A Study on Implementation of Blockchain Arbitration in the E-Commerce Sector

The essence behind introduction of ADR methods is to provide a private and expeditious relief to the aggrieved party since Court proceedings can be lengthy and time consuming. Arbitration has proved to be an ADR method that closely resembles Judicial procedure yet acts as a flexible substitute. The problem arises when parties enter into physical contracts where enforceability of agreements between parties and commercial transactions takes a beating. This is where smart contracts and blockchain arbitrations are introduced. Smart contracts are digital contracts which have predetermined terms and conditions stored on blockchain technology and when those conditions are met, the contracts are automatically enforced. Blockchain arbitration deals with disputes relating to those contracts but does not limit itself to them alone. E-commerce is a field where smart contracts are extensively utilized. Circulation of goods through e-commerce has been the most prevalent form of commercial transaction in the current era. Due to the influx in the amount of companies preferring e-commerce transactions, the number of disputes arising in such transactions have also climbed up which the Courts cannot handle efficiently. The crux behind our paper is to give a brief idea about what smart contracts and blockchain arbitrations are, and identify the potential areas and methods in which blockchain arbitrations can be implemented in e-commerce transactions.