KLEROS, The Blockchain Dispute Resolution Layer. Life isn't fair but KLEROS is.

in #contest6 years ago (edited)

"Who controls the courts, controls the state." Aristotle.

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It is a utopia to think that everyone will agree, it is illogical to think that, in fact those that make us complete and what makes the world turn, are the differences, imagine a world in which we all agree, in the that no one would argue a different point of view, it would simply be impossible.Since the beginning of time, disputes have been conceived in the day to day of the planet, from the greatest thing, to the smallest there may be a disagreement with two or more parties involved. In this way the resolution of disputes became a necessity, since the time of ancient Greece is looking for ways to create judgments to resolve the problems of disagreement, it is worth noting that obviously his selection of juries was obviously quite rudimentary, basically anyone could be a jury, since any person simply showed up on the day of the trial, people should only insert their Pinakion (this was the identity document of the time) then the official in charge of the trial launched two dice, one white and one black, these they threw themselves from one side of the Kleroterion, which was an old draw machine, there if the person who fell a black die was going to his house and if he touched a white one he stayed as a jury. In this way everything was random.
It is important to take into account that although the Greeks took the first step of the judicial system, it has advanced a lot since then, laws have been developed and there are specialized courts in different types of cases.
Currently there is an accelerated growth of digitization and globalization, which is why digital transactions are presented more frequently.
Nowadays there are more and more disputes and judicial trubunals face some challenges, that is why we are looking for a well-functioning transparent system to reduce the burden of the courts and to guarantee a fair result.

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Challenges current justice

The disputes are in any part of the interactions of the daily life, at present there is too much digitalization and virtual transactions, of course not all these transactions satisfy all the parties involved. Courts and trunks do not cover all the fields in which the differences of parties may be involved, therefore many of these cases simply qualify as a bad time and a loss for the affected party, since there is not much to do out there .

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Due to the large number of purchases and virtual transactions according to Katsh and Rabinovich-Einy 2017, in their study of digital justice, from 3% to 5% end in disputes as the result of the transaction was not satisfactory for one of the parties, worth mentioning that these data represent more than 700 million disputes in 2015 alone, a high and alarming number, although it is more worrying to think that most were not resolved due to lack of, "a relevant judicial system", that happens every day in the internet, many people are affected and dissatisfied and only touch the page for the fact of not being able to reach a fair solution.

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Kleros, a fairer digital world.

If we go back 25 centuries, the judicial system of the Greeks was based on a random selection of juries, which gave a guarantee of certain security and justice, this is done by a machine called "Kleroterion" or "Kleros", from there comes the name of this platform. In ancient Greece the trials are ruled by 3 basic grounds:

  1. The jury should be voluntary
  2. The jury was to be paid
  3. The selection of juries had to be done by lot (Kleroterion or Kleros)

Due to the failure of the judicial systems and the fact that they can not cover all existing dispute fields, Kleros has resumed the foundations of the Greek justice, improving them with the current tools to create a secure and justly guaranteed system of disputes, in the that both parties are satisfied.

Kleros is a decentralized application built on top of Ethereum that works as a decentralized third party to arbitrate disputes in every kind of contract, from very simple to highly complex ones. It relies on game theoretic incentives to have jurors rule cases correctly. The result is a dispute resolution system that renders ultimate judgments in a fast, inexpensive, reliable and decentralized way.

Source, whitepaper page 1

In daily life it is necessary to be at the forefront of disputes all the time, because in a normal world there are disagreements, that is why Kleros presents a secure and decentralized platform that offers the opportunity to generate intelligent contracts to ensure a satisfactory result for both parties. and all this is possible from a panel of judges specialized in the subject, that is why the result has a high degree of confidence.

Kleros is a platform that connects users who need help in a judicial dispute with experts in each topic. For its part Kleros works with a blockchain technology that makes the system safer and faster.

This platform came to answer the problems of disputes of a high range of issues and thus help people's safety and the fulfillment of fairer services.

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How does Kleros work?

