Proposal for an Ethereum Supreme Court to Address DeFi Challenges
In a recent Twitter thread, Matter Labs co-founder and CEO Alex Gluchowski proposed the creation of an “Ethereum Supreme Court” to address the challenges faced by the decentralized finance (DeFi) ecosystem. The court would establish a hierarchical system of on-chain courts, similar to real-world judiciary structures, to resolve disputes related to smart contracts. Gluchowski highlighted the deficiencies of current solutions, such as their inability to handle emergencies effectively and the complications in resolving fork-related challenges. He also explored the role of security councils and the concept of combined governance mechanisms. Gluchowski’s proposal suggests the creation of a standardized ERC interface and an appeal period during emergency upgrades. The Ethereum community has shown interest in exploring and developing this system, with Zksync indicating a willingness to fund research in this direction.
Main Points:
- Current solutions in the DeFi sector have limitations in handling emergencies and vulnerabilities effectively.
- Converting to alternative Layer 1 (L1) solutions exacerbates existing problems and fails to provide viable solutions.
- Assets bridged from Ethereum cannot be forked, complicating the resolution of fork-related challenges.
- Security councils and governance multisigs with emergency upgrade rights introduce regulatory and security risks.
- The proposal suggests the creation of an “Ethereum Supreme Court” with on-chain courts and a standardized ERC interface.
Hot Take:
Alex Gluchowski’s proposal for an “Ethereum Supreme Court” to address DeFi challenges is an innovative solution that could enhance the resilience and security of the ecosystem. By establishing a hierarchical system of on-chain courts, the proposal aims to provide a decentralized dispute resolution mechanism for smart contract-related issues. While there are challenges to overcome, such as the risk of overburdening L1 social consensus, the exploration and development of this system could lead to improved governance and greater confidence in the DeFi sector.
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