KLEROS

Ether contracts are an amazing way to make a deal with someone. All do to create an Ether contract you must know the native Ether language Solidity.

Solidity is a new computer language that is different from all other languages so even a computer science expert would have to take some time out of their day in order to learn how to implement Solidity. Since Solidity is a computer language it is hard for the average person to use it.

Then there are traditional contracts. There are various kinds of traditional contracts. The most commonly used is a gentleman agreement. People in this kind of contract must fully trust that the work will get done or that the product will be delivered and that the payment will be made once the product is received or that the task will get completed. These kind of contracts hold a lot of risk for all who are involved.

Even if a contract is documented on paper that does not mean that those that entered the contract do not have malicious intent. For contracts that do not have a lot of money at stake it is easy for people to not deliver. This is because the amount of money it would take to settle it in court is more than the money in dispute.

This means that people have to hope that they get paid and if they don't they simply have to let it go. This can be counterproductive and slow business growth damaging the economy as a whole. It is also very infuriating to put a lot of work into something or deliver a product and end up not being paid.

The mechanism of today justice system are outdated and even if the person has the funds to seek restitution their case will likely take a long time to be resolved do to the fact that the cases that came before will be dealt with first. Then there is likelihood that the people that work in the justice department are corrupt. Corruption always makes the situation even worse.

This means that few people actually have access to this new technology or old institutions. Kleros is working on creating a Dapp that simplifies the process of making an Ethereum contract. This will open the doors to not just companies but average people who are looking to do business in the most secure way possible.

With an Ethereum contract people feel that once the job is completed the contract will release the funds securely. Kleros has not only made it easier to build an Ether contract but has also added a judicial system in order to mitigate any disputes that might transpire.

Those that enter the contract will choose what court they will use based on what business sector the contract is in. For example if the contract is for app development then they will use an app court.

The contract creator must specify what must happen when an event takes place.

Example

• Pay Jacky to Address XX00000XXX
• If Jacky completes the contract before the due date payout to Address XX00000XXX
• Refund Thomas if Jacky does not complete task

People can also choose how many jurors will participate within the contract. Those that wish to be jurors must hold pinakion tokens in order to be selected. Those that hold the highest amount of tokens are more likely to be picked. Jurors will only be able to pick one type of court they can participate in.

Jurors must hold tokens in order to keep someone from creating multiple accounts and taking control of the network. The token is also for keeping jurors honest by having dishonest jurors pay a portion of their tokens to honest people.

Escrow
The simplest example of escrow is when a person buys a soda from a vending machine. When the person inputs the money into the machine the machine holds it in escrow till the purchase of the soda is completed. If the vending machine is out of the soda the customer wants they can press a button to have their funds returned from escrow.

Kleros can be used as a digital machine that holds funds till the product is delivered. If there are any complication with the transaction you can file a dispute in order to resolve the issue.

Kleros packages a system that is designed to resolve any issue that might arise. This will take the stress off of people since there will be no need to trust that the payment will be made or risk that the product might not be delivered.

Payroll
An employer can use Kleros to create a contract that releases funds at a specified time. The contract can represent how long the employer wishes to hire the employee. If the employee is terminated or if any disagreement takes place it can be settled within Kleros.

The funds are secured out of the control of the employer and gives the employee more job security than in normal job situations. This can create a more stress free environment for workers.

Savings Account
A contract can be built with the goal of saving money for the future. The savings can be for numerous things such as future home maintenance, vacations, or kids savings account. The money can be safely locked in a contact and will not be released until specific goals are met.

Keeping funds locked away in Ethereum is great since the value of Ether has been outpacing the value of the dollar. If anything happens such as a family member attempts to gain access to the funds a dispute can be raised in order to keep funds secured until the proper time has arrived for the funds to be released.

Crowdfunding
When someone has an idea for a new technology or product they often do a crowdfunding campaign if they are lacking funds. All do we would like to believe that everyone that does a crowdfunding campaign will deliver their product to market there are those that do not produce anything.

This is not just limited to crowdfunding campaigns but also to Initial Coin Offerings. There have been numerous ICO projects that have done exit scams leaving investors holding useless tokens with no value. The most infamous ICO is Bitconnect.

Bitconnect had a way of making people believe in their token. Basically they put on a great show that was very captivating. Bitconnect eventually collapsed do to many factors. When Bitconnect collapsed people lost millions of dollars.

