Self Enforcing Online Dispute Resolution: Lessons from Bitcoin
The enforcement of outcomes in online dispute resolution (ODR) is a delicate problem. Since disputes arising out of e commerce transactions are typically low in value, the traditional channels of coercive enforcement are often not a viable option. The article argues that the Bitcoin system can be used as a source of inspiration to devise new models of self enforcement. The article describes the legal framework of ODR and argues that the goal of self enforcement can be attained through the use of technology. It then describes the relevant features of the Bitcoin system, underlining its potential as a new forum for the expression of private autonomy. It then investigates the features of Bitcoin adjudication, before arguing that Bitcoin must be regarded as an original and self contained system of dispute resolution, whose characteristics can be used to theorise new models of self enforcement. Next, it compares four alternative models of self enforcement, two of which take Bitcoin adjudication as an example. Finally, it puts forth recommendations for all actors involved in the implementation of self enforcing ODR mechanisms and argues that different models should be left free to compete.