Peer-to-peer marketplaces are forcing change on the systems we use for dispute resolution. Algorithmic dispute resolution, software-guided settlement negotiation, and even full-service stepped mediation to arbitration online dispute resolution (ODR) projects all existed in 2002–2003. Yet despite the promise of lower costs, faster speed, and jurisdictional autonomy, most of those projects have long been abandoned. They simply didn’t catch on. Now, with the invention of bitcoin, open blockchains, and smart contracts, there’s a renewed interest in these services.

Why now? The resurgence is deeply connected with the rise of the peer-to-peer (P2P) economy. As we stop relying on middlemen for trust, as we move to genuine P2P models, we need innovative, independent ways to resolve disputes. Consider eBay, the first mainstream model of a peer-to-peer(ish) sales platform. While buyers may look at a seller’s feedback rating, they often choose to complete the transaction because of their trust in eBay. Buyers trust in eBay’s dispute-resolution services and money-back guarantee. eBay spends money on developing and subsidizing dispute-resolution services and money-back guarantees because it’s a good business decision. But with proprietary or subsidized custom systems, the repeat players dictate the terms; terms and services can be changed at any time for any reason. This environment leaves little incentive to use robust, multipurpose, organizationally independent dispute-resolution solutions.

But what happens when we are actually dealing directly with one another? What happens in a system, such as OpenBazaar, where transactions are truly peer-to-peer? In systems where there is no third party with a vested interest? Where there are no corporate subsidies for dispute resolution services? Without a plan, without an alternative, injustice happens. Court happens. Worse yet, local court in an unknown jurisdiction with ambiguous laws and corrupt officials happens. These undesirable outcomes force the evolution of alternative dispute resolution solutions.

Bitcoin is not just impacting industries in finance. By enabling real-time, P2P global payments, bitcoin is a catalyst for the evolution of alternative legal processes. OpenBazaar is currently experimenting with an optional moderator-based dispute-resolution model where parties can pick their own judge. Innovations like algorithmic dispute resolution and software-guided settlement negotiation now have marketplaces that need them, with users savvy enough to want them. With smart contracts, these ideas can be upgraded, automated, and implemented in ways that provide additional certainty. We can even foster the development of new models, like AI, mediation DAO, and global crowd-juries.

The same issues exist today that existed in 2002–2003. Traditional court processes are still expensive, time-consuming, and exhausting for most people. Courts are still jurisdictionally unable to cope with the reality of a globally connected society. Justice is still often reserved for those with privilege, power, and money. Now it is possible to change those dynamics, at least for commercial transactions, as we develop private ODR systems to serve the unique needs of bitcoin, open blockchains, smart contracts, and the P2P economy overall. While we could recreate the same inefficiencies with a blockchain, let’s not do that. Let’s question everything. Let’s build to provide access to cost-effective, efficient, just processes.

Dispute resolution is changing, thanks in part to the growth of peer-to-peer marketplaces. Without a central actor to handle disputes, we need decentralized dispute resolution. Therein lies an opportunity to use bitcoin, blockchain and smart-contract technology to directly improve dispute resolution. The same technologies that disrupt traditional finance carry the spark to reinvent, modernize and improve access to justice and law.