Chinese Judges To Apply Blockchain For Resolving Legal Disputes
The local arbitration body in the Chinese city of Nanjing launched an online system to be used for resolving legal arguments. The network operates on the blockchain that stores the data of the court proceedings.
The Nanjing Arbitration Committee announced on the official website testing of the new network. The report says that the data put into the system will be distributed among the participating nodes, which are financial institutions, witnesses database, and other judicial bodies.
The parties will conclude a smart contract on the blockchain, prior to studying evidence and materials of the case. The decentralized network is highly protected from hacking, the report says. Using blockchain will speed up the issuance of court rulings up to a maximum of 30 days. The Committee also hopes that the new system will reduce the cost of holding a legal dispute.
Arbitration committees have existed in China since 1995 and are empowered in economical, business, finance and real estate issues. The Nanjing Committee is not the 1st to apply blockchain in resolving a case. Earlier this year, Guangzhou arbitration used the technology in a trial process to store loan data. In case of avoiding debt payments, the committee can automatically issue a ruling, seen by all nodes on the network.
Previously, the Supreme Court of China allowed the Internet courts to use data on blockchain in rendering verdicts. Thus, the state’s main judicial body recognized blockchain as a legitimate information storage.