Law systems in every country could be compared to some kind of software. It has a clearly understandable function — regulating and standardizing human behaviour by restricting or allowing. That’s how society works. It has its own vulnerabilities, it has commit history, it has contributors. There is also a popular integration of such systems called international law.

How does world deal with the law hackers? Jails, executions, fines, more restrictions… There are dozens of different penalties possible. But, the law is a very complex system and there should be a decisive mechanism to determine was that a crime or not. Artificial Intelligence has not come so advance now, so this is the place where it all breaks.

Traditional litigations are extremely expensive and time consuming. In aggregate, the cost of litigation amounts over 3 billion pounds per year in the UK and over 4 billion US dollars per year in the US. On average, worldwide it takes 15th months to settle the dispute. Now, evaluate the expenses in dead nerve cells. Cosmic numbers.

Isn’t it a perfect time to disrupt another sphere in our constantly “outdating” world? Smart contracts is a perfect tool to start with. The word “contract” itself means some kind of agreement between several parties. With the current law regulation of the blockchain sphere they are not a valid way to communicate because of some security issues and the lack of approval by the authorities.

We have decided to solve this problem by combining classic systems with innovations by creating Online Dispute Resolution (ODR) system. The starting point of it is COURTEOS which consists of three main parts.

Blockchain powered valid, irrevocable and adaptable Arbitration Agreement

The Parties sign with electronic signature the pre-approved template of Arbitration Agreement which may be incorporated either in existing traditional contracts or in smart contracts generated on the platform. There is flexibility in choosing:

• the language(s) of the arbitration,
• the number of arbitrators,
• the qualifications and identities of the arbitrators,
• other terms (form of communication and type of proceeding)

The Arbitration Agreement is recorded on the Blockchain and therefore it cannot be changed unilaterally or avoided. COURTEOS secures the legality of the Arbitration Agreement and the binding force of the Contract generated on the platform.

Compliant arbitration procedure on the blockchain

All actions and communications are recorded on the blockchain as separate transactions. Therefore, the fact of actions and its timing cannot be falsified.

Transaction model in a decentralized environment for the document flow can solve lots of problems with falsification and will make bringing evidence easier.

Legitimate Arbitration Award enforceable on blockchain

When the Arbitration Award is rendered by the arbitrators, it may be executed on the platform if Arbitration Clause was integrated into smart contract generated on the platform. In addition, the Arbitration Award may be enforced in state courts in the countries which adopted the Convention on the Recognition and Enforcement of Foreign Arbitral Awards and the UNCITRAL Model Law on International Commercial Arbitration.

To sum it all up, the system will bring a new level of convenience to the law system. Digital blockchain-based agreements can now be provided with the real law security. The best thing about it is that you can manage it from any imaginable place with Internet connection and a smartphone.

Decreasing time, cost and your headache in the consequence.

Now you have a proof that the upgrade for the whole law system is coming.