications. Kuwait International Law School journal [online], (accepted for forthcoming special issue): proceedings of the 10th Kuwait International Law School annual international academic conference (KILAW 2024): artificial intelligence: its applications, academic and practical legal implications, 1-2 May 2024, Kuwait City, Kuwait. To be made available from: https://journal.kilaw.edu.kw

• Presentation Conference Type: Conference Paper (published)
• Conference Name: 10th Kuwait International Law School annual international academic conference (KILAW 2024): artificial intelligence: its applications, academic and practical legal implications
• Acceptance Date: Apr 22, 2024
• Deposit Date: May 21, 2024
• Publicly Available Date: Sep 2, 2024
• Journal: Kuwait International Law School journal
• Electronic ISSN: 2410-2237
• Publisher: Kuwait International Law School
• Peer Reviewed: Peer Reviewed
• Keywords: Blockchain technology; Smart contracts; Dispute resolution methods; English law
• Public URL: https://rgu-repository.worktribe.com/output/2343788
• Publisher URL: https://journal.kilaw.edu.kw