The Blockchain Dispute Resolution Layer

Introduction

When money is at stake, associations based on friendship or trust can suffer as natural interests arise on both sides that perhaps were not taken into account at the beginning, perhaps many of us pass? business or we just made a transaction, we need to have a guarantee that the agreements of this transaction will be fulfilled by the parties involved, we already know that there are many honest people on the Internet, but also many malicious people, who will not miss the opportunity to cheat some unprepared, in this way and to find a solution to this problem comes Kleros.

But what is Kleros?

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It is a platform designed to perform arbitration as a third party in the disputes of commercial or business contracts, through the use of specialized juries in various business forms through the digital network, which can guarantee an impartial and completely decentralized resolution. The total impartiality of the decisions is guaranteed through incentives for the juries to direct the arbitration in a manner totally adhered to the objective facts of the contract or previously agreed upon agreement. Every time more super chains of companies like Amazon or ebay are trying to get their users to use shopping malls, and this is the worldwide trend. We are at the beginning of something that will mark digital commerce in the not too distant future, but if you buy a object and this does not meet the agreed specifications how to make a claim? With the use of Kleros could respond to these disputes more quickly and efficiently.

How does the use of judges work?

Everything is based on the theory of Thomas Schelling, (you can see details of the theory in whitepaper page 2) which have been used in the resolution of conflicts and in the prediction of markets, basically the use of this system allows you to have certain guarantee that the judges will stick to the truth since an incentive that could be a percentage of the dispute in question will depend on them, through a simple statistical system, the albits that coincide in a majority response will receive that reward in that way it is sought that everyone sticks to an objective criterion based on the terms of the contracts and not on subjective opinions about the conflict in question, those that have a percentage index of what is wrong, will be gradually removed from the system.

If the teacher, with 20 of her students, was in a classroom, and the students were asked to say the color of the teacher's clothes, in order to approve the current subject, they will all want to tell the truth, and if there were any would not be exposed, if 19 students say green and one says blue, we would have 19 people benefited and one which if it fails again in 10 more similar questions like that, would be discarded, for not being a reliable judge.

It must be taken into account that the juries will be selected in various parts of the world making it impossible for them to know each other, being able to choose one in France and another in China, randomly based on their prestige and knowledge about the subject.

Example of court arborescence from which smart contract creators must select a court.

What are the guidelines for resolving Kleros conflicts?

Well the first thing you should know is that this system is optional, those involved in the contract choose the number of judges that will participate and what and which court will decide on your contract, it is important to choose specialized courts in the type of contract that you carry Go ahead, if it's software you'll want to use a specialized software court.

The juries involved in the resolution of the dispute will receive a series of possible results, among which they will be able to choose the appropriate answer without issuing subjective opinions.

how is kleros security?

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During the resolution of conflicts contracts or agreements between the parties, it is likely that private or privileged information will be sent to help the judges, in order to prevent external observers from having access to that information, contracts and voting. of the juries will not be placed in the chain of blocks. "The contract creator sends {contract text; option list; salt} to each party using asymmetric encryption. This way, parties can verify that the submitted hash corresponds to what was sent to them. In case of a dispute, each party can reveal {contract text; option list; salt} to jurors which can verify that they correspond to the hash submitted. They can do so using asymmetric encryption such that only the jurors receives the text of the contract and of the options. All these steps are handled by the application users will run while using Kleros"

Incentive that guarantee the objectivity of the judges?

Kleros assures judges that even though the costs of resolving a conflict are low, juries may have compensation for doing the job properly and professionally, ensuring a better reputation will have access to resolution of larger financial conflicts than they will leave better profits.

"For example, if there are five juries, with "A" and "B" result options. If four choose "A" and one choose "B", option "A" will win. In this case, the only judge who voted "B" will be considered incoherent. Although a dispute is not very revealing, if a judge governs incoherently 90% of the time in more than 100 cases, it is clear that they are a poor judge and would lose tokens."

how is the voting system

The votes of the juries can not be seen by other juries to avoid being influenced by the trend, and end up going in the direction of a specific trend, if not its objective assessment on the case in which you work.
Even if a jury revealed its vote, the others could not know if it is true or not, forcing the jurors to trust their own assessment to resolve the conflict.

How arbitration is carried out?

You can avoid malicious attacks or digital pirates who want to use the system improperly, creating false disputes since the juries will receive compensation as fees.
Those involved in the dispute will deposit an equal amount for the arbitration of the contract, if some of the two parties do not make the deposit the court will automatically fail in favor that if it did, if both parties deposit the funds, the winning party will be reimbursed once you are responding to the conflict.

Conclusion
The growing market for the use of criticism is unstoppable and must have tools to resolve financial conflicts, as in traditional banking; Now many more people will have to safeguard their investments or buy businesses, Kleros will be that tool. Who will solve these problems? However, we should not lose sight of the fact that as more people join these types of transactions, the challenges to reach a more reliable and faster conflict resolution system appeared.

for more information see this video tutorial

if you want to know more:

• Kleros Website
• Kleros WhitePaper
• Kleros Medium
• Kleros YouTube
• Kleros Telegram
• Kleros Twitter
• Kleros Github
• Kleros Forums

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