The resolution of B2B disputes in blockchain-based arbitration: a solution for improving the parties’ right of access to justice in the digital age?

Blockchain technology was first introduced at the end of the 2000s when Satoshi Nakomoto released his whitepaper on the Bitcoin cryptocurrency. The specificity of this technology is that it functions on a decentralised basis as there is no use of a trusted intermediary or central authority. Smart contracts are software codes including the terms and conditions that run on a network leading to a partial or full automated self-execution and self-enforcement of the transaction. In essence, a smart contract is a software programme that is stored on the blockchain. Smart contracts can be used in supply chain management, trade finance and energy trade. In the context of these different transactions, it would be relevant to include an arbitration clause in the smart contract to prompt the parties to resolve their differences with regards to the performance of the contract. This type of dispute resolution has received widespread attention for the resolution of specific low-value claims. In light of these technological innovations, this chapter focuses on an examination of the extent to which the blockchain-based arbitration procedure guarantees the parties’ right of access to justice in B2B disputes as an alternative to traditional face-to-face arbitration. This chapter effectuates in the first instance an explanation of blockchain and smart contract technology and the role that arbitration plays in this context. Then the chapter explores the reasons behind the adoption of blockchain-based arbitration, and whether this ameliorates the parties’ possibility of access to justice in contrast to traditional arbitration. The chapter finally analyses in the third section the extent that the parties’ rights are protected by the current international and national legal framework for providing adequate access to justice to resolve their disputes.