Kleros presents four fundamental stages to reach a satisfactory solution of a dispute:

First stage, Contract.

To start with the right foot and in a transparent manner, the first step is to create an intelligent contract that stipulates each relevant aspect of the case, in fact this is the beginning of everything and it is where the sub-court will choose the dispute. , depending on the topic of the case to be treated, this being the aspect that leads to the result of the problem.

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Source, whitepaper page 3

In the image you can see the different sub-courts for the resolution of cases, so that the person chooses his section of interest to start the process, this will be taken by the correct panel of experts so that after the process is finished the decision taken will be Professional and reliable.
It is worth noting that each sub-court has a value of fees, as a common lawyer or a common mediator is fair that is a payment for services, these fees vary depending on the complexity of the case and if there are many or few juries for the resolution of the same, in addition the payment of these can by a single part involved, by both in equal parts or by an insurance mechanism.

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This is an example of paying equal fees

Second stage. Dispute

It is time to send all the relevant information to Kleros in a safe and private way. The information sent is very important since the jurors will take the necessary evidence to give their final verdict.

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Third stage Selection of juries

Already in the middle of the process, comes the stage of selection of the members in charge of the solution of the dispute in question, this point is based on two conditions founded by the Greeks 25 centuries ago: autopostulación of candidates and lottery. The juries do not apply in specific cases, they voluntarily apply in the sub-court for which they are classified, from there a lottery in which a case is randomly assigned to the jury. The selection of juries goes hand in hand with the number of tokens that he activates, because to be a jury the user must activate a Pinakion, the more active the more chances of being selected as a jury in his sub-court. The fact that this is a raffle and that users can not be nominated for specific cases makes it completely resistant to attacks and bribes. It is very important to mention that the Pinakion are frozen until a sentence has been issued.

Analysis: immediately after the juries have been selected, they have access to the evidence and in this way the analysis process begins, it is important to emphasize that the time granted to analyze the evidence, as well as the parameters for the decision-making procedure it is directly proportional to the sub-section where the subject is and its complexity.
Before finalizing the process the urados must emit justified votes, the winning solution will be the one that has the majority of the votes, that is to say the average between the juries.

For now Kleros is only responsible for simple disputes with two parties involved and two outcome options, as the platform is strengthened its horizons will be expanded.

Fourth stage. Enforcement

Already at the end of the chain is the expected objective, the decision, ie the decision taken by the court to end the case, this decision is presented in an intelligent contract to show each point of the process that led to the final sentence .

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The image shows an example of the dispute and how Kleros works until a final solution is reached.

Having finished the sentencing process, a situation can arise that extends the dispute, this happens when one of the parties involved is not satisfied with the final decision and therefore it resorts to appeal.

Appeal: The appeals process occurs when one of the parties is not satisfied and this can be done multiple times, as long as the appealing party bears the expenses of the dispute, and it is worth noting that each appeal will have twice as many number of juries of the previous dispute plus one to arrive at a better solution that satisfies all the parties.
Kleros offers a transparent and safe process where you can reach the solution of any type of dispute.

What are some types of disputes that can be resolved through Kleros?

Kleros is a platform that is useful for anyone and therefore the range of topics that can be treated in disputes is too broad, within the problems to be solved there is a universe of possibilities, since in any field differences of opinions can be given , that is why Kleros can give a reliable answer for its sub-court system that indicates the case at random to the most suitable juries for the topic to be treated.
It is important to mention that some of these cases will begin to work immediately while others in a longer period of time

Some of the categories that this multiproposito platform can include are:

Arbitration: It is the most common and simple field since it is simply that the parties involved are in different continents for example and it turns out that something happens that leaves one party unsatisfied, with kleros this part can get an equitable solution.
On the other hand it is worth mentioning that Kleros contributes to the independent market since it provides a security of intelligent contracts with which the person can feel more secure to hire a person from a country with weak legal frameworks.

Social Media: In the digital age the use of social networks and the abuse of them is becoming more widespread, but it is not very common in all countries to go to trial for a comment that breaks the rules of the platform or something that bothers one of the users, that is why Kleros can contribute to the solution of this type of cases and reach a fair agreement.

