Kleros - Decentralized Justice System of the Blockchain

rnunez09 (58)in #originalworks • 6 years ago (edited)

Kleros

The blockchain technology guarantees that you can perform smart contracts, however, when a contract is made it can arise disputes between the parties involved, this problem can often be resolved in a friendly manner or if necessary it must be taken to the judicial system. For example, when a company is hired to remodel a house and the client at the end of the project is not satisfied with the work done that does not meet the specifications, a dispute may arise. These types of aspects are often not considered commercial contracts, but Kleros offers us an innovative platform that serves as an arbitrator in the resolution of conflicts in smartcontracts.

What is Kleros?

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Kleros is a decentralized platform that serves as an arbitrator in the resolution of disputes in smart contracts. Users have the option to contract this service to protect themselves from any failure in the specifications of the contract. It has juries in various areas such as commerce, transportation, consumer protection, travel, among others, professionals with a great capacity for rapid and rapid response.

How are disputes resolved today? What does kleros offer?

Currently there are sites that offer services to mediate disputes, but often do not have qualified staff and users do not receive professional attention, this can cause them to lose their money.

Kleros offers an alternative to be protected in smart contracts, it is ideal for disputes in contracts where the value of the transaction is small, since the costs of taking the case to court is very large. But it is profitable for any type of contract, since Klero offers the best rates in the market.

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Mechanisms for resolving disputes of Kleros

Users make a contract with Kleros, then select the details of the contract as:

Quantity of Juries
Category of contracts (subcourt), which is the court according to the type of contract, for example, if the contract is transport then choose the court that deals with that type of case.
Results, the parties to the contract choose the possible results for the jury to vote one of the options if a dispute arises.

The resolving mechanic of kleros is divided into subcourt and that into categories:

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Kleros incentive system

Kleros has an incentive system based on the theory of games proposed by Thomas Schelling, where the jury is rewarded with Pinakion symbols when it votes coherently with the other juries. For example, if 5 juries voted for option "B" and one voted for option "C", then it means that option "B" is correct, the jury that voted different is penalized and will lose tokens.

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Example of the use of Kleros

Peter is a small businessman who hires an advertising company to make a campaign and be more visible in the market. They agree to a payment of 600 $ to begin the work and another 700 $ at the end of the work in a time of 30 days.
They define the specifications of the contract and Peter cancels the first $ 600, however after 30 days the work has not been completed. Peter communicates this to the company and they tell him that they can not continue their work, that the personnel that was assigned to his contract resigned.

Peter feels frustrated, since to carry out the case to justice would be very costly, he would lose more than the $ 600 he invested. If Peter had secured his Kleros contract, he would have the option of taking the case to a court and a panel of judges helped him.

Kleros, protect your investment.

Secure your contracts with Kleros for peace of mind and security if disputes arise in your smart contracts. The Kleros platform offers a resolution of disputes in contracts reliably, quickly and at the best price.