Challenges of Blockchain-Based Arbitration with Emphasis on the Recognition and Enforcement of Arbitral Award; A Case Study on the Kleros Arbitration Mechanism

Articles in Press

Document Type : Research Paper

Authors

1 Department of Private and Islamic Law, Shiraz University, Shiraz, Iran

2 M.A. Student at International Commercial Law, Shiraz University

10.22099/jls.2026.55492.5471

Abstract

Smart contracts, as an emerging phenomenon in the field of contract law, are characterized by automatic execution and non-revocability. Nevertheless, disputes arising from such contracts remain a realistic possibility. In response, various platforms have been developed to resolve smart-contract disputes, and the procedures used in these systems have come to be known as "blockchain arbitration". However, the enforceability of arbitral awards issued through these platforms before national courts under New York Convention remains a matter of serious consideration. With the aim of analyzing these challenges, this article first defines smart contracts and their key features, then examines the dispute-resolution and arbitration mechanisms applicable to them. Finally, by referring to fundamental principles of arbitration - such as the independence and impartiality of arbitrators and the principle of equity - as well as the criteria set forth in the New York Convention, including the territorial requirement for an award, and the requirement that both the arbitration agreement and the award be in written form, the article identifies and explains the general challenges of blockchain arbitration and specific challenges involved in recognizing and enforcing arbitral awards rendered through this form of arbitration.

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Journal of Legal Studies

Articles in Press, Accepted Manuscript
Available Online from 18 May 2026

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