Kleros: The Conflict Resolution Protocol in Blockchain.

in crypto •  last year 
Every day the world trend is towards the world of technology and the total quality of its products and services, making the users more and more demanding in the goods and services they consume. Blockchain technology enters into this trend, which in recent years has seen great growth, so much so that it is expected that in the future the world economy will be managed by decentralized platforms. For this, more and more users join the platforms to use the tools they offer, where an agreement of terms and conditions of the products they sell is established, this could bring disputes between the parties involved. For this reason Kleros arises as an alternative to arbitrate disputes in all types of contracts.

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What is Kleros?

Kleros is a Ethereum decentralized platform, which through a system of qualified and objective juries can resolve all types of contracts protecting the interests of both parties.In other words, it is an autonomous third party that acts as arbitrator of all types of contracts.

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How does the Kleros mechanism work to resolve disputes?

Once the contract is established by the parties involved, they can establish the specifications with which they will be integrated with Kleros, such as: number of jurors, category of contract (subcourt) and outcomes. After assigning these specifications, both parties can rest assured that if at any time a dispute arises for the contract, it will be handled in an objective manner by qualified persons in the specified field.

Example of the structure established at the time of resolving the dispute.
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How to guarantee the objectivity of the jurors?

This is the most important part in the functioning of the platform since the jurors being people may have the tendency to be subjective and not make the right decision. The Kleros platform has an incentive system to avoid subjectivity and guarantee objectivity in the decisions of the jurors.

Incentive System of Kleros

This system means that in each dispute each jury will get good compensation for each resolved resolved, also encourages honesty in the decisions of each jurors since acting honestly will be rewarded with bonuses or tokens. Of the total votes of all the jurors, one that is not consistent with the majority of the group will lose the bonuses or tokens.

This system also allows to deduce good jurors of poor jurors based on the consistency of their votes. For example, if there are seven jurors with only two "A" and "B" result options, five chose the "A" option while only two chose "B", in this case most chose the "A"option that will result winner and will be considered that the two jurors who leaned for the "B" did not vote honestly, but this in a simple dispute could be coincidence, for this reason, if a juror is inconsistent in more than 100 cases this will be considered deficient and lose the tokens that will win the consistent jurors.

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In the image, Bob lost the dispute and pays the fees to the jurors, the two juries who voted incoherent with the group will lose the tokens that will be distributed to the jurors who acted coherently.

Applications

Kleros is a wide multifunctional platform with qualified people in numerous spaces, some of the cases in which they can intervene are:

Escrow.


The goods or services are vital and are in the day to day interacting between the user and the seller, generating endless disputes that often generate conflicts and are not resolved. With Kleros, the money can be settled in a smart contract to reimburse the buyer or be paid to the seller once the buyer has appropriated the good or service.

Micro tasking.


Decentralized platforms could pay for microtasks, Taskers would put a security deposit and send answers to microtasks.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.


Another of the spaces where numerous disputes can occur in the field of insurance, where a user pays an amount to an insurer to obtain compensation if an unexpected event occurs. If the event occurs and the insurer validates this event, the user will be compensated but if it can not be validated, a dispute will arise between the parties.

Oracle.


One party asks a question where everyone can deposit and send a response. If they all give the same answer, Oracle returns them. If there are several answers, there will be a dispute to solve. When the dispute is resolved, Oracle returns the response given by the resolution and the parties that put incorrect answers lose their deposits that are granted to honest senders.

Curated lists.


Cured lists can be white lists or blacklists. Parties can send items to the list by placing a security deposit. If no one disputes that the item belongs to the list for a sufficient period of time, the name is added and the deposit is refunded. If some parties challenge by depositing a security deposit, a dispute resolution process occurs. If it is considered that it belongs to the list it is included and the sender obtains the deposits of the parties, otherwise they will be delivered to the parties in dispute.

Social networks.


This field in recent years has had a great boom, so much so that today is a fundamental part in the life of all people and is an essential instruct in modern communication. The users as well as the platforms establish terms and conditions where often these can be violated generating disputes. With Kleros The parties can report violations of the network's policies and deposit a security deposit. If the violation is questioned, a dispute resolution process occurs. If it is ruled that no violation occurred, the reporter loses his security deposit to the accused party.

Conclusion

The contracts play a fundamental role in the day to day of all people and also in the space of the Blockchain, Kleros is the best platform to be able to resolve disputes that may arise in a decentralized, objective and equitable manner, both for large Corporations that handle a large number of disputes where sometimes certain disputes are the product of users who want to take advantage, with Kleros they will find a transparent and objective way to resolve it. It also provides a second and reliable alternative for small businesses and users when establishing disputes with large companies, which in other platforms, could tip the decision in their favor, with Kleros, users can have a fair and objective dispute system and Small businesses can resolve disputes that do not involve large amounts of money.
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If you are interested in knowing more about this platform, click here: https://kleros.io/

Thanks to @originalworks for this initiative, if you want to participate enter here: https://steemit.com/crypto/@originalworks/940-steem-sponsored-writing-contest-kleros

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