Dispute Resolution Mechanism refers to the methods used to resolve conflicts between parties involved in cryptocurrency transactions. As transactions can occur without a central authority, these mechanisms are essential for addressing issues such as fraud, breaches of contract, or disagreements over transaction details.Common methods include arbitration and mediation. In arbitration, an impartial third party makes a binding decision based on the evidence presented. Mediation involves a neutral facilitator helping both parties negotiate a resolution amicably, without a binding decision.Decentralized platforms may also use smart contracts, which automatically execute agreements when predefined conditions are met. If a dispute arises, these contracts can include clauses detailing how to handle conflicts, potentially involving community voting or other consensus methods. Effective dispute resolution builds trust among users, encourages fair practices, and promotes a healthier marketplace. Without these mechanisms, the risk of unresolved disputes could deter individuals from participating in transactions, hindering growth and adoption.