Method and system for implementing chargebacks on a distributed ledger system

A system for recording chargebacks in blockchain transactions, comprising:

• a memory of a processing server configured to store a first publicly accessible blockchain, wherein the first publicly accessible blockchain includes a plurality of blocks, each block being comprised of at least a block header and one or more data values, where each data value includes at least a unique transaction identifier and data corresponding to a processed payment transaction;
• a receiving device of the processing server configured to receive a chargeback request, wherein the chargeback request includes a specific transaction identifier corresponding to a unique chargeback transaction identifier included in a specific data value in the first publicly accessible blockchain;
• the processing server configured to generate a first transaction data value comprising at least the specific transaction identifier, a first new unique transaction identifier, and data indicating that a chargeback is requested for the corresponding payment transaction;
• and
• a transmitting device of the processing server configured to electronically transmit the first transaction data value to a first blockchain node, wherein
• the processing server is further configured to generate a second transaction data value comprising at least the specific transaction identifier, a second new unique transaction identifier, and data indicating a resolution for the chargeback requested for the corresponding payment transaction, the first transaction data value is data to instruct a smart contract configured on the processing server to generate and submit the second transaction data value to a second blockchain node, and wherein the smart contract is scripted on the processing server acting as a node storing a blockchain that self-executes upon the resolution of the chargeback request and when the smart contract does not self-execute upon the resolution of the chargeback request after a predetermined period of time following receipt of the chargeback request, the second transaction data value indicates that the chargeback request has failed once the predetermined period of time has expired, and
• the transmitting device of the processing server is further configured to electronically transmit the second transaction data value to the second blockchain node.