THE KLEROS REVOLUTION SYSTEM IN THE BUSINESS WORLD

celineaugustinee (53)in #blockchain • 6 years ago (edited)

In the business world today, especially when it comes to rendering of goods and services and getting paid for services rendered, people have been cheated and taken advantage of by clients or customers who do not keep to words of paying for those services when the have been completed. They either delay payments or not pay at all when a job or service has been diligently and efficiently rendered, causing pain and regrets to they render/renders of those services which could further lead to discoragement in continuing with his business because funds to sustain such a business is not forth coming in.

There are also cases of the renders of labor not meeting up to the expectations of they client by not doing the actual thing they are paid for or not completing a service at the agreed date. A job which might have been agreed to be completed in weeks begin to get to months.This can lead to unhealthy disputes between him and the client. They client, might want to opt for a refund to contract a more serious person to do the job which might leave him in total loss especially when they initial laborer, refuses to refund the client, because he might have spent the funds on other things.

All this disagreements can lead to unhealthy arguments, instigation to take unhealthy decisions and waste of resources if either the render of the service or customer decides to take that matter to court. This could lead to unnecessary spending of funds which might be a waste at the end of the day for the loosing party.

At times, a render of service might find himself in a situation of not just doing his job perfectly well but delivering at the right time, but ends up getting maltreated by they one who contracted him. Their client might be so influencial that they might not afford what it takes to arrest them or take them to court when they refuse to keep to their own side of the agreement which might end up in letting the case die down, leaving them in total loss.

This is where Kleros
comes in to change the way people, be it renders of services or clients treat their jobs, because, they are aware that they won't be paid if they job is not properly done and ensures payments is done at the right time when a job is completed respectively.

ABOUT THE KLEROS PLATFORM

The kleros platform do not only serve as an intermediary between renders of services and customers, but ensures a fast, secured and affordable arbitration fee for nearly everything.

Kleros is a decentralized service which has been created to bridge the gap between renders of labor and receivers of labor. Not just that, but to ensure anyone who deserves his wages or refund is given what's due to them.
Here, when a render of labor is been contracted to do a job, both him and his contractor, enters into an agreement on the platform. The contractor is expected to make full payments of funds for the service he requested for. That fund is is deposited and locked in a smart contract which would be released to either the render of service if the contractor is satisfied with the job or refunded back to the contractor, if he isn't satisfied with the job after going through a panel of jurors who will give their final verdict on who is in the right and wrong. At the end of the judgement, they winner will be settled with either a payment or refund.

For example:

Flora contracted a fashion designer to sew her wedding dress and that of her bridals train. She came on the agreed date which is just three days to her wedding to collect the outfits only to realize the designer hasn't started working on them yet. Flora is in a state of devastation and asked for the 70% refund which she deposited but designer tells her "no refund after payment." This got her really angry and confused on what action to take because she needed to fit the gown and any adjustments there is to make before the deal day. At this point, she's confused on whether to order for her arrest to get back her deposit but on a second thought, she knew it might take a long time for the dispute to be resolved. The other thought is to collect her materials and start looking for another designer which will waste more time because measurements would have to be taken all over again and she collecting the materials means losing deposited funds already paid.

But with Kleros, Flora will report the case on the kleros platform, and ask for a refund which will be done after evidences have been uploaded on the platform to prove the designer didn't keep to the agreement. With this proves, Flora will get her refund in full without having to fight or arrest anyone.

KLEROS RESOLUTION MECHANISM

The resolution mechanism is made up of subcourt defined in categories:
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In the process of creating a contract/agreement, the parties involved would select the details of their Kleros integration. Here, they are allowed to select the;

• Number of jurors
• The category of contract (subcourt)
• Outcomes

By choosing the most relevant subcourt, they are rest assured that knowledgeable, capable and competent hands are there to deal with any dispute when the need arises.
In case a dispute arise, they jurors will be presented with a number of possible outcomes which they would choose from and ensure their choices are stipulated beforehand.

KLEROS EXPERIMENT

You can now watch a pilot experiment launched by Kleros to showcase how Kleros works.

KLEROS INCENTIVE SYSTEM

This platform ensures everyone is been considered. That is, the cost of getting jurors will be affordable and considerate. Also, the jurors that rules on any case is paid or given an incentive. This incentive is given so that the juror would be honest in their judgements because, a jurors who did not join others with the highest vote will not be paid after the case. So, in other not to loose completely, he is compensated with an incentive.

The Kleros platform ensures everyone is treated fairly, from the parties having the case, down to the jurors.
Meanwhile, a juror whose vote is not coherant with the group will loose some tokens to the coherant ones. A juror who is not always coherant with his votes is seen as a poor juror and might likely loose out completely.

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HOW POOR JUDGES/JURORS ARE DICTATED WHICH CAN LEAD TO LOSS OF TOKENS

Using this instance,
If we have seven jurors with outcome options X and Y. If we have six of them go for X and just one going for Y, the number with the highest vote wins i.e, X won and Y lost. But in this case we will not conclude they juror that went for Y is a poor juror yet until this occurs severally or repeatedly in let's say, 50 other cases; then, we can conclude that juror is a poor judge and would lose tokens.

THE DOGES TRIAL
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This experiments of the Doge trial gives a fun and comprehensive instance of a potential use-case

HOW KLEROS WOULD CHANGE THE WAY INDIVIDUALS AND BUSINESSES DEAL WITH DISPUTES

Disagreements is inevitable in the business world. Individuals who render one form of service or the other encounter one form of challenge or the other when it comes to getting paid for services rendered or delayed payments which is not good for business growth. Most freelancers have been treated unfairly by their clients which most at times do not have what it takes to file a case against them, leaving such clients undealt with and a waste of time and resources on their own part. Such clients can even threaten to deal with them if they decide to speak out/expose them. Due to the fear of been punished or bullied by them, they forget about everything.

