BLOCKCHAIN DISPUTE RESOLUTION – AFTER ‘VIRTUAL’, THE NEXT ‘NEW NORMAL’?
Blockchain, Ethereum, artificial intelligence (AI), smart contracts and cryptocurrencies are not ludicrous or dangerous concepts. We do not know yet if they will dominate our future, but we often ignore new technologies until they take over our lives. Traditionally, most of us are creatures of habit, and hesitate before we recognise game changers. History is full of examples: Nantucket Island was the whaling capital of the world and one of the wealthiest communities in America at the end of the 19th century. This hegemony was stopped dramatically by the rise of the petroleum industry. Video streaming and MP3s very quickly surpassed Blockbuster, cassette players and Walkmans. Smartphones revolutionised communications and mobile access to information. Blockchain may well be the next ‘cloud’ or Blu-ray, which are now completely mainstream. The blockchain community itself has matured recently, moving away from ‘get-rich-quick-schemes’ into more viable business-ready solutions. Blockchain technology has the potential to fundamentally disrupt business practices across many sectors around the world. 2020 may well be the year the technology finally flourishes – and the arbitration world needs to be ready.
What is blockchain and why is it a game changer for businesses and individuals alike?
Blockchain is a decentralised digital register that records the provenance of a digital asset. In non-technical language, it is a secured database, managed by its users, that allows digital information to be stored and exchanged in a highly secured way. In particular, blockchain allows users to exchange digital assets and to verify instantly digital information about the asset being exchanged and the participants of the transaction. Blockchain is highly secure not only because of the information encrypted, but also because it is spread in ‘blocks’ of data around multiple anonymous servers worldwide.
Oct-Dec 2020 issue
BVI International Arbitration Centre