Crypto Transaction Dispute Resolution

54 Pages Posted: 27 Jun 2017  

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Craig Calcaterra

Department of Mathematics, Metropolitan State University

Date Written: June 26, 2017

Abstract

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 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.

Keywords: Blockchain, Distributed Ledger Technology, Artificial Intelligence, Innovation, Entrepreneur, Start-up, Big Data, Smart Contract, Jurisdiction, Governance, Ties Network, Aragon, OpenBazaar, Ethereum, Platform, Ecosystem, Dispute Resolution, Arbitration

JEL Classification: K20, K23, K32, L43, L5, O31, O32

Suggested Citation

Kaal , Wulf A. and Calcaterra, Craig, Crypto Transaction Dispute Resolution (June 26, 2017). Available at SSRN: https://ssrn.com/abstract=2992962

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

Craig Calcaterra

Department of Mathematics, Metropolitan State University ( email )

700 East Seventh Street
St. Paul, MN 55106
United States

Paper statistics

Downloads
280
Rank
90,740
Abstract Views
1,166