KLEROS:providing fast, secure and affordable arbitration for virtually everything.
KLEROS AND HOW IT WILL CHANGE THE WAY INDIVIDUALS AND BUSINESSES DEALS WITH DISPUTES!
What if you bought something and you didn't get what you requested for?. let's say the colour you requested for didn't conform, or the quality or the branding or other differences that might arise during transactions or contracts, what then?. Do you return it (that's if you can) or file a complaint ?. Let's say it's your fault for not giving the right description, or let's say it's the manufacturer's fault?.what then?, do you run to a law firm and hire a lawyer for your case, how much does the product cost self?. A $100?,$500?,or a $1000. How much does it cost to hire a lawyer these days?. A lot right?. What if i say you can get a court to arbitrate for you during any differences instead of adjudication and at a token amount, the one which settles your disputes with randomly chosen jurors, and passes verdict which are strictly adhered to and let's say you are not satisfied, you can appeal , just like a real court of appeal where you go when you are not satisfied with the judgement passed , just using tokens, yeah..tokens. That's what KLEROS is, they undertake the act of settling disputes that occur during transactions which is often inevitable. Looking at the way the world operates, with the advent of online transaction, most transactions conducted are sometimes from far locations. Some are even intra continental.
"If the blockchain promise comes to a reality, in a not so distant future, most goods, labor and capital will be allocated through decentralized global platforms."
Kleros is an Ethereum autonomous organization that operates as a decentralized third party to arbitrate disputes that arise as a result of differences during transactions. All activities are carried out automatically ranging from the selection of evidence to selection of jurors who will decide the motion to follow and provide a solution to the dispute. Kleros is a decentralized organization meaning , no upper body has the veto power to say no to any case decided, the juror's decision prevails over all issues.
WHAT ARE SOME TYPES OF DISPUTES THAT CAN BE RESOLVED THROUGH KELROS?
Depending on the area the dispute falls under, will determine the branch to be selected. A dispute relating to Housing, a housing court will be selected, the same goes for an issue relating to an automobile dispute, an automobile court will be selected including the number of jurors the parties wishes to use.
USE CASE; Mr Alsaldi is a building contractor,employed by Mr Kane, to build him a house and both agreed to a time length of 4 months in which Mr Kane stated that he wants to celebrate Christmas in his new house, meaning the contract was made by September. Mr paid his contractor #10,000 without bargaining. Mr Ansaldi couldn't live up to his promise as stated in the contract, though the work is half done. Haven registered the contract under kleros, they assigned the dispute to the judge and placed it under the right court house (Housing). The jurors then evaluate the issue based on the evidence provided , and the motion out forward ;
•Pay Mr Kane back in full.
•Mr Ansaldi to compensate Mr Kane for not meeting his promise.
•Return the while money to Mr Kane and he gives the contractor what he choses to based on the job done.
The jurors then dwell in the issue and vote on the right decision which will prevail
HOW CAN KELROS HELP REDUCE THE COST ASSOCIATED WITH DISPUTE RESOLUTION AND HOW IT BENEFITS VARIOUS BUSINESSES
Look at how much it costs to use adjudication to solve a dispute. The .post important factor here is ,how much does the contract worth? Before thinking of whether or not to use an open court. Kleros makes use of arbitration fee paid by parties that wants to settle dispute between themselves. This arbitration fee are sometimes used to decide who wins and who loses. This arbitration fee is given to jurors who participated in the dispute resolving as a means of compensating them after votes are casted and the majority vote's opinion is employed. Cost is greatly reduced as there'll be no need to hire a lawyer and pay a huge amount of money to him which could be equivalent to the amount the contract is worth. With kleros, low cost is ensured which is why it serves as a great benefit to most small business firm that can't afford to pay a hired lawyer each time a difference occur during contracts as well as big industries like amazon who have multiple complaints form customers fro. All over the globe. Such customers can't travel I've to Amazon's headquarter to lodge a complaint on a gift card worth just $200. That'll be ridiculous. Here, cost is reduced (transportation), no one needs to hire no layer and both the customer and Amazon resolve the dispute having placed the contract through kleros, then both parties get what they deserve after necessary information have been reviewed. This reduce the money to be spent on these issues.
HOW DOES KLEROS ENSURE FAIRNESS THROUGH ITS INCENTIVE SYSTEM
You must have been wondering what if the jurors lie, how do you know if one is telling the truth and the other is not?
Using the Schelling coin mechanism, this ensures that no juror will have a reason to lie or else he's ready to forfeit a certain part of his owned tokens. In short, YOU LIE,YOU LOSE, and vice versa. Using the Schelling coin mechanism as a basis, as stated, you can't lie, then how do you know someone's telling the truth?. The way the juror works is this, a juror can't view another jurors opinion or vote. Whatever one of the jurors thinks is best done can't be viewed by other jurors. The majority vote cast then prevails. What then happens to those whose vote falls under the minority part. They lose some of their points for providing the wrong answer. For example, Did Hillary Clinton contested for US president ?, placed under 7 jurors , and 5 voted yes, she did while the other 2 voted she did not. The other 2 have been considered to have voted a lie and therefore will lose some of their token and this will be given to the jurors who voted right after falling under the majority vote alongside the arbitration fee paid when two parties wants to resolve their differences. This is a fair system and as I said earlier, With the incentive method, you lie you lose.
Using the Arbitration fee;
This is the fee paid by parities to solve their dispute. When asked to pay this fee , a certain rate is requested for and any party who falls short to pay will be considered to have lost and this won't even get to the court at all(trial). Therefore the party that adhered to the required price will be pronounced the winner and payment will be made instantly as they make use of smart contracts that ensures instant refund.
#2. The appellant also has to deposit an extra stake proportional to the appeal fees which will be given to the party winning the dispute. This way if a party makes frivolous appeals to harm the opposing party, the opposing party will get a compensation for the time loss, while if the appeals are finally ruled to be legit, the stake will be returned to the appellant.
USE CASE
Abigail operates a local retail store locally and wishes yo expand nationally. In doing so, she's well aware of some difficulty that could arise when defects are found in the product she sells, but she didn't so anything about her as she has no knowledge of kleros. After starting this, about a month went by and issues started arising and her business starts getting negative word-of-mouth as a result of dispute that arise during purchase and customers can't lodge complaints directly. There's no way she can afford adjudication as this is completely out of the picture. Her business went down and she had to start from the scratch, until a friend told her about Kleros and how she can resolve differences that could arise when contracts are initiated. She then pursue her dream of going national , she now have access to smooth resolving of issues that arise with customers from far end of the country. She's now thinking of going international as dispute resolving now comes with ease. Kleros has really done her good.
CONCLUSION
From my own point of view, Kleros is a platform every business organization that wants to have a future and doesn't want it destroyed by disputes and complaint. Also every individual that doesn't want to be cheated when entering into a contract either with a firm or a contractor or a business entity.
With the use of smart contract, they ensure that who ever wins gets paid instantly without any qualms.
KLEROS ROCKS!
To learn more about kleros,check their website by clicking
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