Ethereum May Establish Its Own Supreme Court, According to Matter Labs CEO

Matter Labs CEO Proposes Hierarchical Court System for Ethereum

Matter Labs CEO Alex Gluchowski has introduced a concept for a hierarchical court system within the Ethereum network that resembles traditional judicial structures.

In a post on September 2, Gluchowski proposed the idea of an “Ethereum Supreme Court,” which would serve as the ultimate authority for resolving disputes related to smart contracts, eliminating the need for conventional legal avenues or attorneys.

The Concept of the Ethereum Supreme Court

Gluchowski highlighted that the main purpose of this court system would be to protect protocols from external political influences. He believes it would act as a strong deterrent, bolstering Ethereum’s reputation as a powerful network state.

He further elaborated that a multi-tiered system of on-chain courts would handle disputes and emergency upgrades, with the highest authority being an Ethereum layer-1 soft fork referred to as the “Court of Final Appeal.”

Each protocol would operate autonomously within this framework, equipped with mechanisms for both regular and emergency upgrades. A specific smart contract would be designated for initiating an appeal process.

During an emergency upgrade, an appeal window would allow any user to challenge a decision made by lower courts; however, this would require a deposit of a specified bail amount. The structure of the courts would be well-defined, with the Ethereum Supreme Court serving as the final option for appeals.

Existing Solutions and Their Challenges

Gluchowski pointed out that protocols such as Aave might be able to address disputes through courts like CourtUnchained or JusticeDAO. Following a ruling from these courts, parties could opt to escalate their cases to the Ethereum Supreme Court.

However, he acknowledged that for this on-chain court system to succeed, a strong social consensus is essential. He noted that the process could be expensive, which would ensure that only high-stakes cases are brought forth. Gluchowski provided examples that would justify such attention, including bugs in major protocols or instances where a DeFi protocol presents a systemic risk.

Despite recognizing the existence of various current resolutions for resolving disputes, he argued that their effectiveness is limited. He mentioned the shortcomings of time-locked features in emergency situations and the potential dangers of establishing a security council.

“A security council could only freeze the contract temporarily, requiring token governance approval for an emergency upgrade. However, this could allow a malicious majority of under-collateralized stakers to perform a takeover upgrade and seize all the assets,” he said.

Looking Forward

In conclusion, Gluchowski announced his and his team’s willingness to financially support research into this proposal. This initiative represents a promising move towards a more autonomous and secure future for the Ethereum network.