Kleros and how it will change the way individuals and businesses deal with disputes?

"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."

Kleros is an organization that works as an arbitrator who gives a verdict to a dispute in all types of contracts from the simplest to the most complex. It is responsible for collecting evidence, selection of jurors as this is a tool to discover the truth about events, follow a procedure where the evidence is used and to generate a decision as honest as possible in a secure and inexpensive way and fulfilling the intelligent contract that is where the agreements between the parties were made.

It is important to highlight that Kleros through intelligent contracts can save the funds until the selected jury members issue a resolution protecting both parties in case a contract is breached.

In the following image the operation procedure is shown when using the Kleros platform:

Below is a schematic of a case before and after the dispute:

Before the dispute:

After the dispute: "Decision"

juicio final.jpg

The importance of the creation of Kleros for individuals and as small companies are created, a greater number of problems arise where their cases of disputes can be solved through the new and decentralized platform since it can be quick and instantaneously give solution to the conflict by what would save time and money. Currently, arbitration in a traditional way in any court takes a long time and in the case of any medium or large company represents time and loss of income to the company so if we refer to the small ones where their profits are few and in the case where it is disputed for small amounts of money it is better to give lost money for the high cost involved in hiring lawyers to give solution to the dispute so that kleros in an excellent option.

Use Cases

Below are some areas in applicable cases of use that can resolve the disputes with Kleros:

1.) Arbitration:

Contract of unsatisfactory services for one of the parties.

2.) Social Media:

Unfortunate comments and outside the clauses in social networks.

3.) Gaming:

Creation of qualified court to arbitrate between disputes and the creation of fair platforms where to play.

4.) Crowdfunding:

The products do not materialize even though they are financed.

5.) E-Commerce:

Online purchases unsatisfactory for the buyer.

6.) Oracles:

Real-world information is used in decisions.

Token

The token generated in the platform is Pinakion (PNK), it is an incentive for users who act as juries in the dispute processes and who receive their fees and perform honest and quality work. Jurors who act dishonestly the coins will be distributed among fair and honest juries. The incentives design underlying Kleros is based on a similar mechanism to Schelling Coin, slightly modi ed in order to answer to a number of speci c challenges scaling, subjectivity and privacy to make agents engage in adequate behavior.

Arbitration fees

Each arbitration jury will be paid a fee determined by the sub-court where the dispute is resolved. The intelligent contract will determine which part will pay the fee. A clear example is who pays who loses the case but both parties deposit the corresponding fee that will be reimbursed to who favors the decision once the dispute is resolved. In the cases of appeal both pay the arbitration fees and the appellants deposit an additional portion corresponding to the appeal fees that will be granted to the winning party of the dispute as compensation for the loss of time.