Arbitration In The Era Of Smart Contracts

Blockchain is a notable emerging technology to watch in 2019.¹ In this article, we will walk you through the basics of blockchain technology and smart contracts, explain why arbitration is beneficial in smart contract disputes, and explore the challenges that may arise in an arbitration procedure.

Blockchain Technology in a Nutshell

Blockchain is a distributed ledger technology, an open source-based innovation that intends to change the way how transactions are performed. It is a decentralized database system. Once a new block is entered into the system, all users add that block to their current blocks and thus a chain of blocks creates a database. Each block is chained to the previous block and is recorded across a peer-to-peer network by using a cryptographic trust and assurance mechanism. Currently, a well-known example of a public blockchain is Bitcoin in which everyone is free to create a wallet, become a miner, and perform transactions.² However, Bitcoin is