As blockchain and
smart contracts transform global commerce, international commercial arbitration
faces challenges in adapting to this new landscape. This article explores the
compatibility between these technologies and arbitration, analyzing the
effectiveness of arbitration in resolving disputes arising from or related to
smart contracts and blockchain— so-called “smart” disputes.
This study explains
the fundamentals of blockchain and smart contracts. It then examines the
limitations and potential of traditional arbitration in resolving disputes
connected to these technologies. While arbitration offers strong procedural
safeguards, such as due process and global enforceability, it may be
inefficient for smaller disputes that demand more speed and lower costs.
In this framework,
on-chain methods emerge as agile alternatives, sometimes integrated directly
into the smart contracts themselves. These methods may include oracles and
other digital solutions that allow disputes to be resolved more economically
and dynamically, keeping pace with blockchain transactions.
The article concludes
that the most effective approach combines traditional arbitration and on-chain
methods, applying each according to the nature and scale of the conflict. This
integration seeks to ensure security, efficiency, and responsiveness to the
demands of the digital environment.