Nanjing Arbitration Committee Of China Incorporates Blockchain Online Ruling System
An arbitration body in the Chinese city of Nanjing, which is aptly named Nanjing Arbitration Committee, has propelled an online ruling system that has a built-in blockchain network for depositing and storing data in legal disputes.
The online platform is now live in a testing phase. Data uploaded to the system will be stored in a distributed fashion among participating nodes, such as evidence deposition platforms, financial institutions, and other arbitration committees.
China’s regional arbitration committees were established in 1995 with the introduction of the Arbitration Law, and work as independent non-profit organizations that offer services in arbitration, mediation, and other dispute resolution mechanisms as an alternative to litigation.
The recent announcement by Nanjing Committee says: “Makes extensive use of blockchain technology, and coexists with depository institutions, financial institutions, and arbitration institutions to deposit electronic data [and enable] real-time evidence preservation, electronic delivery, online trials, and ruling.”
The committee says that it has formed a special network arbitration rule within the system that will set a determinate time limit of 30-days for the resolution of online arbitration cases. This is shorter than existing online trial periods and significantly lower than the standard for offline cases. The new system is also presented as a means of reducing arbitration costs for all parties involved, with the new system overall expected to provide a more convenient, cost- and time-efficient dispute resolution method for the majority of Internet companies, especially in the financial field.
Distinctly, this follows a recent announcement from China's Supreme Court, showing it acknowledged evidence stored and authenticated by a blockchain network as legally valid in online ruling procedures across internet courts in the country.
The Nanjing Arbitration Committee is not the first entity to have utilized blockchain in a ruling procedure. The Guangzhou Arbitration Committee has worked with Tencent-owned WeBank – one of the first online-only banks in China, to move loan data to a blockchain system as part of a trial.