Abstract

The proliferation of crypto asset trading and blockchain-based transactions has intensified the complexity of dispute resolution, challenging the adequacy of traditional legal mechanisms. This article undertakes a comparative analysis of dispute resolution pathways in the crypto sphere, including national court litigation, alternative dispute resolution (ADR), platform-integrated online dispute resolution (ODR), and decentralized mechanisms such as Kleros. It highlights the shortcomings of litigation in addressing cross-border, pseudonymous disputes and evaluates arbitration and mediation for their relative advantages in speed, cost, and enforceability. The study further examines exchange-embedded ODR protocols and decentralized models that employ token incentives and crowdsourced jurors, assessing their legitimacy, transparency, and alignment with blockchain’s decentralized ethos. By providing a critical framework for comparing these mechanisms, the paper underscores the need for hybrid approaches that reconcile legal certainty with technological innovation in the evolving digital justice landscape.

This paper will be part of the TDM Special Issue on "Cryptocurrencies and Other Digital Assets in Arbitration". More information here www.transnational-dispute-management.com/news.asp?key=2080