Nation3 is its own legal system because it has the power to create and enforce law.
Traditionally, nation states enforce law within their physical borders (their land). But Nation3 enforces law within its virtual borders, making it the internet's legal system.
The idea is simple: people can enter legal agreements over the internet, secured by Nation3's legal system. In case one of the parties breaches the agreement, they can open a dispute and take them to court in Nation3.
- Internet-native: No need to print, fax, pigeon or take a plane to attend a hearing. No need to wait years for a resolution.
- Professional judges: The Nation3 DAO elects vetted professionals to resolve disputes. Judges have skin in the game and are incentivized to make fair rulings.
- Limited liability: In Nation3, each party entering an agreement deposits crypto as collateral — the maximum amount they can be liable for, in case of breach. No surprises.
- Checks and balances: The Nation3 Constitution lays out the mechanisms for law creation and the separation of powers between the judiciary, the legislative and the executive.
- High legal standards: In Nation3 it's unconstitutional to pass law with retroactive effect. Nation3 also adheres to the Universal Declaration of Human Rights.
- Encrypted and private: In case of dispute, all communications between the parties and the judges are end-to-end encrypted. And, by law, all evidence must remain private.
In order for Nation3 to create and enforce law, the following building blocks are required:
- Constitution: A fundamental document outlining the powers of the Nation3 state, its governance and its checks and balances.
- Laws: The laws to be enforced within the Nation3 jurisdiction.
- Contracts: The contracts entered by the Nation3 DAO with key parties (e.g. judges).
And the following stakeholders:
- Citizens: Ultimately govern Nation3 via the Nation3 DAO.
- Judges: Resolve disputes. Elected by the Nation3 DAO.
- Guardians: Oversee the work that guild/contractors carry out for the Nation3 DAO. Elected by the Nation3 DAO.