Applying blockchain to the modern legal system: Kleros as a decentralised dispute resolution system

Abstract

This paper examines the use of blockchain technology in the legal system through decentralized online dispute resolution mechanisms, with a particular focus on Kleros. While Kleros offers a potentially more accessible, efficient, and fair way of resolving minor disputes, concerns have been raised about the potential bias caused by jurors accumulating cryptocurrencies. It is criticized that Kleros and similar decentralized systems are perceived to be a more accessible, quicker, cheaper, and fairer way to resolve disputes. However, important questions have been raised about the financial interest of jurors and how it may diminish the role of the rule of law and impede its evolution. Despite these concerns, the authors argue that Kleros has the potential to introduce blockchain into the national judicial system. To achieve this, measures such as allowing parties to select jurors with specific qualifications and setting a fee proportional to each juror’s Pinakion (PNK) should be implemented. Furthermore, clear instructions on the use of cryptocurrencies and blockchain in the Kleros system should be provided to promote transparency and understanding for all participants. Overall, this paper contributes to the discussion on the use of blockchain technology in the legal system and highlights the need for careful consideration of its potential impact on the rule of law.