Smart Contracts as an Innovative Mechanism for Arbitration in the Blockchain Environment

Abstract

The study aims to examine dispute resolution using blockchain arbitration based on artificial intelligence and smart contracts to determine the terms, conditions, and procedures related to the dispute. When a dispute arises between the parties, the details of the dispute are recorded on the blockchain. Under smart contracts, the parties involved in the arbitration and the rules governing the proceedings can be specified. The advantage of blockchain arbitration is its transparency and the permanent and secure documentation of all details on the blockchain, making it difficult for parties to manipulate the record or falsify information. This helps to resolve disputes fairly through arbitration. The study concludes that, although blockchain arbitration is a promising technology, it is still in the development stages, and its success depends on the recognition of the process by the parties involved and the arbitrators. It is also important to consider local legislation and regulations that may affect the application of blockchain arbitration in various national and international laws.