Blockchain technology and smart contracts can have multiple uses when it comes to decentralized justice. According to Investopedia, a smart contract is a self-executing contract that has the terms of an agreement between buyer and seller written into lines of code. The code and the agreements that make up the smart contract exist in the blockchain network with code controlling the execution. The transactions are traceable and irreversible.
It is expected that smart contracts will become a relevant legal tool in this era. Indeed, blockchain technology will facilitate business negotiations, agreements, and terms of resolution between parties. Decentralized justice will be promoted by having a public record of immutable contracts that will ensure a detailed and traceable record.
Smart contracts will provide a fast, transparent, and inexpensive means for dispute resolution in a decentralized justice system. Admission of these contracts into the blockchain judicial system will not only enforce integrity but also reinforce all aspects of a resolution of a claim.
Kleros is a voluntary opt-in system and parties must have a contract that states that any dispute will be adjudicated in Kleros. Parties agree on a contract template, modify where necessary, and agree to pay an arbitration fee in case there is a dispute.
In case of a dispute, all relevant evidence will be sent to Kleros, which will secure it using public-key cryptography. The next step is to select the jury. Users who are selected as jurors will have access to the evidence and analyze it before they vote on a decision. These jurors never meet, and they perform their duty independently.
After analyzing the evidence, the jury will vote and provide a justification for their decision. It is not possible for the jurors to reverse their decision. Once all the votes are cast, the winning option is the median one. A party can appeal the decision if they don’t agree with the outcome. Hereafter, the token redistribution takes place.
A blockchain judicial system will support the paradigm shift when it comes to online work ethic. Its decentralized justice network, accessibility, and compelling technology will play a major role in future courtroom proceedings.