NEWSLETTER-2020-metin

234 NEWSLETTER 2020 is done directly, not with an intermediary institution, as is done in the banking sector. It is based on the will of users: In other words, everyone involved in the system is in a consensus on the running of the system, in fact, this is basically the functioning principle of the system. Information security is very important: In the blockchain system, all users are identified on the network with private or publicly available keys. These keys are created with passwords and algorithms. Likewise, the confidentiality of transactions is ensured by these algorithms 2 . It largely eliminates human error: In fact, this is a conditional feature. If the algorithm design and the code written for its imple- mentation are flawless, human error is eliminated. In other words, the reliability and validity of a transaction depend on the accuracy of the algorithm underlying the transaction. Since each transaction is based on algorithms, which are mathematical models, it is free from human influence and, consequently, human error. Benefits of Blockchain Technology to Arbitration As an alternative to classical dispute resolution methods, arbitra- tion aims to be a short and specialized decision-making process. In this regard, the blockchain promises to be an ideal structure for the trial pro- cess due to the facts that there is no mechanism requiring approval and control at every stage, and the intermediary institutions are not included in the process. Banks, which are involved as intermediary institutions in legal and financial transactions, can be evaluated as an example in this regard. Costs will arise at every stage of the transactions carried out by banks and credit institutions, and it takes a certain period of time to complete the transactions. The blockchain system aims to proceed more efficiently by removing such institutions from the process. Moreover, digitizing the arbitration process will undoubtedly drive down costs. Furthermore, in terms of privacy, it is foreseen that blockchain technology will minimize the security risks arising from sharing documents via e-mail and other similar means 3 . 2 Gary L Benton FCIArb, “ Beyond the Bubble. ” Chartered Institute of Arbitrators (CIArb). 3 “ Blockchain – A Suitable Tool for Arbitration? ” https://iot.taylorwessing.com/