How Does Immutability Affect Dispute Resolution in a DeFi Contract?
Immutability means the contract's logic cannot be altered, making traditional dispute resolution (where a judge reinterprets terms) impossible. Resolution must be coded into the contract itself, often involving decentralized arbitration mechanisms.
If the contract is flawed or the oracle is wrong, the automatic execution is final unless a specific kill switch is coded.
Glossar
Traditional Dispute Resolution
Procedure ⎊ Traditional Dispute Resolution refers to employing established, centralized legal and judicial systems to arbitrate conflicts arising from financial agreements, contrasting with on-chain governance methods.
Immutability
Provenance ⎊ Immutability within cryptocurrency, options, and derivatives signifies the unalterable record of transaction history and contract terms, crucial for establishing trust and mitigating counterparty risk.
Dispute Resolution
Jurisdiction ⎊ ⎊ Dispute resolution within cryptocurrency, options trading, and financial derivatives frequently encounters jurisdictional complexities, stemming from the decentralized nature of blockchain technology and the global reach of digital asset markets.