The Future of ADR: Navigating Disputes in the Metaverse & Web3

As the world moves towards a digital age, the concept of Alternative Dispute Resolution (ADR) is becoming increasingly relevant. And when it comes to the "digital age" of ADR, we are moving beyond concepts of e-discovery to full-digital issues like the metaverse and web3. 

With the rising popularity of metaverse and web3, we will likely see significant changes to the way we handle and resolve disputes. 

In this blog post, we'll discuss the future of ADR in the metaverse and web3 (or Web 3.0), including the current state of ADR in the metaverse and thoughts on how we mediators and arbitrators can prepare for a future career in mediating disputes involving web3 and the metaverse.

Current State of ADR in the Metaverse

The metaverse is still in its early stages, but some companies are already implementing ADR solutions. 

For instance, Decentral Games, a decentralized gaming platform, has integrated a decentralized dispute resolution system where users can resolve disputes through a smart contract. The platform is powered by the Ethereum blockchain, which offers transparency and security to the dispute resolution process.

But even before we get to smart contracts, when thinking about the metaverse and ADR, picture a reality where law professionals no longer need to gather in person, but instead convene virtually (for example, ENGAGE VR's technology, such as a virtual hearing room, that combines visual and auditory senses with the exciting new dimension of tactile technology). 

Preparing for a Future Career in Mediating Disputes Involving Web3 and the Metaverse

But with the emergence of the Metaverse, so too comes a unique set of legal challenges. Disputes that take place within this virtual environment require fast resolution and impartiality in order to ensure trust from its users. Unfortunately, traditional forms dispute resolution are not equipped for such tasks due to their lack of adjusted rules and inability to enforce sanctions properly - making innovation key when it comes sorting out these digital disagreements. To successfully navigate through all things Metaverse-related, new methods must be established which better serve justice while also safeguarding safety for all sides involved. 

With no global jurisdiction or enforcement system in the metaverse, parties will find themselves needing to rely on creative traditional dispute resolution tactics. Parties can choose to work under a 'fair and equitable' principle instead of one specific national law that may not be well adapted for meta-environments. Furthermore, jurisdictions overseeing such disputes could use freezing orders and injunctions against digital assets as security measures to ensure compliance with any future decisions made concerning them. Additionally, monetary sanctions might also come into play if needed. 

Instead of taking disputes to the courts, exciting solutions have started appearing which could revolutionize dispute resolution. Kleros, Aragon and Jur are offering innovative services for arbitration including randomly selected decision-makers as well as an automated smart contract enforcing awards onchain - with the idea of eliminating the need for extra enforcement is needed after judgement. This could offer a secure and reliable option that eliminates delays often associated with traditional methods; however it's only available if assets have been deposited ahead into the underlying contract.

As the Metaverse expands, so does the potential for a variety of disputes- both traditional and new. Whether it be splitting assets through divorce proceedings or accusing platforms of selling personal data, there are an array of issues that will arise in this digital space. Not to mention previously unseen controversies such as usurpation within user owned metaverses -we can only imagine what challenges yet remain undiscovered. 

And then we will see the evolution of metaverse disputes involving different actors. No longer limited by real-world identities, these virtual realms will see platform operators and anonymised users alike engaged in a whole new era of conflict-resolution - including potential AI bots. 

Arbitration can provide an ideal solution to the complex challenge of settling intellectual property disputes in the Metaverse - a realm not yet recognized by many countries. Disputes concerning this new digital world would benefit from tailored arbitral rules, affording those involved greater autonomy and flexibility than traditional courts could afford. Plus, with jurisdiction being unclear across different jurisdictions, international arbitration offers certainty over which state's laws will apply when looking at virtual infringements like these.

Sounds like a lot to take in? The new wave of technology can be overwhelming...and we are just getting started. 

So what are some thoughts on how us mediators and arbitrators can prepare for ADR in the metaverse and web3? We've got some suggestions based on how we are approaching our own preparation:

1. Acquire Knowledge of the Underlying Technology: Mediators and arbitrators can familiarize themselves with the metaverse and how it works as well as other underlying technologies like blockchain and smart contract technology, digital assets and NFTs (Non-Fungible Tokens). This includes understanding the basics of how these technologies work, as well as their potential applications in the metaverse and web3.

2. Participate in Training Programs: Participating in training programs focused on the use of technology in dispute resolution can help mediators and arbitrators acquire hands-on experience in resolving disputes in the metaverse and web3. This can include courses in blockchain, smart contracts, and digital assets, as well as courses specifically designed for ADR professionals.

3. Stay Up-to-Date with the Latest Developments: The metaverse and web3 are rapidly evolving, us mediators and arbitrators must stay up-to-date with the latest developments. This includes reading relevant publications, attending conferences, and participating in professional organizations focused on ADR in the digital age. Already, there are some fantastic leaders emerging in this field who can provide a wealth of information on the latest developments in the legal metaverse world. 

Conclusion

The metaverse and web3 are expected to bring significant changes to the way we handle and resolve disputes. Mediators and arbitrators can prepare for a future career in mediating disputes involving web3 and the metaverse by acquiring knowledge of the underlying technology, obtaining certifications in ADR for the digital age, participating in training programs, staying up-to-date with the latest developments, and networking with other ADR professionals. With the right preparation, ADR professionals can be at the forefront of resolving disputes in the metaverse and web3.