Kleros: Arbitration System on the Blockchain

chrislyr (62)in #blockchain • 6 years ago

Overview

Dispute had always been part of human history, and man have invented different methods.of arbitrating disputes throughout the ages. Most of the arbitration process we used are relatively peaceful and rarely do we use violence to arbitrate disputes.

Among the methods we invented, settling dispute through amicable conversation and court trials survived till this day. Often times, small disputes are often settled by having a heart to heat talk where both sides tries to resolve the dispute. But this method will not work on big and sensitive cases that often involves large amount of money or resources. In such a case, a court trial is often used.

Unfortunately, court trials though effective, are not perfect either, taking a lots of time and uses large amount of money to resolve which makes it literally a hassle. For this reason, we needed a faster, fairer, secure, and less expensive way to resolve dispute. And this is where Kleros comes in.

What is Kleros?

Kleros is a revolutionary way of resolving dispute. A decentralized platform that uses smart contracts and the blockchain technology to effectively resolve disputes. Compared to traditional and centralized way of resolving disputes, Kleros is much more effective, not to mention faster and definitely cheaper.

Aiming to change how mankind arbitrates dispute, Kleros employ techniques and technology to make arbitration hassle-free and convenient. With just a pc, laptop, or mobile phones, users can request arbitration from the platform to fairly resolve disputes.

The method that Kleros uses us especially catered to the information age we lived in. A method where to parties living in different part of the world could easily settle their differences.

source

Kleros Incentive System

Kleros uses jurors to arbitrate disputes. Even though Kleros takes only a small amount of fees when arbitrating disputes, it jurors are properly compensated. This is done to ensure that the jurors will do their work with diligence.

To compensate the jurors, Kleros have an incentive system where jurors are rewarded with certain amount of token based solely on their performance as jurors. So the better the performance and the more coherent a juror is, the better he is rewarded.

Speaking of which, Kleros takes the coherency of its jurors very seriously, and will reward the coherent juror more. While incoherent jurors are penalized and will have their tokens deducted instead.

In other words, Kleros is a performance-based platform, where the better one performed the more he or she will be rewarded or vice-versa.

Challenges that Kleros wanted to tackle

Traditional way of resolving disputes like a coury trial always requires the presence of two opposing parties. This is not much of a problem if they are both from the same country but is a headache-inducing problem if the parties involves lives in different parts of the world.

Due to all countries having their own set of laws and rules, forcing a citizen from one country to come and face trial in another is no easy task. The countries involved must come to an agreement before a trial can even be set. Hence, people running away from the law loves to migrate to another country.

But distance is of no issue to Kleros as a pc, laptop, or a mobile device with an internet connection is all that is needed to request an arbitration from Kleros. And once the arbitration is complete, Kleros will enforce the verdict according to the said country's law.

There is another awkward issue that most traditional court is incapable of arbitrating. To be more precise, it is an issue that could not be easily settled with a simple conversation nor is it an issue that justifies settling it in court, a dispute involving small amount of money. Yes, you read that right. Small amount of money.

Let's say for example, you ordered an item that cost about $200 online. Yet the item you purchased was not delivered for various reasons. Therefore, you decided to ask for a refund but the seller refuses give a refund. Worse yet, you notices that the reasons they gave sounded like an excuse to keep your money. In that situation, peaceful negotiation is already out of the question and the cost of a court trial does not justify the amount of money involved.

So will you just suck it up and accept the fact that you've lost that $200 for no reason? Of course not! But what can you do in that situation? This is one of the dilema that Kleros wanted to tackle, and yes, Kleros can easily resolve such issue.

The vague law concerning the internet makes it a haven for criminals and scammers, and without the proper channels, issues similar to above example will just be sweep away under the rag.

Kleros is not only useful in resolving small awkward cases, Kleros can also arbitrate in cases concerning internet giants like Google, Amazon, and such. For Kleros no case is too small or to big.