Kleros : Efficient settling of disputes and Contract Bridges, Blockchain Inspired.steemCreated with Sketch.

in #dapp2 years ago (edited)

As humans, it is completely natural to have disputes as well as misunderstandings.

Every individual develops his own judgment according to the experiences that are constantly shaping his personality and his own way of interpreting things.

However, peace cannot exist in the complete absence of a dispute, the truth of the issue is that dispute is expected to abound.

The more complex a society is, the higher the chance of having disputes

Even with the advancement of technology, interactions and transactions in the digital world have increased, to the very extent that many people on blockchain space are included.

In respect of the challenges, there is a need for intervention and settlement.

This requires a third party intervention so that disputes are resolved in the best objective way possible, through the assessment of the information and details readily available and deciding on the parties right.

This can only be done when there is a high level, top-notch organization. Traditional means have failed to successfully handle this, but the blockchain presents a means and effective management of this.

Introducing Kleros


Kleros is a decentralized blockchain technology that acts as a court. It is built on the ethereum blockchain as a dispute resolution platform that resolves any type of dispute between two parties in an automatic, fast, fair and economical way.

The system is like a third party or intermediate between two disputing entities who have had a breach in contract or some sort of suspected fraud.

Kleros takes advantage of crowdsourcing technologies to implement game theories and economic incentives to develop a fairer and less expensive justice system

How to get started using Kleros.


To get started on Kleros, you need to integrate the Kleros working algorithm to your blockchain or desired environment.

The Kleros process can be integrated by first creating an arbitrator. The arbitrator was developed by Kleros with several options that allow entities to choose any arbitrator that follows the standard to solve disputes.

This implementation consists of three general parts:

  • The smart contracts
  • The store
  • The UI.

Here is the arbitration standard so created by Kleros - ARBITRATION STANDARD

Working Principle of Kleros

  • Contract Creation
  • Dispute
  • Selection
  • Enforcement

Contract Creation

This is the first process of using Kleros, whereby users who are dissatisfied or angry in a contract case create a smart contract feature on the platform and select Kleros as their adjudication protocol.

These ones are called CONTRACT CREATORS


Every relevant information and detail is sent to Kleros after selecting Kleros as an adjudication protocol. The information sent is effectively utilized in settling the case


Another set of selection is being made by contract creators, as they select the jurors they want. Jurors are evidence evaluators and this right is made possible by some factors, one of which includes; the number of tokens deposited, as a means of removing inactive participants


Since the smart contract is already an automated system, it reaches and decision and the decision so enforced is communicated to the affected participants

Features of the Kleros Platform

  • Arbitrated Contracts

This is basically the creation of the smart contract process, where the participants design Kleros as their Arbitrator. They have the sole right to choose the number of Jurors they want in the case handling.

The court that can be chosen from is highly dependent on the particular dispute. Below is a list of courts a user can choose from


There are also options for jurors, these actions are to be taken when a decision has been reached. They are like programmed actions. For example, ‘REFUND PAYMENT’, ‘GIVE MORE TIME’

If the dispute gets complicated, security and highly classified information are only sent to jurors after their identity gets hidden through an encryption system on the blockchain

  • Selection of Jurors


In order to eliminate manipulations and corruption in juror selection, certain processes are undergone so as to ensure the integrity of the jurors.

To ensure this is avoided random numbers will be generated using the Proof of work (PoW) which follows the following ways:

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

The drawing of a juror is dependent on the number of tokens deposited by a juror The token used in this system is the PINAKOIN token and has two important roles: Protection from attacks, if the drawing was randomly done and the pinakoin token is not used, malicious users could take advantage of the drawing process and the pinakoin token ensures honesty, if a juror is found guilty, they pay part of their tokens as punishments the just ones. No one would want to lose their tokens. Hence, honesty is maintained Whitepaper

  • Votes


After the evidence has been submitted, it is voted upon by jurors. A juror cannot change his vote as they can only vote once.

Moreso, no juror sees the vote of another, so that votes are not influenced. This is then verified by the smart contract

  • Arbitration fees

This is the fee paid to the jurors as a reward for the job well done. The arbitrate smart contract determines who pays the arbitration fee. Two instances exist for the payment

  • Each party deposits an equal amount, if any party fails to deposit, the smart contract considers the other person the winner. But if both parties deposits, then the winning party is reimbursed

  • In appeals, both parties have to deposit the arbitration fees. 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.

Why use Kleros?

Kleros offers many exciting benefits and to think it is blockchain based makes for its uniqueness. It is sure going to disrupt the Judicial system if fully implemented. Here are some of the reasons why it is very valuable

  • Appeals are allowed in cases of dissatisfaction
  • Reduced cost
  • Privacy is assured
  • Rewards for jurors
  • Just and honesty is assured since the penalty is meted out to incoherent jurors
  • The dispute is settled very fast
  • Reduced bribery and increased transparency in dispute resolution
  • Selection of users is based on specialization

Summary of Kleros in Graphics


Final Thoughts

In a world where our society is becoming so complex and innovative, there is the need to account for the excesses of this systematic evolution. One of which Kleros has provided, which allows disputes to be settled effectively.

The decentralization Kleros brings alongside transparency and efficiency makes it suited for the world’s needs. The smart contract processes and juror checkmating makes it really trustworthy and recommended.

Contract bridging will be a thing of the past as people will have no fear of signing contracts with individuals
Indeed, the Kleros platform is an ideal life changer!

Useful Links

Kleros Website
Kleros Whitepaper


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