1. Project Descriptions

1. 1 Abitrated Contract

Kleros is an opt-in court system. Smart Contracts must design Kleros as arbitrators. Users will participate when they choose how many judges and courts will decide their contract, in this case you will choose KLEROS as your mediator.

Example case 1:

A software developer will choose a court for software development, and insurance from the contract will choose a special type of court to deal with it. In the picture below it will show how cases of arborescence in court are chosen by users. The Kleros team is developing a number of standard contracts using kleros as a mechanism and resolution for all disputes.

Figure 1. Resolution Mechanism, Source

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Following example for Doges trial and how it's works

Figure 2. Doges on Trial Soource

1.2 Options For Jurors

The contract made will determine what choices are available to the jury to choose. Example: Bob will design a WEB and will get Reimburse Alice. But the job has an extension of time due to insufficient time given by the owner named Alice, and Alice hasn't been able to pay Pay Bob because of her work. in this case the dispute will be settled according to the following habits:

• Reimburse Alice transfers funds to Alice's address.
• Gives additional time to complete the site WEB to Bob, and the dispute will be terminated during the extension.
• Pay Bob transfers funds to Bob's address.

1.3 Privacy

Solving disputes may require parties to disclose special and personal information with jury members (KLEROS). To prevent outside observers from accessing this information, contract natural language (English or other) and the choice label for the selection of judges is not placed on the blockchain. Like information on when a contract is made, the creator submits a hash (contract text, list of choices, salt, etc).

Data will be sent by contract makers such as (contract text, list of choices, salt, etc) to each party using asymmetric encryption. In this way, the parties can verify that the hash sent in accordance with what is received by them. If there is a dispute, each party can disclose (contract text, list of choices, etc) to the jury who can verify the data they send. All of these steps are handled by the application user will run when using Kleros, and only the judge can open all data in the form of hash sent by the contract maker.

1.4 Drawing Jurors

1.4.1 Token System : The Pinakion

Every user has an economic interest in serving as a jury member in the kleros, they collect the arbitration fees each jury gets his job. The candidate will choose what token will be used as payment in this case called PINAKION (PNK). The jury is chosen to resolve a dispute. For the jury's own income, it will also affect the Amount of Deposit Token saved. The greater the value of the stored token, the greater the probability of being withdrawn as a jury member to resolve the dispute. Whereas for the jury who did not store the PNK Token, did not have the opportunity to be drawn, and this was done to prevent the inactive jury from being chosen.

Pinakion (PNK) also plays two main functions in Kleros design.

• They protect the system against Sybil's attacks. If the jury is only taken randomly, the evil party can make some false addresses in the settlement of the dispute, and this should be avoided because it will harm Kleros and Clients.

• Pinakion will provide incentives to honest judges by making uncoherent judges pay part of their deposit to a coherent one.

Figure 3. Sybil attack Source

1.4.2 Jury Selection

After the candidate has a certain court that is chosen by themselves and deposits a token, the final selection of judges is done randomly. The probability of being withdrawn as a jury member is proportional to the amount of the token deposit. Theoretically, a candidate can be withdrawn more than once for a particular dispute, but this has never happened. This means that the jury's income will be proportional to the number of votes he gets, and depends on the number of tokens he wins and loses as long as the tokens are redistributed.

Figure 4. Exp : Contract creation and arbitration selection Source

Here are some examples of illustrations for 6 token owners who register for disputes and they deposit 10,000 in total with the following distribution:

Figure 5. Exp : Token deposited and drawn jury member Source

1.4.3 Random Number Selection

This Random Number Selection is very important, this is to attract judges who need a process to create random numbers that are resistant to manipulation. Use a protocol to make numbers randomly so that both parties don't work. An attacker (sybil attack) can make a dispute between himself, he becomes a victim, and chooses his own jury to resolve the dispute. In this way he will get the distribution of Token Pinakion with the fake case he made. Random numbers like this password are generated adopted from the system on blockchain.

1.4.4 Votes

After assessing the evidence sent, the jury made their votes to one of the available options. They give up
hash (vote, salt, address). salt is a random value that is locally generated to add entropy in blockchain Proof-Of-Work, blockhash is impossible to predict correctly, and we can delete this step and
only use blockhash as seed. But 'ETH' has planned to switch to Proof-Of-Stake.

