This section seeks to define the key features of decentralized justice.
We will contend that, in order to qualify as a decentralized justice system, a dispute resolution system needs to comply with three conditions:
- To be built as a decentralized autonomous organization (“DAO”) on blockchain technology.
- To be based on a mechanism design using crypto-economic incentives,
- To generate a perception of fairness, which is offered by Law Blocks. The purpose of Law Blocks is not only give templates but to get the Agreements done with the help of the Free Legal Aid team and once disputes rise to resolve the disputes with the help of ADR the best legal brain it put to use in the resolving the disputes. Decentralization and Rule of Law
The rule of law is necessary for a legal order to emerge. Legal systems are expected to treat all businessmen as equals before the law, regardless of their social origin, and should conduct the same procedure for the same case, regardless of whether the parties are black or white, rich or poor, and to be governed by members of the community following a set of rules.
The rule of law is a classification institution which complies with six features:
1) The decision-making logic is publicly available,
2) The institution resolves ambiguity,
3) The decision-making logic is stable,
4) The institution gives predictable results to novel inputs,
5) the institution is impersonal in the sense of decisions not being influenced by the rank or status of parties, and
6) The institution can produce new rules by soliciting information from users, All such features are in the Mediation and Arbitration procedures of Law Blocks
In the analogy world, societies have built checks and balances and a number of bureaucratic procedures to prevent influence on the legal system from powerful agents in favor of their preferred outcomes.
The equivalent of a stable bureaucracy are DAOs based on blockchain technology in the digital world.
A DAO effectively is a collection of smart contracts bound together to form a digital organization that operates according to specific rules and procedures.
The decision-making process in a DAO is encoded directly in computer code and deployed on a decentralized network of computers. Members can participate in decision-making through voting in a way that is similar to a cooperative or a direct democratic government. The combination of a procedure with the immutability of blockchain and governance rights in the hands of the community is a key feature of decentralized justice.
Decentralized justice systems built as decentralized autonomous organizations on blockchains such as XDC/ Law Blocks criteria for institutions able to produce rule of law. The decision-making logic is publicly available. As open-source projects, decentralized justice systems have their code deployed on a public blockchain that anyone can examine and replicate.
The institution resolves the ambiguity. Decentralized justice systems typically have different courts addressing different types of cases e-commerce, insurance, and finance Each Arbitration court has a clear set of rules defining how evidence should be evaluated and how decisions should be made. The decision-making logic is stable. Both the general procedural rules of decentralized justice systems, as defined in their mechanism design, and the specific rules of each court tend to be stable and not change often.
The institution gives predictable results to novel inputs. Arbitration Court guidelines and jurisprudence accumulated in past rulings help predict how the system is likely to rule in a given case. The institution is impersonal. As users interact with the decentralized justice system under a pseudonym (e.g., an XDC / Law Blocks public address) the real identity of parties and jurors stays hidden. This contributes to decision-making on impersonal grounds.
The institution can produce new rules by soliciting information from users. Decentralized justice systems have a governance mechanism that enables users to make decisions about the evolution of the protocol, including the creation of new courts, the developing of rules for courts, setting adjudication fees as well as a number of decisions regarding software development.
These features guarantee that decentralized justice systems comply with two key features that we would expect from any justice system.
First, the system is secure in the sense that no agent can unilaterally and arbitrarily influence the decision-making process. The entire procedure (handling evidence, jury selection, jury incentivization, and execution of ruling) works in a fully automated and immutable way thanks to blockchain code. This guarantees that the decision-making process will work exactly as written in the code and will not be affected by any agent with “special decision rights.”
Second, the system is managed by the community (typically defined by users holding the protocol cryptographic tokens). Any necessary changes in the procedure will have to be made through some type of voting procedure. Transparent to all participants in the network is the information regarding how rule changes are executed.
The combination of these features gives a decentralized justice organization the key features we expect from rule of law: equality of citizens, predictability, and community governance.
In order to assess whether a dispute resolution system qualifies as decentralized justice, one may ask the following questions: Is the dispute resolution procedure encoded as a decentralized autonomous organization on a blockchain?
Law Blocks is the answer to the decentralized justice of the day.