Crypto Transaction Dispute Resolution
Wulf A. Kaal, Craig Calcaterra · 2017
The rapid evolution of anonymous, autonomous, and distributed blockchain-based smart contracting creates friction and enforceability issues with existing legal and jurisdictional principles, calling the future governance of blockchain technology into question. The effective governance of blockchain technology and smart contracting is essential to ensuring its continuing evolution. Based on the mathematical principles underlying the disposition of blockchains, we propose and evaluate an alternative approach to the existing legal exercise of jurisdiction that is inherent in blockchain technology itself. We call this distributed jurisdiction. This contribution is not merely theoretical. Several Ethereum smart contracting crypto startups demonstrate that anonymity can be perpetuated in blockchain technology, despite blockchains’ eternal storage of information and its growing size working against anonymity. Startup applications highlight that the technology itself offers means of internal controls that help ensure effective governance in the continuing evolution of the technology. Based on the concept of distributed jurisdiction, we suggest an open source platform ecosystem for smart contracting dispute resolution that allows users to opt into a conflict resolution mechanism that enables more nuanced crypto solutions and produces greater certainty in the process. Anonymized arbiter expertise via * Associate Professor, University of St. Thomas School of Law (Minneapolis, USA). The authors are grateful for outstanding support from research librarian Megan McNevin and Michael Robak. ** Associate Professor, Department of Mathematics, Metropolitan State University (St. Paul, USA). 1 Electronic copy available at: https://ssrn.com/abstract=2992962 2017 CRYPTO TRANSACTION DISPUTE RESOLUTION rankings in combination with a representation option for crypto disputes provide a resolution mechanism for legacy businesses that desire to participate in the growth of crypto business opportunities, hope to avoid legacy system intermediation and the associated transaction costs, but require legal legacy system assurances and crypto dispute resolution equivalence. Key Words: Blockchain, Distributed Ledger Technology, Artificial Intelligence, Machine Learning, Data Science, Data Scientists, Meta Models, Innovation, Entrepreneur, Start-up, Big Data, Smart Contract, Jurisdiction, Governance, Ties Network, Aragon, OpenBazaar, Ethereum, Platform, Ecosystem JEL Categories: K20, K23, K32, L43, L5, O31, O32 2 Electronic copy available at: https://ssrn.com/abstract=2992962 2017 CRYPTO TRANSACTION DISPUTE RESOLUTION
Cite: Wulf A. Kaal, Craig Calcaterra, Crypto Transaction Dispute Resolution (2017). SSRN: https://ssrn.com/abstract=2992962. https://doi.org/10.2139/SSRN.2992962
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