International Conference on Law, Governance and Social Transformation
| Volume 1, Issue 1 (2025)
| Pages 44-48
THE DIGITAL ARBITRAL ORDER: SYNTHESIZING DECENTRALIZED JUSTICE AND TRADITIONAL ADR IN THE ERA OF SMART CONTRACTS
Abstract
The rapid proliferation of smart contracts has catalyzed a shift from traditional legal enforcement to automated, "code-based" execution. However, the inherent limitations of code—including logic vulnerabilities, oracle failures, and the inability to account for "subjective" contractual intent—necessitate a specialized framework for dispute resolution. This paper examines the emergence of decentralized arbitration platforms, specifically Kleros and UMA, as a bridge between blockchain automation and legal certainty. By analyzing recent developments such as the UKJT Digital Dispute Resolution Rules and the judicial recognition of blockchain awards in Mexico, this study argues that the future of arbitration lies in a tiered, hybrid ecosystem. In this model, high-velocity digital disputes are resolved via decentralized crowdsourced jurors, while complex, high-stakes cases transition into modified traditional frameworks (e.g., SIAC 2025). The findings suggest that for blockchain-based justice to achieve global enforceability under the New York Convention, a harmonization of "law as code" and "law understanding code" is required.
Keywords
Smart Contracts
Decentralized Arbitration
Kleros
Blockchain Jurisprudence
ADR
LegalTech
Lex Cryptographia
References
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Published
October 26, 2025
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