Decentralized oracles, which provide off-chain data to smart contracts, often face disputes over data accuracy or reliability. Introducing off-chain judicial arbitration for dispute resolution can enhance trust and fairness. Arbitration offers a structured process where impartial experts evaluate evidence and make binding decisions, reducing reliance on potentially biased or manipulated on-chain mechanisms. It ensures disputes are resolved efficiently, maintaining the integrity of the oracle system. However, arbitration may increase costs and complexity, potentially conflicting with the decentralized ethos. Balancing on-chain governance with off-chain arbitration can optimize dispute resolution while preserving decentralization.