Globalization and digitalization. It is taking place exponentially in an increasing rate of online transactions between people across jurisdictional borders. blockchain is reality, of a new future, most of the goods, labor and capital will be allocated through decentralized global platforms. The disputes will undoubtedly arise. Smart contracts are smart enough to run automatically as scheduled, but not to make subjective judgments or to include elements outside the blockchain.

Existing dispute resolution technologies are too slow, too expensive and unreliable for a decentralized global economy operating in real time. A fast, cheap, transparent, reliable and decentralized dispute resolution mechanism that makes definitive judgments about the applicability of smart contracts is a key institution for the blockchain.

What isKleros

Kleros is a decentralized platform developed on the Ethereum platform, its main objective is to arbitrate disputes of all types of contracts from the simplest to the most complex. This system is based on the concepts of Game Theory to hire juries that can solve each of the cases in the most appropriate way, the team ensures to achieve a completely secure process fully automated slightly different to find justice for the different types of challenges related to escalation, subjectivity and privacy.

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Through the use of blockchain Ethereum with intelligent contract will provide a better service with evidence integrity and transparency A fast, cheap, transparent, reliable and decentralized dispute resolution mechanism that yields definitive judgments about the applicability of the key intelligent contracts for the blockchain era .

How does Kleros work?

• Arbitrary contracts and privacy

  
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The Kleros team presents a fast, transparent and economical dispute resolution mechanism that is completely reliable. The system ensures that smart contracts proceed automatically and does not include judgments outside the blockchain.

The creators of the contract choose the number of juries needed and the type of court that will solve your case and obtain multiple court options to choose from. Some of the legal arborescences existing in the system are electronic commerce, transportation, insurance, etc.

Based on the selection of the arborescence of the court the jury will have several options available to vote. Kleros assures that the privileged information of the parties will be kept private and the jury vote labels will not be published in the blockchain. Privacy is handled by implementing asymmetric encryption methods so that only the jury receives contract information.

• Selection of the jury and Votes

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Those self-selected candidates who wish to serve as jurors in Kleros, can invest a Pinakion [PNK]. There are different technologies to avoid malicious applicants and only possible depositors of chips will be considered and they will be given the opportunity to be a jury. The selection will be random by the system and once carried out the selection, the jury will be able to vote by the options that have granted in function of the arborescence. Each jury will receive payment based on the dispute they have resolved. The intelligent contract is responsible for the decision making of which party will pay the arbitration fee.

The parties have the option of appealing the final decision if they believe that the jurors have not given them full justice. The new appeals will have twice the number of juries that dealt with the initial decision.

After the decision has been made by Kleros, the tokens will be redistributed among the jurors who are incentive based on their honesty, and the tokens are granted as long as their votes have been consistent with the other group of jurors.

Applications

Kleros is a general and multipurpose system that can be used in a large number of situations. These are some use cases:

• Escrow: to pay for a good or service outside the chain, the funds can be put into a smart contract. After receiving the good or service, the buyer can unlock the funds for the seller. In the event of a dispute, Kleros can be used for the smart contract to reimburse the buyer or pay the seller. .

• Micro-allocation: decentralized platforms could pay for microtasks (in the manner of Amazon Mechanical Turk (1)). The tasks would be replicated if a task gets different answers, the task executors could admit their error, this would transfer a part of the security deposit to the executors who performed the task correctly. In case several task executors remain in their position, a dispute resolution process would occur and the executors of losing tasks would transfer part of their security deposit to the winners.

• Insurance: the insured pays a fee to the insurer to obtain compensation in the event of a particular event. The insurer will have to make a security deposit that could be common to multiple insureds (respecting the rules of risk management). In case the security deposit is linked to multiple insureds claiming more than the deposit, a dispute resolution process would also be needed to determine how those funds should be divided among the insured.

• Oracle: for a decentralized data feed used by smart contracts was one of the first cases of planned use of Ethereum (7). Everyone can deposit and send a response. If everyone gives the same answer, it is returned by 11Audits and the revisions will be made before implementing the code. But we can never guarantee 100% that there is no error (neither in the code nor in the incentives) somewhere.

This is the Kleros project team which has three co-founders: Dr. Federico Ast (CEO), Clement Leasege (CTO), Nicolas Wagner (Web3 Developer). This team consists of 9 members and 2 counselors.

Token

The Tokens have already been distributed in the market on MAY 15 - JULY 15, 2018. The token gives users the possibility to be selected as jurors, who should be interested in conserving PNK tokens due to the opportunity these tokens represent to receive fees and rewards for consistency in the arbitration of disputes.

The Pinakion Token (PNK) of the Platform - Ethereum of Type - ERC20 with a Min. Inversion - 0.1 ETH. Accepting - ETH and Distributed in ICO - 16% with a Token for sale of 16,000,000 for a Total of tokens: 1,000,000,000

The use of a native token offers several advantages that turn out to be key to minimize the risk of 51% of the risks associated with the use of an external cryptocurrency.