The judges must make a commitment, and after this is finished, the votes for them cannot be changed. But that is still not seen by other judges or to the parties. This prevents the vote of the jury from affecting votes against other judges. The jury can still state that they chose in a certain way, but they cannot give other judges
reason to think that what they say is true. This is an important feature for Schelling Points to arise. If the judges know the votes of other judges, they can vote as they vote on Schelling Points. The Kleros let any party be able to demonstrate the jury's commitment to the Kleros before the vote was closed.
If a judge wants to reveal his voice to another party, he has two options:

• Say only vote. The party will have no evidence that this party effectively voted in that way. The jury can be lies about it and the other party has't to verify.

• Expresses his voice and commitment. The party will have proof of vote, but the party will also be able to steal the pinion from this jury.

1.4.5 Arbitration Fees

Arbitration fees are used for jury compensation in doing their work and avoiding attackers from spamming the system, making disputes and withdrawing it requires arbitration fees. Each jury will be paid a fee determined by how much the value of the settlement is completed.

Example:

Parties who need services will deposit the same amount in the smart contract, but if one party fails or does not make a deposit, the court will decide to support the party who deposited the fee for arbitration. But if both parties make a deposit, the winning party will be replaced when the dispute is complete. If in this case both parties make an appeal, then both must deposit the arbitration fee. The applicant must also pay a fee in accordance with the party that wins in court. This is important to be done to prevent doing practices that can harm each party.

Figure 6. Arbitration Fees Source

1.5 Attack Resistance

There are 2 kinds of attacks on Kreos in this case:

• If a party or a group of parties collude to buy half of the token, it will control the result in the General Court and therefore can finally decide all results. This results in an uneven distribution of tokens. and sales of tokens will not be guaranteed. Moreover the fact that one party is able to buy all tokens at the current market price, and this party cannot buy the token at half the price. All of these token markets will be affected by supply and demand in the market.
• For bribery in this case the jury as the party involved, this will be detrimental. Bribery will reduce reputation even though the party who committed the dispute wins in court

1.6 Court Arborescence

When the user registers as a jury member, starts with the General Court and follows a particular subcourt according to their skills. Each subcourt has a number of special features regarding policy, and in each subcourt different costs and the number of tokens are different. The picture below shows an example of legal registration, and the jury's free to choose subcourt in accordance with the field they are pursuing.

Figure 7. Patch chosen by jurors in subcourt system Source

There is also a special subcourt available to choose vote delegates to certain subgroups, this is a kind of smart contract that implements a complete arbitration regulation.

Figure 8. Ilustration liquid vote Source

1.7 Governance Mechanism

When the Kleros protocol benefits from using a case, a new subcourt needs to be made. Changes in subcourt parameters and to complement the platform to the new version with additional features. and the one who makes this decision is the one who holds the liquid token. Token holders will have a number of votes according to the number of Pinakions they have. These token holders have the option to directly delegate votes or automatically to delegates they designate.

2. Applications

This system run by KLEROS can be applied in several case fields including:

Figure 9. Kleros use case Source

3. Road Map

Following is the roadmap that has been made by the KLEROS Team until 2019

Figure 10. Kleros Road Map Source

4. Token Supply

The Kleros in this decision decided to use a new method for the distribution of tokens submitted by Vitalik Buterin which is called the Interactive Coin Offering or ICO. Instead of making one big sale in one round because of most projects, sales will be done through several stages until the product milestones reach a critical point.

Figure 11. Token target supply Source

5. Management

You don't need to worry about this, because KLEROS has a very good management filled by great teams that will guarantee your privacy. They are great people who work according to security protocols in the cryptoeconomic system.

Figure 12. Management Team dan Advisors Source

6. Partner

Here are partners who have collaborated with Kleros for their future development.

Figure 13. Klreos partners Source

6. Conclusion

The emergence of a new digital economy that creates the labor market, capital and products are marketed in real terms. The system is run online with an Internet intermediary. Kleros are present in this economy as a decentralized court system that helps resolve disputes that occur within the economic market. Kleros who use game theory and blockchain in multi-arbitration protocols are able to support a large number of applications in e-commerce, finance, insurance, travel, international trade, consumer protection, intellectual property and many other academics. Cryptocurrency has helped millions of people to achieve financial feasibility for their lives. Kleros will help your problems such as BTC which brings a banking to people who don't have it, and Kleros help justice for you without justice.

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More Information About Kleros, Click link bellows :

• Kleros Website
• Kleros WhitePaper
• Kleros Medium
• Kleros YouTube
• Kleros Telegram
• Kleros Twitter
• Kleros Github
• Kleros Forums

That is my description of Kleros. Hopefully this could be a solution for your problem.

KLEROS2018

My Twitter link KLEROSTWITTER

Regards,

@khanza.aulia

Thank your for a Great Contest by @originalworks and sponsored by Kleros

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References :

Originalworks
Kleros.io