A Critique on Current Dispute Resolution Methods of Smart Contract Disputes

Öz

The unique decentralized nature of blockchain technologies leads investors to international arbitration. However, lingering issues necessitates further analysis regarding how arbitration should be conducted on a smart contract-based dispute. To this end, this study proposes that traditional arbitration rules should adjust to be suitable to resolve disputes arising from smart contract transactions. Current smart contract dispute resolution methods should also evolve by either implementation of arbitration rules in the smart contracts on the blockchain, or development of a blockchain based arbitration institution specialized in arbitration of smart contract disputes. In the alternative, a completely decentralized arbitration system should be considered for the resolution of decentralized markets dealing with smart contracts on blockchain platforms.

Anahtar Kelimeler

• Smart contracts,Blockchain,Bitcoin,Crypto currency,Dispute resolution,International arbitration

AKILLI SÖZLEŞMELERDEN DOĞAN ANLAŞMAZLIKLARDA KULLANILAN UYUŞMAZLIK ÇÖZÜM YÖNTEMLERİ ÜZERİNE BİR ELEŞTİRİ

Öz

Blockchain teknolojilerinin kendine özgü merkezi olmayan doğası, yatırımcıları uluslararası tahkime yönlendirmektedir. Ancak bu durum akıllı sözleşmeden doğan anlaşmazlık üzerine tahkimin nasıl yürütüleceğine dair daha fazla analiz yapılmasını gerektirmektedir. İşbu makale, geleneksel tahkim kurallarının, akıllı sözleşmelere dayalı ticari işlemlerden doğan uyuşmazlıkları çözmek için uygun hale getirilmesini önermektedir. Bu amaçla, mevcut akıllı söleşmelere dayalı ticari işlemlerden doğan uyuşmazlık çözüm yöntemleri, ya akıllı sözleşmelere tahkim kurallarının ekleyerek ya da akıllı sözleşme uyuşmazlıklarının tahkimi konusunda uzmanlaşmış bir tahkim kurumu oluşturularak geliştirilmelidir. Alternatif olarak, blockchain platformlarında akıllı sözleşmelerle ticari islem yapan piyasalar için yine aynı şekilde merkezi olmayan bir tahkim sistemi düşünülmelidir.

Anahtar Kelimeler

• Akıllı sözleşmeler,Blockchain,Bitcoin,Kripto para,Uyuşmazlık çözümü,Uluslararası tahkim

Kaynakça

1. Andrew, Paul. Who is Nick Szabo?, Coin Central (15.04.2019), Retrieved from https://coincentral.com/who-is-nick-szabo/.
2. Blackaby, Nigel; Partasides, Constantine; Redfern, Alan; and Hunter, Martin (2015). Redfern and Hunter on Int’l Arbitration 71 (Oxford Univ. Press, 6th ed.).
3. Brummer, Chris; Yadav, Yesha. (2019). Fintech and the Innovation Trilemma, 107 Geo. L.J. 235, 258.
4. Garrie, Daniel B. Mediators Need to Become ‘Bilingual’ to Resolve Smart Contracts (04.03,2019), Retrieved from https://www.law.com/legaltechnews/2018/12/05/mediators-need-to-become-bilingual-to-resolve-smart-contracts/?slreturn=20190226202407.
5. Givari, Dena. How Does Arbitration Intersect with the Blockchain Technology that underlies Cryptocurrencies?. (20.02.2019), Retrieved from Kluwer Arbitration Blog http://arbitrationblog.kluwerarbitration.com/2018/05/05/scheduled-blockchain-arbitration-april-17-2018/.
6. Haber, Stuart; Stornetta, (1991). Scott, How to Time Stamp a Digital Document, Journal of Cryptology 99.
7. Interview with Jason Velez, Esq., 1LAW CEO and Platform Architect, Cross Campus (27.03.2019).
8. Interview with Professor Bhaskar Krishnamachari, Professor of Electrical Engineering-Systems and Computer Science, University of Southern California, School of Engineering (08.04.2019).

