In the context of Blockchain and External Dispute Resolution (EDR), the process typically goes as follows:

Put simply, with blockchain technology, parties to a contract can digitize the agreed terms and also place the funds into the smart contract. The funds will only be released once the conditions of the smart contracts are met. When there is a dispute, the Smart Contract will automatically notify the lawyer in charge of the smart contract. The parties involved in the EDR such as lawyers, jurors will be rewarded automatically after the EDR is accomplished.

Though this concept seems to be relatively new, an open-source online dispute resolution protocol named “Kleros” is already at the forefront. Kleros uses crowd-sourced jurors to consider the evidence and settle the dispute.