Blockchain And Law: Decentralized Justice
- IJLLR Journal
- 20 hours ago
- 1 min read
Vishishta R. Yajurvedi, Faculty of Law, PES University
ABSTRACT
Blockchain technology has emerged as a revolutionary force, promising greater transparency, security, and decentralization across various sectors— including the legal system. Decentralized justice, powered by blockchain, challenges traditional legal frameworks by enabling dispute resolution mechanisms that operate outside conventional courts. This paper explores how blockchain can enhance access to justice, reduce corruption, and provide faster, cost-effective resolutions through smart contracts and decentralized arbitration systems.
A central focus will be Kleros, a decentralized dispute resolution platform that leverages blockchain and crowdsourced jurors to resolve disputes fairly and efficiently. While decentralized justice offers significant advantages, such as reducing jurisdictional constraints and ensuring immutable records, it also raises concerns regarding enforceability, ethical implications, and the potential for biased decision-making.
Despite the transformative potential of blockchain-based dispute resolution, widespread adoption remains limited due to regulatory uncertainty, lack of legal recognition, and technical limitations. The absence of a centralized governing authority raises questions about the binding nature of decentralized rulings and their compatibility with existing legal frameworks. Additionally, issues such as scalability, security vulnerabilities, and potential manipulation of juror incentives pose risks to the legitimacy of decentralized arbitration.
This paper will critically examine these challenges while exploring whether innovations in smart contract governance and blockchain regulation could pave the way for broader acceptance of decentralized justice systems.
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