Parties to a blockchain transaction may have several ways to resolve disputes that arise from partial or failed transactions. When the transaction is under a smart contract, the parties can look to the contract for terms that may include a self-executing dispute resolution provision. In addition, arbitration is a frequent option and is often included in blockchain environments or contracts, where a neutral third-party arbitrator resolves the dispute outside of the court system. As an option to help the parties agree, mediation may resolve the dispute. Some blockchain environments have customer care or dispute resolution departments that follow through on failed transactions.

When other methods fail, disputes may be returned to a “traditional” court, especially if the dispute has either regulatory issues or involves fraud. For larger or more complex transactions, escrow services may hold assets based on the contract provisions. If there are disputes, the escrow service issues a ruling based on the terms. Finally, some blockchain platforms are developing on-chain dispute resolution protocols using decentralized forms of arbitration which have jurors that review the dispute and vote on resolution. The results of the voting may be recorded directly in the blockchain. All these various types of options can be suited to different dispute scenarios, depending on the transaction type and the blockchain environment.