Woofun AI reports that the GenLayer Foundation, led by CEO and co-founder David Riudor and co-founder Albert Castellana, has launched a specialized internet court designed to adjudicate conflicts between autonomous AI agents. This initiative addresses the critical infrastructure gap in the emerging agent economy, where automated entities increasingly handle high-volume transactions without human oversight. The platform, operating on the GenLayer blockchain and based in the Cayman Islands, aims to provide a scalable, automated justice system for the decentralized web.

The proliferation of AI agents across major technology and financial sectors underscores the urgency for such dispute resolution mechanisms. Robinhood has already integrated AI agents that analyze market fluctuations and execute trades autonomously based on user instructions. In the enterprise sector, SAP’s Joule assists corporate clients by analyzing inventory levels, identifying optimal suppliers, and completing procurement processes. Amazon’s 'Buy for Me' service employs shopping agents that scan the internet at machine speed to negotiate terms with seller agents, determine delivery schedules, and process payments. Major industry players including Anthropic, OpenAI, Coinbase, Circle, and Dragonfly are actively developing technologies to accelerate this agent-driven future, creating a complex ecosystem where automated interactions are becoming the norm.

However, the automation of commerce introduces specific risks that traditional legal frameworks are ill-equipped to handle efficiently. AI agents are prone to 'hallucinations,' leading to errors such as ordering a sofa in the wrong color, delivering goods two weeks late, or receiving damaged items while sellers dispute liability. These seemingly minor logistical failures can accumulate into significant financial losses. David Riudor notes that agent-based commerce is at a critical turning point, yet the industry remains unprepared for these potential outcomes. The GenLayer blockchain serves as the underlying infrastructure for the internet court, which operates without human intervention to resolve these conflicts rapidly and cost-effectively.

The internet court mechanism is supported by 26 crypto and AI companies, including the exchange OKX, wallet provider MetaMask, and Binance’s BNB chain. The system is not intended to replace human judges entirely but to facilitate contracts with clear, pre-defined terms. When disputes arise, an AI jury evaluates evidence and issues rulings within minutes. Albert Castellana emphasizes that this approach offers a viable alternative to traditional legal systems, particularly for small claims. For a $10,000 claim, hiring a lawyer is economically inefficient, whereas the GenLayer system can resolve the issue for a few cents, ensuring that minor disputes do not result in unacceptable losses.

The market potential for agent-driven transactions is substantial, driven by rapid adoption trends. Since October 2024, retail website traffic driven by AI recommendations has increased by more than 14 times. McKinsey predicts that by 2030, AI agents could facilitate $3 trillion to $5 trillion in global consumer transactions. Despite this growth, most existing infrastructure focuses on the 'smooth path,' where agents successfully find desired items, complete payments, and receive services without friction. The lack of robust dispute resolution infrastructure for the 'rough path'—where errors occur—remains a significant bottleneck for the widespread adoption of autonomous commerce.

Initial use cases for the internet court have emerged in verifying content authenticity on social platforms like Collective Memory. This platform rewards users for uploading real-time photos, videos, and reports, but determining the authenticity of disputed content is challenging. The GenLayer system assesses videos from bombed schools in Gaza or scenes from streets in Tehran by analyzing factors such as upload time, location, related submission records, and the user’s historical activity. This application demonstrates the court’s ability to handle complex, multi-factorial disputes beyond simple financial transactions, laying the groundwork for broader integration into the agent economy.

The technical architecture of the internet court relies on blockchain validators and multi-model AI juries. Each jury consists of 5 randomly selected blockchain validators, each running a different model such as Claude, GPT, or Gemini. One validator acts as the leader, proposing an initial decision, while the others vote secretly before publicly stating their agreement. If consensus is reached, a 30-minute dispute window opens, allowing agents or humans to challenge the decision by posting a bond. If challenged, the jury size expands to 11 members, continuing until consensus is achieved. This mechanism is based on Condorcet’s jury theorem, proposed by Nicolas de Condorcet in 1785, which posits that the probability of reaching a correct conclusion increases with the number of independent evaluators. GenLayer argues that a combination of multiple models is more resistant to manipulation than a single model or human arbitrator.

Woofun AI data shows that the network currently processes approximately 350,000 transactions per day, resulting in 20,000 to 25,000 decisions. The system is in the testing phase and is planned for official launch later this year, with token issuance intended to attract more validators. Beyond agent-based commerce, the system is expected to serve prediction markets. Polymarket currently relies on the UMA protocol for dispute resolution, but AI-assisted rulings could offer greater speed. Andrew Hall, a professor at Stanford Graduate School of Business and research advisor to Andreessen Horowitz’s crypto team, notes that large language models can help scale prediction markets because they cannot be bribed and their performance improves over time.

However, he warns that models can still suffer from hallucinations and may be manipulated through clever prompts or contaminated training data.

Industry standards and competitor initiatives are also evolving in response to these challenges. Lindsay Lin, CEO of Dragonfly, highlights that many large language models are interconnected due to shared training data, making them less independent than human judgment. Nevertheless, AI is preferred for low-value disputes due to its cost and speed. The American Arbitration Association’s International Center for Dispute Resolution recently announced a 'legal context protocol' standard for agents, developed with Denver-based Integra Ledger and supported by Google, IBM, Circle, and Ava Labs.

Meanwhile, real-world legal conflicts involving AI agents are emerging. In November 2025, Amazon sued Perplexity, accusing its AI-powered Comet browser of making unauthorized purchases. A federal judge in California issued a preliminary injunction in March, which was later suspended during appeals. These cases illustrate the growing complexity of regulating AI agents.

The challenge of regulating millions of AI agents without a unified enforcement mechanism remains a critical hurdle for agent-based commerce. As infrastructure for agents to hire, negotiate, and pay each other rapidly develops, the need for standardized, automated dispute resolution becomes paramount. The GenLayer internet court represents a significant step toward addressing this gap, offering a scalable solution for the decentralized economy. Whether these systems will gain widespread adoption depends on their ability to reduce hallucinations and biases, as well as the broader industry’s willingness to embrace automated justice. This marks a pivotal moment in the evolution of digital commerce, where the rules of engagement are being rewritten by code rather than courts.