A detailed study report on how an alternate dispute resolution system can help mass adoption of Blockchain and Crypto had been published recently.
It was informed that the report was compiled by Stephanie Hurder who is a veteran columnist at CoinDesk. Stephanie had also been an economist at a world-renowned economic advisory called Prysm Group. In this report, she discussed how an alternate dispute resolution system can amicably resolve disputed transactions of Blockchain technology. She also highlighted in this report how ADR can ensure the mass-adoption of Blockchain.
The report was co-authored by Latham & Watkins along with World Economic Forum.
In the report, Stephanie argued that the subject of dispute resolution had been ignored in the Blockchain industry. She said that focus had always been drawn towards crypto governance and its infrastructure. But nobody addresses the issue of dispute resolution which is as important as governance and infrastructure.
In her report, she pointed out three main types of disputes which arise in transactions done using Blockchain technology. The first type of dispute she pointed out was a dispute which is ultimately decided by the operator of the network. The second dispute she told was relating to industries, which are ultimately decided by industry participants. The third type of dispute she explained related to the institution of litigation before a court of law.
She explained that the current judicial system with regard to the judiciary is flawed and lacks the required knowledge and expertise. The best way of dealing with crypto disputes arising out of Blockchain is through an alternate dispute resolution mechanism, she added. She said that in out of court settlement, the parties to the dispute can choose experts of their choice. These experts could be from the crypto industry, analysts, and crypto experts.
She also explained that crypto had been adopted globally now and the adoption will only increase with the passage of time. Resultantly, the contractual defaults would too increase significantly over time. If the parties to the contracts can resolve issues amicably through experts, this would ensure the process of natural justice. This will not only save time but will also save extra costs which both parties had to bear in litigation.
The report was concluded by Stephanie on the point that over time contractual complexities will only increase. However, the disputed Blockchain transactions can be settled amicably without going to court and instituting litigation.