On the effectiveness of digital dispute resolution through arbitration in England and Wales

The intensive growth of the digital economy has created the prerequisites for the emergence of a new mechanism of communication through the barriers of time and borders, which has affected all areas of society, including the area of dispute resolution. The emergence of completely new objects of civil rights in the metaverse requires the legislator to develop a legal basis for their functioning. The need to create special mechanisms for resolving so-called digital disputes has been overdue for a long time, and their legal nature can be completely different, both related to the active integration of information and communication technology, and not arising in the field of finance, trade, intellectual property. It is quite obvious that the main features of such social relations are that their occurrence does not depend on time and boundaries. Thus, the way to resolve digital disputes should correspond to these specific features.

Foreign experience in resolving digital disputes indicates, that there is no reality in which they could be avoided. Even a well-created smart contract on the blockchain does not guarantee the absence of controversial situations. Here the problem arises of choosing an adequate way to resolve such disputes, which would meet the necessary conditions, namely, binding and enforceability, and most importantly, correspond to specific features.

The global community in the field of digital dispute resolution has chosen arbitration as the basis as the most common, flexible, independent and fast way to resolve disputes. The inclusion of an arbitration clause in smart contracts and the adoption of various rules for resolving digital disputes has become widespread. However even here there are legal conflicts and gaps in the regulation of digital rights, which requires the development of a single unified approach and its implementation into national legislation. In addition, the internal regulation of the dispute resolution procedure in the blockchain also creates a number of unresolved issues.

One of the most developed legal systems in the field of digital dispute resolution is traditionally England and Wales. Over the past few years, a number of by-laws have been adopted that have had a significant impact on the development of this area, as well as the reform of arbitration legislation have created all the prerequisites for creating the most favorable conditions for the parties to a digital dispute to submit the dispute to English arbitration and in accordance with the law of England and Wales.