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73 Bus. Law. 109 (2017-2018)
Crypto Transaction Dispute Resolution

handle is hein.journals/busl73 and id is 121 raw text is: Crypto Transaction Dispute Resolution By Wulf A. Kaal* and Craig Calcaterra** The rapid evolution of anonymous, autonomous, and distributed blockchain-based smart contracting creates friction and cnforce bility issues with existing legal andjurisdictional prin- ciples, calling thefuture govcrnance of blockchain technology into question. The cffcctve gov- ernance 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 jurisdicton that is inherent in blockchain technology itself. Vc call this distributed jurisdiction. Thls contribution is not merely theoretical. Several Ethercum smart contracting crypto start-ups have demonstrated that anonymity can be perpetuated in blockchain technology, despite blockchains' eternal storage of information and their growing size working against anonymity. Start-up applications highlight that the technology itself offers means of internal controls that help ensure cffcctive 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 in to 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 busi- nesses that desire to participate in the growth of crypto business opportunities and hope to avoid legacy system intermediation and the associated transaction costs but require legal legacy system assurances and crypto dispute resolution equivalence. Contents I. In tro d u c tio n ....................................................................................... 1 1 0 II. B lockchain T ech n ology ...................................................................... 114 1. Mathematical Principles and Foundations ..................................... 118 a) Public-Key C ryptography ........................................................ 119 b) Cryptographic Hash Functions ............................................... 121 c) Transactions and Block Creation ............................................ 122 d) Ethereum - Proof- of- Stake ....................................................... 123 e) T echn ical Su m m ary ................................................................. 124 Associate Professor, University of St. Thomas School of Law (Minneapolis, MN, United States). The authors are grateful for outstanding support from research librarians Megan McNevin and Mi- chael Robak. ** Associate Professor, Department of Mathematics, Metropolitan State University (St. Paul, MN, United States).

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