Three Potential Imminent Benefits of Blockchain for International Arbitration: Cybersecurity, Confidentiality & Efficiency
Young Arbitration Review, 2018
8 Pages Posted: 3 Jan 2019
Date Written: November 24, 2018
There have been a few headlines lately reporting how blockchain technology and smart contracts will add an astounding business value. For instance, McKinsey reports that blockchain-based smart contracts can save nearly $50 Billion in B2B transactions. Further, Accenture suggests that blockchain-based smart contracts can save the banking industry up to 70% in central financial reporting. Maybe, that’s why Gartner made a bold prediction that 25% of global organizations will use blockchain-based smart contracts by 2022. All of these headlines have one thing in common; they are not taking about cryptocurrency or public permissionless blockchains but they are all taking about only one type of blockchain; that is the private permissioned blockchain. This raises the question of whether the private permissioned blockchain has a viable use case in international arbitration. In other words, can such type of blockchain enhance international arbitration. This article tries to answer this question while elaborating the acute distinctions between the various types of the blockchain and their relevance for international arbitration, and their potential benefits to international arbitration, if any. In addition, this article tries to debunk the overwhelming number of myths and misperceptions concerning the use of blockchain technology and blockchain-based smart contracts.
Keywords: Blockchain, Cybersecurity, Confidentiality, Efficiency, International Arbitration
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