Kleros: A dispute was never so easy to solve! // sponsored-writing-contest: Kleros - @Originalworks

in #crypto6 years ago

Disputes are part of the daily life of the human being, for millennia we have seen the need to solve problems through discussions, whether peaceful or violent. At present this has not stopped being so, every day we see ourselves in the obligation to solve problems with other people either in our personal life or in the workplace and this time I want to focus on work problems because I bring a solution for you.

In the business world there will always be discussions to resolve and sometimes they can become a little annoying or tedious, due to the disagreement of both parties involved, arriving to spend a lot of time to be able to resolve this disagreement, thus causing delays or stagnation in the business, I am sure that you identify with this that I propose here. If you are a merchant or you simply dedicate yourself to the world of business this is for you!

I present to you Kleros, an application or platform with Ethereum Blockchain technology dedicated to the solution of commercial conflicts easily, quickly and safely, but how do you do it? Kleros has a large team of juries specialized in different topics that provide a solution to the discussions through fair votes, make decisions that benefit both parties involved, thus giving a fair and reliable verdict, for this they are based on the creation of contracts smart, but this will explain it below.

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Kleros works in the following way:

Users come to Kleros to resolve any disagreement quickly, economically and reliably, without having to resort to legal entities that increase their cost, such as lawyers or courts. After this, they create an intelligent contract in which they stipulate all the terms, possible solutions, tests and relevant information about the case, then this contract is sent to the jurors of Kleros and they evaluate each argument according to the subject of the dispute, and the judges proceed to make the best possible decision. Once the verdict of the Thursdays is dictated through their votes, this result is sent to the users by means of the contract inteliente.

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Below I will show you a great example of how Kleros works, this is a case in which a proractor and his client disagree:

"(Alice is an entrepreneur based in France. She hires Bob, a programmer from Guatemala, on a P2P freelancing platform to build a new website for her company. After they agree on a price, terms and conditions, Bob gets to work. A couple of weeks later, he delivers the product. But Alice is not satisfied. She argues that the quality of Bob’s work is considerably lower than expected. Bob replies that he did exactly what was in the agreement. Alice is frustrated. She cannot hire a lawyer for a claim of just a couple hundred dollars with someone who is halfway around the world.

What if the contract had a clause stating that, should a dispute arise, it would be solved by a Kleros court? Kleros is a decentralized application built on Ethereum. After Bob stops answering her email, Alice taps a button that says “Send to Kleros” and fills a simple form explaining her claim. Thousands of miles away, in Nairobi, Chief is a software developer. In his “dead time” on the bus commuting to his job, he is checking Kleros website to find some arbitration work. He makes a couple thousand dollars a year on the side of his primary job by serving as a juror in software development
disputes between freelancers and their clients. He usually rules cases in the Website Quality subcourt. This court requires skills in html, javascript and web design to solve disputes between freelancers and their customers. Chief deposits 2 pinakion, the token used by Kleros to select jurors for disputes. The more tokens he deposits, the more likely is that he will be selected as juror.

About an hour later, an email hits Chief’s inbox: “You have been selected as a juror on a website quality dispute. Download the evidence here. You have three days to submit your decision”. Similar email are received by Benito, a programmer from Cusco and Alexandru, from Romania, who had also activated their pinakion for the dispute. They were selected randomly from a pool of almost 3,000 candidates. They will never know each other, but they will collaborate to settle the dispute between Alice and Bob. On the bus back home, Chief analyzes the evidence and votes who is right. Two days later, after the three juries have voted, Alice and Bob receive an email: “The jury has ruled for Alice. The website was not delivered in accordance to the terms and conditions agreed by the parties. A smart contract has transferred the money to Alice”. Jurors are rewarded for their work and the case is closed.)" Source: Whitepaper - Page 2
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[Source]() Being a platform with blcokchain technology it is understood that it works in a decentralized manner, using a large number of judges who are in a loyal world, they give their vote in an honest way taking into account the evidence and the information included in the contract intelligent, and surely you will ask yourself, Why do judges act honestly? Well, this is easy to explain, within Kleros there is a form of insentivos that are issued to the judges to reward their good decisions, these incentives are tokens Pinakio (PNK) if the judges do not vote honestly or try to do some kind of bad play will lose money on the page.

