Law Blocks is a decentralized oracle designed to provide a dispute resolution or select data for smart contracts and digital platforms. The benefit is to obtain a dispute resolution at low cost.
The system does not have the legal force of arbitration. The goal is not only to achieve legally binding decisions, but also to resolve issues concerning small sums that cannot be effectively resolved with any other system because the value is so low, payment of arbitrators is not possible. These kinds of disputes usually remain unresolved in the current system which does largely impact the business system.
The Community Layer combines the ability to limit participation in dispute resolution to authorized experts with the low cost of the Open Layer’s stake-weighted incentive based voting system.
- The system is designed for disputes of medium complexity and value, and to issue decisions in an estimated minimum time of 24 hours to an estimated maximum of 1 week.
- The disputes are decided by voters according to incentives and voting mechanisms that are largely the Law Blocks).
- The vote is not open to everyone, but rather only to communities of selected voters.
- Anyone who wants to start a community (the "Community Creator") can do so through the software and user-friendly interface provided by Law Blocks or by interacting directly with the smart contracts.
- Similar to what happens for the selection of arbitrators in the Court Layer, the Community Creator may centrally evaluate the applications of the voters. Alternatively leave this evaluation to the decentralized channel of the Open Layer. In both cases, the requirements for becoming a voter must first be established by the Community Creator.
- The Community Creator may, at its discretion, require the payment of a fee by those who wish to use its community to resolve a dispute. This feature is available because Open and Community Layer votes are zero sum games. In the Open Layer, one can reasonably hope for a long lasting supply of losing voters. In a closed Community, this may not be sustainable without a fee to add potential revenue for voters and create a positive sum game where the average of all results is a win.
- All the characteristics listed so far converge towards the objective of providing groups of voters with greater skills than those voting in the Open Layer, as a reflection of the greater complexity of the matters to be dealt with.