Blockchain “Arbitration” for NFT-Related Disputes

Abstract

In recent years, advancements in blockchain as well as virtual and augmented reality technologies have led to the emergence of digital environments, commonly referred to as the “metaverse”. These virtual worlds offer users unprecedented ways to interact and conduct business, such as the use of non-fungible tokens (“NFTs”) for transactions. Correspondingly, there has also been an increase in disputes that are unique to these contexts. This article assesses the suitability of various dispute resolution mechanism vis-à-vis such disputes, focusing in particular on decentralised justice platforms that purportedly provide the option of “blockchain arbitration”. What does blockchain arbitration entail? What are its advantages and disadvantages when compared to litigation or arbitration (in the more conventional sense)? And to what extent would decisions rendered pursuant to such processes be enforceable under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”)? This article discusses these questions and explores blockchain arbitration’s use case.

Keywords: arbitration, blockchain, disputes, enforceability, metaverse, non-fungible tokens