9. Solidity, Introduction to Smart Contract, (2018) Retrieved from https://solidity.readthedocs.io/en/v0.4.24/introduction-to-smart-contracts.html.
10. JAMS Launches Smart Contracts, Blockchain and Cryptocurrencies Practice, Retrieved from https://www.jamsadr.com/news/2018/jams-launches-smart-contracts-blockchain-and-cryptocurrencies-practice.
11. Jia, Haiying; and Adland, Roar. (2019) Second International Symposium on Foundations and Applications of Blockchain. Department of Business and Management Science and Center for Transportation and Logistics.
12. Levi, Stuart D.; Lipton, Alex B. An Introduction to Smart Contracts and Their Potential and Inherent Limitations, Harvard Law School Forum on Corporate Governance and Financial Regulation (12.04.2019), Retrieved from https://corpgov.law.harvard.edu/2018/05/26/an-introduction-to-smart-contracts-and-their-potential-and-inherent-limitations/.
13. Maynard, Simon; Chan, Elizabeth. Decrypting Cryptocurrencies: Why Borderless Currencies May Benefit from Borderless Dispute Resolution. Kluwer Arbitration Blog (17.02.2019), Retrieved from http://arbitrationblog.kluwerarbitration.com/2017/11/02/decrypting-cryptocurrencies-borderless-currencies-may-benefit-borderless-dispute-resolution/.
14. Miyagawa, Shigeyoshi; Morita, Yoji. (2009). Financial Crisis of Finland, Sweden, Norway and Japan, 19 KGU 45.
15. Moses, Margaret. (2017). The Principles and Practice of International Commercial Arbitration 20 (Cambridge University Press, 3rd ed.).
16. Rogers, James; Ibrahimov, Ayaz. Cryptocurrencies and Arbitration —A Match Made in Heaven?. (02.04.2019), Retrieved from https://www.nortonrosefulbright.com/en/knowledge/publications/cae35319/cryptocurrencies-and-arbitration-mdashbra-match-made-in-heaven.
17. Scott, Allen. Vitalik Buterin: I Quite Regret Adopting the Term ‘Smart Contracts’ for Ethereum, Bitcoinist. (10.04.2019), Retrieved from https://bitcoinist.com/vitalik-buterin-ethereum-regret-smart-contracts/.
18. Szabo, Nick. Smart Contracts: Building Blocks for Digital Markets. (11.04.2019), Retrieved from http://www.fon.hum.uva.nl/rob/Courses/InformationInSpeech/CDROM/Literature/LOTwinterschool2006/szabo.best.vwh.net/smart_contracts_2.html.
19. Terrien, Armand; Kerjean, Alexandra. Blockchain and Cryptocurrencies: The New Frontier of Investment Arbitration? (21.03.2019), Retrieved from http://arbitrationblog.kluwerarbitration.com/2018/10/18/blockchain-and-cryptocurrencies-the-new-frontier-of-investment-arbitration/.
20. United Nations, Convention on the Recognition and Enforcement of Foreign Arbitral Awards, (10.06.1958).
21. United Nations Commission on International Trade Law, UNCITRAL Model Law on International Commercial Arbitration 1985, (21.06.1985).
22. Werbach, Kevin; Cornell, Nicolas. Contracts Ex Machina, 67 Duke L.J. 313 (2017). Arbitrating Smart Contract Disputes (14.04.2019), Retrieved from https://www.nortonrosefulbright.com/en-us/knowledge/publications/ea958758/arbitrating-smart-contract-disputes.
23. Wheaton, William C.; Nechayev, Gleb. The 1998–2005 Housing ‘‘Bubble’’ and the Current ‘‘Correction’’: What’s Different This Time? (30.03.2019), Retrieved from https://economics.mit.edu/files/3780.
24. Williams, Austin. Escrow Smart Contract Specification in OpenBazaar, (09.04.2019), Retrieved from https://openbazaar.org/blog/Escrow-Smart-Contract-Specification-in-OpenBazaar/.