Gaming: The community of online players is increasingly broad and therefore must go to platforms that ensure fair play, that is why they can turn to Kleros as a court that ensures a fair and safe game.

Crowdfunding: This is about collective financing, and as human beings it is normal that we feel insecure about granting money before having the final results of the product in question. To have greater security, the parties involved can resort to Kleros and in fact the funds would be paralyzed by this platform if a breach of the agreement is made.

E-Commerce: Currently, online commerce is a very common way for people to make their purchases, and it is even more common that the buyer does not feel satisfied with the product purchased since in his defense he does not meet the promised characteristics, that is where he enters in game Kleros, in this way gathering the necessary evidence could give a ruling in favor of any of the parties involved.

Oracles: It is nothing more than a decentralized data used by the platform for intelligent comrades, in turn it connects the outside world with the blockchain technology, to better understand a serious basic example "Is it raining in London today?"

According to the company's white paper, page 15-16 shows other examples Click here

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Common judgments VS Kleros

With the accelerated globalization and the constant growth of the digital era, the topics in which disputes can arise have been expanded, the traditional state courts can not cover each of the areas of the planet. On the other hand those affected by the lack of field in that matter leave aside the problem, they try to solve it on their own without any legal aspect and that is how the asusnto is left many times with an unsatisfied part or an unfinished job. That only mentioning small cases, but there are also losses of considerable amounts of money. The courts are not suitable for each dispute, which is why an option that is absolutely viable is to turn to Kleros to reach an expected result.

How can Kleros help reduce the costs associated with dispute resolution?

Time and money, is something that nobody wants to lose, when you enter into a legal dispute, for whatever reason, the factors of time and money are predominant for the parties involved. Going to court represents payment of fees, paperwork, among several things that generate expenses and inconvenience to the parties involved, it is more regrettable even when it is a small demand, for a small amount of money, it is not worth it, then the fact to know that there will be more losses than gains in the process make the plaintiff just throw in the towel and forget the subject.
It is important to say that although there are independent platforms that simply do not comply with a reliable resolution protocol, that is why they fail in the attempt.

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But the good news is that there is now Kleros with this platform time and money are the least affected, as it presents a fast, safe and without moving your home dispute opportunity, all digitized and with experts that will make the right decision, and if for some reason any of the parties does not finish satisfied with the result, they can appeal and it is ready, so it has everything from a normal court but improved by several levels, offering the opportunity to pay shared fees between both parties, with lower costs but with the quality that a professional jury would have.

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The business world

The world of business is very broad, there are many areas and infinite ranges of business, which leads to many disputes, both digital and tangible facts. On the other hand it is increasingly insecure to conduct a business at this time, there are many virtual attacks and many people without work ethic, from there derive thefts and unfinished products or works.
In the digital age, many of the transactions are carried out via the Internet, some of them only with verbal agreements by telephone or emails, which does not guarantee anything but mutual trust. There is a high rate of business that becomes fraud or leave one of the parties dissatisfied, what happens when this situation arises? sometimes they go to trial and lose a lot of time in the process, and many other times they just let the moment pass so as not to get into tedious legal disputes. For those dealers and affected people there is now a decentralized platform, Kleros that offers its services to carry out legal disputes of any kind in less time and much more comfortable.

How can this benefit small businesses?

Small traders do not have the level of reputation that others may have, that is why they try to work a good way, but obviously it is not a perfect world and we can not put all our trust, time and money in a person we do not know and there are no references of reputation marked, this leaves an incognita for the contractor, and leaves the small merchant wanting to undertake. With Kleros the problem is solved for both parties, because this platform gives the opportunity to generate intelligent contracts in which the interests of the parties involved are agreed and protected, that is why Kleros gives you that assurance that there will be no losses for the person who hires and the small entrepreneur will consequently have a helping hand that would elevate him in reputation in case of fulfilling his service properly, it is a win-win situation, all this is possible by the arbiraje for small merchants, in which smart contracts apply until the work is completed satisfactorily, even when this small merchant is across the continent with Kleros there is ample security for both parties.

