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2019 J. Disp. Resol. 103 (2019)
Online Dispute Resolution for Smart Contracts

handle is hein.journals/jdisres2019 and id is 419 raw text is: Online Dispute Resolution for Smart Contracts By Amy J. Schmitz* and Colin Rule* Smart contracts built in the blockchain are quietly revolutionizing tradi- tional transactions despite their questionable status under current law. At the same time, disputes regarding smart contracts are inevitable, and par- ties will need means for dealing with smart contract issues. This Article tackles this challenge, and proposes that parties turn to online dispute res- olution (ODR) to efficiently and fairly resolve smart contract disputes. Furthermore, the Article acknowledges the benefits and challenges of cur- rent blockchain ODR start-ups, and proposes specific ideas for how de- signers could address those challenges and incorporate ODR to provide just resolutions that will not stymie efficiencies of smart contracts. None- theless, the Article also raises pivotal cautions and questions for ensuring the fairness and transparency of these solutions over the longer term. I. INTRODUCTION It is no secret that technology is disrupting many industries, including law.1 In fact, technology is revolutionizing the art of deal-making by leaps and bounds. Gone are the days when most deals were negotiated in person and sealed with a handshake.2 Instead, we now expect to make most purchases online through e- contracts, sealed with a click on the accept button.3 Even corporate leaders now use e-mails and texts to negotiate deals, which they eventually sign online through services like Docusign.4 Despite our current comfort with these new types of online contracts, smart contracts on the blockchain push the envelope even further into the digital age. Smart contracts are different from traditional or common e-contracts in that they are essentially computer code.5 Those with no coding background cannot easily interpret a smart contract in its rawest form. Instead, these contracts are spread across blockchain nodes distributed throughout the world.6 In other words, they are * Elwood L. Thomas Missouri Endowed Professor of Law at the University of Missouri School of Law. I thank Catherine Picht, Andrew Johnson, and Michael Castleman for their research assistance. * Vice-President, Online Dispute Resolution at Tyler Technologies. 1. See generally RICHARD SUSSKIND, TOMORROW'S LAWYERS: AN INTRODUCTION TO YOUR FUTURE (Oxford Univ. Press 2013). 2. AMY J. SCHMITZ & COLIN RULE, THE NEW HANDSHAKE: ONLINE DISPUTE RESOLUTION AND THE FUTURE OF CONSUMER PROTECTION, at ix (2017). 3. Id. 4. Companies Using Verisign, IDATALABS (2017), https://idatalabs.com/tech/products/verisign. 5. David Zaslowsky, What to Expect When Litigating Smart Contract Disputes, LAw360 (Apr. 4, 2018, 5:11 PM), https://www.law360.com/articles/1028009/what-to-expect-when-litigating-smart-con- tract-disputes. 6. Id.

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