Well now that you understand a bit more how it works, I will also explain to you how the judges make the decisions regarding the disputes, within the smart contracts a number of options are included, which will be selected by the judges as appropriate for the part If you are right, leave a brief example of how it would be:

  • "(“Reimburse Alice”
  • “Give Bob one extra week to finish the website”
  • “Pay Bob”.
    The smart contract will also specify the behavior of the contract after the ruling is done. In the
    example:
  • “Reimburse Alice” transfers funds to Alice’s address.
  • “Give Bob one extra week to finish the website” blocks new disputes for one week and removes
    this option from further dispute.
  • “Pay Bob” transfers funds to Bob’s address.)"
    Source: Whitepaper - Page 4
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Cases in which Kleros can be used

  • In the event that two people are conducting business for the delivery of a service and that this does not meet the quality level stipulated.
  • (This is one of the most common cases) If an item is purchased in a virtual store and when it reaches its destination is something different from what is shown in the store or does not have the quality or accessories stipulated in the advertisement, the money may be reimbursed to the buyer
  • "An unpleasant comment posted in a decentralized social media platform is deemed to have broken terms and conditions."Source: Website Kleros
  • In the case of the negotiation of a product that will be released for sale but that does not meet the security standards or that has been discovered that its launch is not viable, in this way the investment in the product is returned to investors, and that by means of the contract inteliente were frozen previously
  • In any case that a product or final service is not delivered, does not comply with the standards, is not safe, has no quality, or is paid in advance and is not received
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Bribe Resistance

At the time of the "Trials" a number of juries that is always the majority, make an honest decision, in case the counterpart was bribed, at the time of the victim's appeal, the counterparty must be bribed again so that a dishonest verdict again, and so on while the victim is appealing with his evidence in favor, this would mean a great expenditure in bribes on the part of the accused, but no one is willing to spend a large amount of money in bribes because in truth it would be every time Larger, be loser in the same way to get to the general court where the number of judges increases, this guarantees compliance with the rules and the issuance of honest verdicts, but what would happen if there is a defendant who is willing to spend a lot money in bribes? Well, the system is prepared to support this, since more than 70% of the tokens are controlled by the division of honest jurors who do not accept bribes, this for the good of the platform, since no one would trust Kleros if the juries were corrupt, would lose all the credibility that counts today
Source: Website Kleros
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Well, now that it is well explained what may cause more confusion in the users, it is time to answer a series of questions that arise as you go deeper into the subject, and that can undoubtedly clarify many doubts existing in the readers

How Kleros will the way people and companies handle disputes change?

Most companies in the world handle internal and external litigation legally, go to court and spend large amounts of money on lawyers and waste a lot of time, with Kleros, this is totally contrary, since on this platform the disputes are resolved from fast and reliable way. economically and transparently, this will undoubtedly make many companies adopt this way of resolving commercial disputes or differences.
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How can Kleros help reduce the costs associated with resolving disputes?

By having a large number of judges to vote in the cases of disputes, Kleros makes users save money by not having to invest in lawyers or tax expenditures, as this platform is responsible for the creation of smart contracts and through the verdict is delivered quickly, which means that companies can quickly concentrate on their activities and continue generating income.
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How can Kleros benefit small businesses?

This question is linked to the previous one, because the answer is almost the same, when using Kleros, a small company will not have to spend its capital on lawyers and having the backing of this platform when it comes to resolving commercial disputes will not have lost of money in case that deal with a client is not fulfilled by the client.
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How can Kleros benefit large corporations that handle many disputes (think eBay, Etsy, Amazon, etc.)?

These large corporations have daily shipping problems or supplier failures in terms of products, but with a platform like Kleros they are not a major problem, as Kleros would be responsible for solving them while the companies continue with their daily activities. this would avoid wasting time and take advantage of it every day and avoid the demands of dissatisfied customers.
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How does Kleros guarantee equity through its incentive system?

Thanks to the Kleros incentive system, the judges act honestly since the reward in the form of tokens is motivating. For the judges to be able to enter the cases of disputes and act as voters in the options, they must transfer or invest a certain amount of tokens, the greater the number of tokens the more possibilities there is for the judge to be chosen for the case, this guarantees that the judges who contribute the most are those who are left with the reward, thus being equitable the incentive granted by kleros.
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Part of the great team of Kleros



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More information of interest to you:

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