The Nanjing Arbitration Commision is testing an online arbitration platform that is built on the blockchain technology. The blockchain network will help to deposit and store data in legal disputes.
According to the Nanjing govt website, “The platform makes deep use of blockchain technology and coexists with depository institutions, financial institutions, and arbitration institutions to deposit electronic data, real-time evidence preservation, electronic delivery, online trial and ruling.”
The committee has set up a ‘special network arbitration rule’ to establish a time limit for the trial period of the blockchain infused online arbitration platform. The trial period will be closed within 30 days of the start date. The announcement also said that the time limit for the testing phase was lower than the testing period for ordinary offline cases. The committee believes that a shortened time period will reduce the arbitration costs of the parties of the parties involved.
The committee is of the opinion that internet arbitration has refined the dispute resolution mechanism. The platform aims to enhance the business environment and create adequate dispute resolution methods for internet companies with a special focus on the financial industry.
This blockchain network trial phase was introduced after a recent declaration from China’s Supreme Court which mentioned that the evidence stored and authenticated by a blockchain network will be considered legally valid in online ruling procedures in all the internet courts of the country.
China’s regional arbitration committees were founded in 1995 after an Arbitration Law was passed. They could function as non-profit organizations that offer services in mediation, arbitration and dispute resolution mechanisms as an alternative to litigation.
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