How can Kleros benefit large corporations who deal with many disputes (think eBay, Etsy, Amazon etc.)?

Currently it is very common to buy online, there are many large and recognized pages that offer their sales services, shipping, among other things, the seller offers the description of the product and photos of it, many times the seller has a reputation or not, but this is not important because the buyer may have problems with the product, it may not meet the expectations generated by the description and this is most common on the internet, so large companies like Amazon or eBay have that deal with lots of daily claims for products that do not satisfy their customers, your team is already busy enough to enter that field, in addition one of the parties will not be happy with a quick response and without arguments. Klerosoffers large corporations of this type the advantage of channeling those large amounts of claims they obtain daily, so experts in the field can perfectly handle the information they have and thus provide the best solution for those affected, from a transparent way and presented by an intelligent contract, then it means that Kleros is not only a friendly hand for any citizen, for small businesses, but also provides effective solutions for consolidated companies such as those mentioned above.

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Judges and incentives technical system.

Token Pinakion (PNK):

At the time of ancient Greece, the identification document of the Greeks was called "Pinakion", now this name has been adopted for the Kleros token, since as in Athens 25 centuries ago, users must enter the Pinakion to be selected as judges in the draw. The more Pinakion enters the system the more opportunity to be selected they have.

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Pinakion play two key functions in Kleros design. First, they protect the system against the sybil attack. If jurors were simply drawn randomly,a malicious party could create a high number of addresses to be drawn a high number of times in each dispute. By being drawn more times than all honest jurors, the malicious party would control the system. Second, pinakion provides jurors the incentive to vote honestly4 by making incoherent jurors pay part of their deposit to coherent ones.

Source, whitepaper page 4

Jurors

Returning to the foundations of ancient Greece, the juries are chosen at random by a draw, and the probability of being selected is directly proportional to the amount of Tokens Pinakion has deposited.
It is necessary to generate an impossible protocol to attack, that is why through four specific mechanisms channeled by a proof-of-work random numbers are generated to avoid attacks and that everything is safe and transparent. These 4 basics are:

  • Initialization
  • Computing the master random value
  • Getting the results on the blockchain
  • Getting all random values

With the gear of these 4 points is generated as a protection for any attack within the system, therefore there can be malicious juries making other victims to obtain inventive fees without performing a real job.

Votes

Thomas Schelling, expert in game theory and Nobel Prize in Economics 2005.
The Schelling Point, this is a test that shows that if a person or a group of people know the decision that someone made or the answer he gave, his mind will be influenced by it. For its part this test developed the Schellingcoin, this incentive is given to the juries depending on the coherence of their answers.

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After having analyzed the evidence and everything concerning the case, the juries are given the task of voting for one of the options. The juries cast their vote with two accompanying factors: Salt and Adresss, salt is a randomly generated value locally, while the adress is simply the address of etherium belonging to the jury. All this is the protocol required to make the vote of each personalized jury. The voting process is quite secret for other juries, here comes the case of Schelling Point, because the vote is not shown so as not to mentalize the other juries. It is worth noting that:

If a juror wants to reveal its vote to another party, it has two options:
1.Reveal only its vote. The party won’t have any proof that it effectively voted that way. The juror could lie about it and the other party has no way to verify.
2.Reveal its vote and its commitment. The party would have the proof of its vote, but the party
would also be able to steal the pinakions of this juror.

How does Kleros ensure fairness through its incentivization system?

Like any job, juries must receive their payments, in this case they are fees for the work done, in addition to this they are also given incentives which are based on the Schellingcoin protocol, because in this way the jury is given the impulse to have more coherent votes, since it is paid that way, to the one that has coherent votes and has realized and not to the one that made an incoherent vote probably to only charge his faster fees.

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After arriving at a final decision the introduced Pinakion are thawed and the redistribution of tokens process begins, this is done with the protocol mentioned above of the focal point of Thomas Schelling, since if all had access to the same evidence and the juries are If they fit the chosen category, they should have reached a similar verdict, in this way the incentives are distributed by coherent and non-coherent juries.

