lani123lani

5 лет назад

KLEROS || Bringing Decentralization to Arbitration.

In a world as big and as free as ours, conflicts are inevitable, because we are all rational beings, whose rationalities has been forged from wide, wild and completely different experiences. At certain stages in our lives, we are bound to have disputes and disagreements, but when we encounter these problems, what do we do?

Do we take the case to the traditional court which is prone to bribery and unfair judgement due to its centralization? Do we spend a whole lot to even get the case before the Judge and the Jury who are likely to adjourn the case by months due to their case-full hands? Or Do we just let the case roll off because it's not a kind that can be handled in the "court"?

Don't get me wrong, I'm not trying to defame the current court system, I'm just trying to point out that it is too traditional and so cannot even be called current because of its inability to handle contemporary disputes, that it is too expensive and so open its doors only to the rich and big businesses and not individuals, too time-consuming and so deter immediate progress and finally too unreliable and so allows victims to be victimized all over again.

Given the pace and widely different transactions happening across national boundaries, there needs to be a dispute resolution system integrable to all kinds conflicts that arises in all kinds of value transactions, that provides swift verdict to disputes in an inexpensive, reliable, dependable and decentralized manner. There needs to be Kleros.

Introducing Kleros

Kleros (Pronounced clear-us) derived from a greek word which means "received by lot", in other words "received by judgement". The Kleros project is a blockchain based dispute resolution layer for every kind of contract ranging from insurance and curated lists to Oracle and Microtasks. This Ethereum based decentralized application does not depend on the honesty of some few individuals, but it uses a game-theory economical incentives to make the randomly selected jurors pass correct verdicts on a wide range of cases.

Kleros is built from the modification of the Schelling Point concept which provides economic incentives based on judgement alignment with truth. Jurors who vote otherwise are penalised. And so, Jurors vote for the truth because they expect others to vote for the truth who expect others to vote for the truth. The Schelling Point only works when there's no communication between jurors and so it is perfect for a fair decentralized digital court system.

Until now, settling disputes in court required so much paperwork, communication between jurors whose identities were not protected, final verdicts left to human sentiments etcetera. Kleros takes the arbitration process to a whole new level from digitalizing paperwork and automating evidence security and jurors selection to protecting their identities while they vote on whose right and the final verdict is left for a smart contract which initiates an action based on majority of votes.

How does Kleros

At the birth of a contract whatsoever, with the agreement of both parties, the value involved is blocked in kleros multipurpose smart contract. Should both parties be satisfied with the outcome of the business dealings, the funds is released by the payer. But if there is any breach of interest, either the payer or the payee can send the case to the Kleros court.

The case is sent to kleros after a form is filled providing the options for the Jurors to vote on. Like a waiting order on Kleros, individuals from different walks of life in the plaform can stake Pinakions (PNK) - Kleros' system token - in order to get selected as a Juror in the dispute. The Pinakions staking is for two main reasons;

• To help the Kleros system militate against Sybil attack. An attack where a malicious party would create a high number of addresses in order to control the system by increasing the number of times his created addresses is drawn thereby increasing his voting weight altogether.

• To incentivize and penalize honest and dishonest voters respectively.

The probability of selecting Jurors is also proportional to the number of tokens deposited. Tokens are drawn from the total pool of tokens by manipulation resistant number generation with the proof of work consensus algorithm and each drawn token represents a prospective Juror. Let's say the dispute above requires 7 Jurors, then 7 Pinakions are drawn from the entire pool of deposited Pinakions. In practice, there's a very slim chance that Pinakions from the same individual is drawn more than once. The number of times an individual's Pinakion is drawn from the pool indicates his entitled voting power for that dispute.

The selected Jurors are presented with the case creator's claims and evidences, alongside the voting options. Jurors whose vote are coherent with the majority are rewarded with 10% of their deposited tokens and Jurors with incoherent vote lose 10% of theirs. Depending on the the votes, the value involved in the business from which the dispute ensued is transferred to who majority of the Jurors think should have it. Now you should note that Jurors vote honestly because they expect other Jurors to vote honestly too who also expect others to vote honestly in order not to lose 10% of their Pinakion tokens.

Should any party be unsatisfied with the verdict passed, they have the liberty to appeal to Kleros, which repeats the entire process but with two times plus one the previous Jury size, who will again deliberate the entire case. It's worth noting that arbitration fees are collected for each case submitted to the Kleros court which is way less than the fees required by traditional courts.

Kleros | The P2P Court System.

Cryptocurrencies brought forth the Peer to Peer banking system which has greatly reduced transactions costs and increased transactions speed. Kleros is geared up to do the same for dispute resolution as it gives power to the world's populace in different niches and specialization via blockchain crowdsourcing and ensures their honest behaviors through game theories and the decisions enacted through smart contracts. Being fast and affordable, Its integration into Social media, gaming, ICOs or Crowdfunding, e-commerce, Oracle, e.t.c

In all these cases, Kleros serves as a middle layer which helps to ensure honesty and fairness in all these dealings. With it's affordable price and decentralization, honest individuals and small businesses have the liberty of challenging fraudulent and unethical big businesses who try to oppress them in any transactions between them. Understanding the fast pace of globalization, Kleros aims to always keep itself updated and blended with the trend as it modifies its smartcontracts to be more up to date to the different kinds of transactions that springs up by the day.

Taking the field of e-commerce for an example, specifically freelancing or microtasking, Kleros could serve as the escrow between those who wants to get a job done and those who do the Job.
On online stores like eBay, Amazon etcetera, Kleros will help make refunding policies effective and fair. Customers can call for refunds if they aren't satisfied with the delivered products and if the e-store administration is not okay with the callback, the case can affordably be taken to Kleros court.

Kleros makes dispute settling possible for everyone and not just barristers. It's incentivisation system and smartcontracts implementation system takes the difficulty of peace and conflict resolution. With just the already possessed skills in a particular niche, Kleros arms professionals from all niches to become people of the law in their own specialization and easily earn some extra income.

A Job Contract Use-Case

Jim signs a 5year contract with a web development firm which clearly specified that if this contract is terminated before the 5years length, he would be paid 50% of that year's salary as he leaves the company. Some 2years later, a new administration comes in and they are seriously downsizing and retrenching a lot of workers. Just as they are about firing Jim, He calls the attention of the new administration who seem to have forgotten this term of the contract. Other retrenched workers tried taking this case to court, but it was too expensive to even get a lawyer to defend them. Jim on the other hand, had gotten the firm to sign the contract via Kleros, which had locked in the contract amount of funds. Being told to go to hell by the administration, Jim submits the case to Kleros which is Judged by some experts in firms' administration and web development as well, who supports Jim and votes for his "50% retrenchment salary" which initiates the smart contract that pays the funds into Jim's account.

Dodges on Trial is a pilot experiment provided by Kleros team to show the flow of the Kleros platform. See the flow chat below;

In the case above, you get to Judge if the uploaded image is a dodge or not.😁

Kleros Team

You can be a part of Kleros team too, Just contact them through the telegram channel listed below.

Kleros Advisors

Kleros Partnerships

Kleros Media Mentions

Kleros has been mentioned by reputable media channels who respect this innovative Solution that Kleros brings with the blockchain technology. Some of these channels include; Venture Beat, Nasdaq, Forbes, International business times, Bitcoin news, Fintech Futures e.t.c

More Information & Resources

See Short Video Below for additional Clarity of the Kleros Concept;

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Username: lani123lani
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