What is Kleros?
Kleros, is a new optional dispute resolution application built on Ethereum works as a decentralized third party to arbitrate disputes on all types of smart contracts. Kleros aims to provide the solution to the inevitable disputes that will arise in this global digital medium through the use of blockchain power to guarantee transparency and integrity in the selection process of the jury and the mechanics of game theory which is based on important concepts and your native Pinakion token (PNK) provides the incentive model necessary for juries to act honestly within the system.
Disputes will always be noticed in this field, however they are natural consequences of any interaction. Some conversations are handled through friendly agreements while in others only disagreements arise, but with Kleros both parties involved can be protected in case a contract is disobeyed.
This platform provides a network of juries with extensive experience in various areas available to resolve any type of dispute that will mediate between the parties to issue a fair resolution. With Kleros you can deposit the funds in question until the selected juries issue a verdict that yields final judgments quickly, economically, reliably and in a decentralized manner.
The Current Status of Dispute Resolution
With the globalization and digitalization that the world is currently experiencing in an accelerated manner and with a growing number of online transactions between companies and people around the world, in addition to the new cryptocurrency projects that are born every day in the world. blockchain ecosystem we realize that every time it becomes more complicated. If the blockchain promise becomes reality, in the not too distant future, most of the products, work and capital will be allocated through decentralized global platforms.
With the advent of technology there are many small businesses and individuals that make smart contracts, but when one of the parties violates the contract, the costs of bringing to court those who breached the contract are costly, embarrassing and slow. It is not worth filing a lawsuit because the cost of bringing it to court exceeds the cost of the contract. What makes it unfair to the company or the individual who is affected by the situation when it comes to small amounts of money.
Many websites offer arbitration of these cases, but offer low resolution protocols that are not suitable for particular cases, which often results in resolutions that leave one party with a complete loss. With Kleros arbitration is fast, secure and accessible for virtually any situation.
KlerosResolution mechanism
The Kleros resolution mechanism is composed of subcourts defined by categories.
After the creation of a contract the people involved will be able to select the details of their integration with Kleros they will choose:
• Number of juries
• Contract category
• Results
Thanks to this, individuals can rest assured knowing that if a confrontation arises, they will be treated by informed and qualified people in the space and in the event of a dispute, the juries will receive a series of possible results to choose from.
Source of the Image
E-Commerce Site with Kleros Integration
Jose wants to buy a shirt. He finds a decentralized e-commerce website called YourNewShirts.com. After looking at various designs and stores, he chooses an abstract cat designed shirt from Mario's Store. He checks out and pays using ETH.
Upon receiving the item, Jose finds some really small but noticeable holes in it so he contacts Mario. Mario refuses to replace the item. Jose files for a dispute on the website. Because YourNewShirts.com has Kleros integrated in their system, the dispute will be decided on by three random anonymous jurors.
Jose uploads photos of the said shirt still inside the sealed, clear and undamaged plastic wrapper. Mario also uploads a certificate as proof that each product was inspected for quality. Based on the evidence provided, all three jurors decide in favor of Jose. Their reasons will be visible as to why they voted for Jose. The buyer gets back the same amount of ETH he paid and the seller learns to double check each item before shipping anything in the future.
Kleros as a Source of Extra Income
Mary signs up to Kleros and buys 27 Pinakion tokens in order to be a juror. She has 10 years of retail and freelancing experience thus she selects the said subcategory under e-commerce.
One day, while waiting in line at the supermarket she gets an email alert. Mary checks her phone and sees she was randomly chosen as a juror to an opened dispute. She downloads the evidence from the email link. Upon reviewing everything she decides in favor of Eric and just put in a short general explanation. She then receives her share of the the arbitration fee and PNK token.
However, the next day she gets an email stating the opposing party has filed an appeal. Her juror payment gets returned to the arbitration pool.
The next time she was chosen as juror, she decides to be more thorough in the review and judging reason provided. This resulted in no appeals and she got to keep the fee and tokens she is owed.
Conclusion
The project will surely help those who are having issues deciding who is right. They may be cases as small as a price dispute and as big a those in real cases. Either way this will be a good (and cheaper) second opinion than going directly to a lawyer, court or police, specially online contracts wherein parties may be both on the other side of the world. I am looking forward on what this project will entail in the future.
For more information:
https://kleros.io/
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