On the other hand, the income or payment for the juries comes from two sources: The fees paid for their time invested, which is equal to all and the redistribution of Pinakion from the incoherent to the coherent juries.

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Source, whitepaper page 9

In any job is very useful, to improve production, the system of incentives to employees, that is why the implementation by Kleros for their juries, thus ensuring a quality work with satisactorios results.

Token sale

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Since the range of application of Kleros is quite broad here some cases of use:

Use-Case 1.

Vanessa is a regular buyer of ebay, one day she saw a table that she liked a lot, the seller gave very good specifications of the product as well as photos. Vanessa bought the product and sent the money to the seller, he sent the product and everything right until the moment she opened the box where the table was, this was a version in very poor condition of the photo, therefore she as a buyer was upset and tried to contact the seller. I did not pay much attention to her because she had her money and she was fine with that. Vanessa without knowing what to do called a friend who was very involved in online business, this way he mentioned the existence and operation of Kleros, it seemed the perfect option for the solution of this case. Vanessa entered the platform and chose her sub-court, in this way she was contacted by one of the juries chosen by the draw, she gave her evidence and in the same way the accused party came to defend herself. They stipulated the way of payment of fees as equal parts and equally made the contract intelgente. After the process of the juries specialized in the field they specified that the money should be returned to the buyer since she was the victim of a misleading offer, therefore the total amount would be returned to her and she would return the table to the seller, in addition the latter for the inconvenience caused would pay the total shipping of the product, accept his fault, leaving both parties satisfied

Use- case 2.

Sam has an artisanal cosmetics company in Ireland, which is growing fast enough so he wants to create his website and thus expand to new buyers, that is why he searches online for a web designer that is not so expensive, he finds one called Carlos who resides in a part of a small town in Ecuador, but it seems according to his portfolio, which is one of the best in the field and since he is an entrepreneur and is starting his business, he does not charge a very high price. On the other hand, Sam does not feel so sure about hiring him even though he loves his job because he does not have a high reputation score since he is starting out in the business. To solve your concerns when you hire him, Sam turns to Kleros to generate an intelligent contract where both parties are satisfied, giving him the total peace of mind of hiring a small business owner like Carlos.

Use-case 3.

Andrew has Richard long ago as friends in a well-known social network, although both are adults repeatedly Richard has been disrespectful with comments or pictures on the wall of Andrew, the latter tired of the situation contact Richard and told him that he would take actions legal for how annoying it was, because it violates the rules of the website, this in turn only defended by saying that the internet was a free place and could hang what I wanted in addition to making him laugh thinking the idea of ​​going to a judged by comments on a social network. That got Andrew thinking, I consulted with his wife and she told him about an article that he had read about Kleros , Andrew entered the company's website and in this way he knew what the whole process was about and he thought the platform was exact to stop Richard once and for all legally. He requested a dispute, contacted the other party involved, a sub-section specializing in social networks was chosen, the jury accepted the evidence and after a while gave the verdict that Richard should stop any comment of any kind towards Andrew, in fact any interaction is suspended, it is not necessary to eliminate his friendship in the social network but if he returns to reoffend he must give Andrew an indemnity and should completely get away from him. Both parties agreed, the contracts were sent and everything was accepted.

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If you want to know more about kleros check my video

A short video of the process

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Conclusion

The digital era is constantly growing, each day is evolving and taking new directions, it is as well as it is increasingly normal to observe virtual transactions, it is something from day to day, on the other hand the disputes also take place because in a perfect world there are many disagreements, that makes us different and unique. For its part, traditional legal systems do not cover all the areas of the present, there are many disputes that can not be brought to court, thus Kleros appears to be a decentralized platform that finally gives the opportunity to apply a fair system to a dispute in any field and thus arrive at a legal and satisfactory solution, Kleros is the best option for any user or corporation, life is not fair but Kleros is.

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Source

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The team

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More information

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

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