Crypto and NFT are still fairly new technologies, and as with any novel technology, disputes are bound to happen. Mediation is becoming an increasingly popular way to keep blockchain disputes out of court. It is a process in which an impartial third party, the mediator, helps disputing parties communicate with each other to try to reach an agreement. The mediator does not make decisions or tell the parties what to do, but rather, facilitates communication between the parties to help them reach their own agreement. Mediation is informal and confidential, and focuses on finding a solution that meets the needs of both parties.
What types of blockchain disputes can be resolved through mediation?
Examples of digital disputes that can be resolved through mediation include, but are not limited to:
- disputes that arise out of smart contracts;
- conflicts over crypto assets or currencies (Bitcoin, Ethereum, Litecoin, Ripple etc)
- disputes over transactions on the blockchain.
- disputes arising out of the purchase, sale and/or creation of Non-Fungible Tokens (NFT).
5 reasons to use mediation for resolving blockchain disputes:
Mediation can offer many benefits over traditional methods of dispute resolution, such as litigation or arbitration. Some of the benefits of using mediation to resolve blockchain disputes include:
- Mediation is often faster and cheaper than going to court.
- It is a confidential process: what is said during mediation cannot be used outside the process.
- The parties in mediation have more control over the outcome than they would if they went to court.
- Mediation is voluntary – both parties must be willing to participate in good faith and to openly share information and ideas.
- Mediation is flexible – will tailor the process to fit the needs of the dispute and the parties involved.
How does mediation work?
The first step in mediation is usually a joint session where each party has an opportunity to explain their side of the dispute. The mediator will then help the parties identify the issues that need to be addressed and brainstorm possible solutions. The parties will then break into separate rooms where the mediator will discuss these possible solutions further. Once an agreement is reached, it will be put into writing and signed by both parties.
Wandsworth Mediation Service is an established conflict resolution provider, with a strong track record of achieving settlement for commercial disputes, including conflicts over the use of blockchain technologies. Our accredited mediators have vast experience in untangling complicated issues, including successfully settling a conflict over Bitcoin that had been going on for 5 years. Please contact us for a free quote.