Bitconnect went from being worth a few hundred dollars to a few cents. Then it got delisted and became a dead coin. With Kleros a contract can be built that protects investors from fraud. This will make investing far safer than it has previously been.

Games
A number of games can be created using Kleros. For example a word game can be created in which people submit an answer to a question. If the answers vary then the contract initiates a dispute.

The system then analyzes all the answers submitted and comes up with a solution. Once the solution is found those that are considered correct by the system win the game and are payed out. Those that are wrong lose the deposit that was paid to enter the game to the winners.

Arbitration of Airline Passenger Claims
Airlines receive far more complaints than they are able to handle. Also airlines may sometimes not handle the situation properly creating a mountain out of a mole hill. Say the airline needs a seat for one of their workers and has a passenger removed from a seat. The passenger can then use Kleros in order to file a claim against the airline. This will cut the time it will take to resolve the issue. It will also take pressure off the airline.

It is also common for luggage to get lost by the airline. This can be frustrating for passengers since it leaves them without a change of clothing and essential supplies. It normally takes a long time for the issue to be resolve so people just take it as a lost. This often damages the reputation of the airline. With Kleros the passenger can submit a dispute for their lost baggage in order to receive compensation.

There are numerous other problems that the airline may have which Kleros can help find a resolution for which will help improve the reputation of airlines. Disputes can help improve work ethics by reporting improper behavior. There are often times airline workers that treat passengers poorly.

This poor treatment often remains unreported by passengers or if it does get reported it does not get dealt with because of the volume of reports is far more than the airline can physically handle. Automation of the complaints department is key to improving not just the airlines image but the passengers experience. A passenger can report an airline workers misbehavior filing a dispute.

Once the dispute is settled and if the worker is found to be in the wrong the passenger is compensated. A report is then provided to the airline about the worker and the worker is disciplined. If the worker continues to mistreat passengers then the airline will have enough evidence in order to fire the employee.

Securing Kleros Network
If anyone on the network notices a malicious contract such as a scam or someone is spamming the violator can be reported. The person placing the report must place a security deposit in order to prevent abuse.

If the account that is being accused is found to be malicious they will lose their account sign up deposit, their contracts will be removed, and their status will be lowered on Kleros. If the person being accused is found to not be guilty of any malicious activity the accuser loses their deposit and is awarded to the accused.

Dispute
In order for those in the contract to resolve their dispute they must present evidence to the jurors. Once the evidence is presented then the jurors will vote for the person they believe is being honest.

Jurors can not see each others vote in order to keep them from influencing each other thus making the outcome more honest. When the court reaches a decision Kleros will release the funds to the person who was considered to be in the right.

Appeals
If a person is not satisfied with the courts decision they can appeal. In order to keep people from appealing over and over again each time a person appeals the jurors will double exponentially. The increase of jurors for each appeal increases the fees making each appeal more expensive than the previous. This will keep people from abusing the system.

It is very difficult for people to bribe the jurors since each time someone appeals it doubles the amount of jurors which will double the amount of money the person has to spend to bribe the jurors. The exponential doubling of the jurors means that whoever wishes to bribe their way to a win must be ready to spend a ridiculous amount of money.

Kleros is a solution to numerous problems that small business faces. There are many ways that Kleros can be implemented. From business contracts to simply making something that is fun for everyone. Currently Kleros is at the development stage and you can test there Dapp on their website for yourself to see how simple it is to use. You can also review the code on Github. Federico Ast is highly motivated and sees Kleros as the future justice system that will replace our current outdated one. I have never seen such passion come from a CEO when they speak of their company. At a TED Talk Federico Ast explained with a smile how 100 years from now our descendants will look back at our justice system and think of it as we do of the Salem Witch Trials.

Video Explanation of Kleros

White Paper
https://kleros.io/assets/whitepaper.pdf

Sources
https://kleros.io/
https://apex.aero/2018/01/29/kleros-blockchain-justice-system-affect-passenger-claim-arbitration

Source Code
https://github.com/kleros

Social Media
https://medium.com/kleros
https://www.youtube.com/channel/UCEjwygFVVrSXhPNEKfweypA
https://t.me/kleros
https://forum.kleros.io/

Team

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https://steemit.com/crypto/@originalworks/940-steem-sponsored-writing-contest-kleros

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