¿ 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.
Sputes 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.
KlerosIncentive System
Kleros's incentive model uses an optimized version of the Schelling Coin concept that derives from Schelling Point's concept of game theory.
With respect to Kleros, his platform uses an optimized version of this concept to encourage juries to vote coherently with others through financial incentives with their PNK token. Although the dispute resolution prices are low, the judges receive compensation to do a good job.
Selection of the Jury
When a case selection begins, a random process is used that uses a sequential work test to select jurors from the group. The probability that a jury will be selected for a case directly correlates with the amount of PNK tokens they deposit.
The jury system can also deduct good juries from poor juries based on the coherence of their votes.
For example, if there are five juries, with result options "C" and "B". If four choose "C" and one chooses "B", option "C" 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.
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How Klerosprotects you, example
Rachell decides to buy and install a security system for his incipient business. After saving money, he is very happy and contacts SICE Security, an approved company for the installation and maintenance of security systems to make the purchase, the contract stipulates that he must pay $ 2000 and the installation requires 5 days.
As the company is not well known and has no references to its reputation, Rachell decides to create an intelligent contract with Kleros, this contract stipulates that if a dispute is urgent there will be 5 juries specialized in security companies and their options will be:
A. Return the total amount to Rachell
B. Pay the total amount to SICE Security
C. Item 50/50
The company installs the security system, but Rachell is not satisfied since the specifications of the installed system do not comply with the stipulations of the agreement. A dispute arises and Kleros begins the selection process of the jury and, shortly after issuing a verdict, they choose the "A" option and Rachell receives the money back instantly
Source of the Image
For more information watch this short feature intro:
More information and resources:
• Sitio web de Kleros
• Kleros WhitePaper
• Kleros Medium
• Kleros YouTube
• Kleros Telegram
• Kleros Twitter
• Kleros Github
• Foros de Kleros
The Team
The contest in case you want to participate: LINK
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