According to Cointelegraph, Matter Labs CEO Alex Gluchowski has proposed an Ethereum court system resembling a hierarchical court system similar to the real world. In a recent Twitter post, Gluchowski suggested the creation of an 'Ethereum Supreme Court' that would serve as a final stop for parties to dispute smart contract issues, rather than needing to take matters to a traditional lawyer or court.

Gluchowski's concept involves a hierarchical system of on-chain courts handling disputes and emergency upgrades, with an Ethereum layer-1 soft fork as the 'Court of Final Appeal.' In this system, every protocol would have its own governance with normal and emergency upgrade mechanisms and would designate a special contract that can trigger an appeal.

When there is an emergency upgrade to a protocol, there would be an appeal period during which any user can submit a challenge to the higher court, but they would have to put up a pre-defined bail deposit. Each court specifies the higher court to appeal to, with the Ethereum Supreme Court serving as the final destination for challengers.

However, Gluchowski acknowledged that a strong social consensus would be needed for the on-chain court system to work. He added that it would be expensive so that only 'truly extraordinary' cases would be brought before it. Gluchowski also noted that there were several existing solutions to such disputes, but argued that they aren't effective.