Also, most businesses have shut down due to inhumane customers who have refused to pay for goods and services. But all this disputes and disagreements is put to a hault with Kleros which will ensure both parties, which includes, both the renders of services and customers are treated fairly and are satisfied with either their pay or services rendered. Here, no one is cheated and if eventually any party isn't satisfied, he can file a case against the other for a reasonable amount with knowledgeable and competent jurors ruling the case.

By individuals and businesses using this platform, it will ensure their business longevity and would change the way the deal with disputes of being verbally insultive or physically violent to get what is due to them. It will also safe them the time and funds to take a defaulter to court which could end up in spending more than expected. The Kleros system says relax, while we handle the matter for you.

THE TYPES OF DISPUTES THAT CAN BE RESOLVED USING THE KLEROS PLATFORM

1) PRODUCT DISSATISFACTION DISPUTE

a) WHEN AN INCORRECT PRODUCT OR SIZE IS DELIVERED TO A CLIENT:

Businesses have gone global that you don't have to go to a physical store to make a purchase but through a click on your phone, you can make several purchases at the comfort of your home. But so many times, dispute have arised when what was ordered for is not actually what is delivered. It's either the color of product is not it or it wasn't the actual size of a shoe or dress you ordered for which might lead to asking for a refund or a total change of product. When a refund isn't forth coming, it can result to serious problems which with Kleros, funds are kept in smart contract and only released when client is satisfied with products. But when he isn't, he can easily ask for a refund which won't be difficult getting back.

b) A CUSTOMER MIGHT WANT A CHANGES OF PRODUCT WHEN WHAT WAS DELIVERED DID NOT MEET THEIR EXPECTATIONS

Here, a dispute of not being satisfied with a delivery can be resolved with Kleros. The way most companies exaggerates the functionality of their products is becoming alarming. For example, one might order for a tea or beverage that promises to loose weight in some days which ends up not happening the way they expected and might want a refund. With Kleros, a customer can file a case against such organization at an affordable fee.

2) DISPUTES OF LOAN

The Kleros system can also be used to help in resolving issues surrounding lending and returning of loans. Here a lender can borrow an amount with an agreed date of payment between him and the borrower and when the time for paying back comes and the borrower doesn't pay, the lender can file a case against him.

HOW KLEROS WOULD HELP REDUCE THE COST ASSOCIATED WITH DISPUTE RESOLUTION AND HOW IT WILL BENEFIT SMALL BUSINESSES

Disagreements between clients and small businesses owners can instigate them to take unfavorable decisions which might affect them financially in a long run. Imagine spending a fortune for a court case which you don't know your fate and which can be influenced especially when you are taking an influencial person to court. Kleros will help reduce the costs associated with dispute resolution to a large extent because it ensures one gets paid for goods and services they rendered. It also provides competent jurors who are able to judge your cases at a less and affordable fee than going through the process of getting a lawyer and probably wait for adjournments which can be time and funds consuming.

HOW KLEROS WILL BENEFIT LARGE CORPORATIONS WHO DEAL WITH DISPUTES

So many Businesses have been faced with one problem or the other from customers overtime. Taking Jumia which is an e-commerce company in Nigeria, they have been faced with so many problems from their customers in the time past and now. But with the Kleros system, all those issues can be resolved to a large extent. Problems faced by large corporations like Amazon, eBay, etsy, jumia and other e-commerce organizations include:

•WARDROBING:
This is a specific type of customer fraud which has to do with a customer ordering for a product or item which he doesn't really want to purchase. His intention is to order for such product only to return it after that purpose of ordering has been achieved.

For example, Mr Emmanuel ordered for a suit just to go for a date with a girl to showoff with the hope of returning such outfit after the date. Returning items usually leads to that organization loosing out completely because the customer might still request for a complete refund which is not good for the organization in question because their reputation is involved if nothing is done about the refund. How Kleros system would come in:
When Mr Emmanuel wants to make that same suit order, he makes a complete payment in the smart contract wallet which is locked in there until the suit is delivered to him and once he receives it, right there, he acknowledges on Kleros that he has received the suit in a good condition and he is satisfied with the product. After this, funds would be released to the company that delivered the warehouse to him; but if Mr Emmanuel isn't satisfied with the suit, he would have to give reasons why, which might bring in they jurors to judge the matter justly. With this, fraudulent customers would be afraid to cheat or venture into this, because, they are aware their money might never be refunded back to them if eventually, they loose the case which means loosing completely if they tried it. Thereby protecting organizations from such criminals.

•DELIBERATE FRAUD

This is a highly criminal activity adopted by customers. Cases of stolen credit and debit cards are on the increase. A customer can order for a product online only to pay with the stolen cards. His main aim is to get the money and not the product his ordering for. Now, when the goods arrives, he might look for some fault which is obviously unnecessary and ask for a refund of the cash which is what he wanted.

With Kleros, there is no refund if the product was delivered in good condition and it was exactly what the client ordered through the evidence that will be uploaded by the accused company. The company would be paid instead. This will help to curb the rate of theft in this present time and enable companies grow.

HOW KLEROS ENSURES FAIRNESS THROUGH ITS INCENTIVIZATION SYSTEM

The Pinakion Token(PNK)
The PNK ensures jurors are given incentives to enable them rule over a case honestly.
For a judge to be incorruptible, it is important he is given an incentive to encourage he is honest with his judgements. It ensures fairness by not leaving a judge who didn't win a case empty handed. So, whether a juror's party wins or loses, nobody would leave with an empty hand, compensation would be given to encourage them to do better in cases to come.

A Summary Of The Kleros Platform