Decentralized court room and how they work?

In modern years, the digital economy has experienced an increasing number of transactions. Traditional resolution methods such as court and international mediation are ineffective for handling a large volume of claims across national borders. Decentralized justice is a new method to online dispute resolution that combines blockchain, crowdsourcing and game theory in order to produce resolution systems that are radically more efficient than existing methods.

This blog deals with a review of the decentralized justice system and the players contributing in it. It presents a number of key dimensions of the industry and reviews the tool design choices made by these different platforms. Finally, it discusses a growth theory for the industry and how it may grow in the future.

The Industry of Decentralized Justice

Ronald Coase claims that under certain conditions collaboration between agent’s yields good results in terms of economic efficiency and social capital. The ability of blockchain to simplify the transfer of value and self-enforce contracts results in lower transaction costs. The blockchain’s features of disintermediation, immutability and transparency make it potential to visualize wide applications in industries as varied as e-commerce, finance, insurance, healthcare and social media.

Smart contracts are “smart” enough to self-execute as mentioned in their code. However, they cannot handle situations that are open to clarification by the parties. Proceedings between parties reduces the speed and automation of the transactions’ performance resulting in high legal insecurity and high transaction costs, losing all the gains created by smart contracts

Decentralized justice platforms are a form of “digital courts” supported by blockchain technology whose purpose is the settlement of disputes by crowdsourcing judges under economic reasons to provide fair rulings. Decentralized justice platforms aim to provide a way to resolve difficulties of reading integral to smart contracts thus lowering transaction costs and enabling the prosperity of many decentralized applications built on blockchain.

Objectives of decentralization

Whereas the stimulus of decentralization will commonly vary from state to state, the following two sets of objectives are the most dominant:

• Principle of subsidiarity: The services efficiently provided by lower levels of government should fall in their responsibility, to distribute public power broadly to achieve more effective and reactive government to extend access to government services and economic resources to encourage more public participation in government.

• Diverse groups can live together peacefully; This let stakeholders representing minority regions find their space in the system, thereby supporting the stability of the state by influencing them to stay loyal.

Features of Decentralized Justice

Decentralized justice developments have made different selections in a number of dimensions regarding mechanism design. Similarities and differences among projects include the following dimensions:

Case Complexity

Different mechanism adoptions affect the different types of disputes that platforms can manage. All platforms can determine binary cases where the decision is to be made only between two options. Some platforms have the right to resolve non-binary cases.

Jury Selection

Different platforms have different choices based on their selection process of jurors, in specific, the probability of inspecting jurors based on specific criteria such as skills. Kleros and Aragon do not offer a tool to select jurors based on specific criteria.

Reputed Effects

Different platforms have different approaches on the growth of reputation as jurors. Kleros and Aragon trust especially on crypto economic inducements created by a token while Jur takes juror status into deliberation.

Appealing Mechanism

Different platforms have different ranges as per the prospect of consumers to appeal rulings. Some platforms let appeal rulings while others do not.

Governance Model

In Kleros and Jur, the platform token is used for authority (e.g., to decide software upgrades). In Aragon, different tokens are used.

Implementation of Decentralized Justice

The decentralized justice industry is at a primary stage. In May 2020, the number of users of decentralized justice platforms is lower than 1,000. Implementation is expected to increase as the applications from the blockchain ecosystem gain adoption

Decentralized justice platforms offer a more effective and trustless way of securing transactions compared to alternatives such as government courts, international arbitration and traditional online dispute resolution methods.

Since they are built on innovative theoretical designs and frictionless payments, decentralized systems offer a justice system that is radically cheaper and faster than alternatives while at the same time ensuring a fully transparent procedure


Decentralization generally arises for two reasons: (a) to find the delivery of services closer to the people, for productivity and accountability reasons; and (b) to promote coherence among diverse groups in a country, allowing a positive step of self governance. Particularly in societies ruined by violent conflict, decentralization can provide the peaceful coexistence of diverse groups, cultures and religions.



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