How Do Smart Contracts Handle Disputes?

Smart contracts are deterministic and execute code as written, minimizing subjective disputes. When a dispute over external data or contract conditions arises, they often rely on decentralized oracle networks like Chainlink for verified information.

Alternatively, specialized on-chain dispute resolution systems, such as Kleros, can be integrated. These systems introduce a layer of human review or crowdsourced consensus to resolve ambiguities outside the core contract logic, ensuring a fair, final execution.