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kleros

Kleros Justice In Blockchain Technology

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Introduction

An accelerated process of globalization along with the popularization of cryptocurrencies make it possible for commercial exchanges never before seen to take place. As if this is not enough, thanks to blockchain technology, these commercial transactions last only a few minutes. Users will not have to wait for whole days for confirmation of their payments internationally.

This growing market has brought with it countless profits for sellers / Bidders and for Purchases / users. However, in this world disagreements and dislikes among the people involved in the exchange have not been lacking. Some, as in the case of eBay, are cases where it is stated that the seller did not send the product as specified in the agreement. Others, like those on Airbnb, complain that the house was not "like the one on the web page." Others are sponsors in campaigns or donors of a crowdfunding that demand for the breach of the results promised by the entrepreneurial team.

Currently, there are no methods or arbitration platforms that allow users to have a satisfactory resolution of conflicts at times according to current dynamics. The existing ones are excessively expensive, slow and unreliable. All until now, since the appearance of Kleros things changed. Kleros, a dispute resolution protocol based on collective intelligence using the Schelling Point principle and based on the transparency and reliability of blockchain technology.

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How does Kleros work?

The Kleros platform connects users who need to resolve disputes with other individuals who will serve as jurors. These individuals consist of the skills necessary to solve disputes fairly and quickly. The resolution methodology proposed by Kleros uses the blockchain technology and in conjunction with juries in anonymous open collaboration to solve each case quickly, safely and accessible.

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Decision making with Kleros

All people who wish to Kleros as a tool for resolving their disputes should go through the stages of the process:

  • The contract
  • Providing the Evidence:
  • Selection of the jury
  • Analysis
  • Voting
  • Appeal
  • Redistribution of tokens

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Smart Contracts

The people at the time of the creation of Smart contracts must include Kleros as the mechanism for resolving conflicts at the time of submitting a dispute. In the clauses of the Smart contract all the details for the resolution of the conflict must be specified: number of juries, Sub-Court where the arbitration will take place and the voting options for the juries.

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Provision of Evidence

When the resolution is activated by any of the parties the contract in digital format and the relevant evidence is sent to Kleros with cryptographic security. This guarantees to the users that the privileged information provided will be safe and that no malicious third party will have access to it.

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Selection Of The Jury

Kleros uses two principles to carry out the selection of the jury: self-nomination of candidates and the realization of a draw. These two conditions are further supported by the anonymity of the jurors to avoid retaliation and intimidation. This is done so that the decision of the jurors is not coerced or bribed by any of the parties.

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The first thing candidates for juries must do is apply for a sub-court, for which they will make a deposit of Pinakion tokens. Each sub-section will have multiple simultaneous cases and multiple candidate applications. A draw mechanism will be responsible for assigning the candidate to a specific case.

  • Once the juries have been chosen, the pinakion are frozen. They will only be released once the court has delivered its verdict.

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Analysis

Jurors receive access to evidence. Each one will have to analyze it and give its verdict. Each sub-section has different parameters regarding the procedure for making decisions and different times to make the decision. The conditions will vary depending on the complexity of the voting options and the possibility of communicating with the parties.

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Voting

Once the analysis process has been passed, the jurors will vote for one of the preset options in the Smart contract. The interesting thing about this part of the process is that they are obliged to provide a justification for their decision. The winning option will be the median vote of the jurors. This form of conflict resolution gives a consensual and robust result in decision making.

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Appeal

If a party is not satisfied with the decision, it will always have the possibility to appeal. Sentences can be appealed infinitely in theory, the reality is that decisions will be appealed until economic possibilities make it possible. In each round a new court with twice as many juries plus one that in the previous round is set to re-evaluate the case. The appealing party will have to pay the appeal. If you lose again, you can appeal again, always taking charge of the costs of the process.
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Redistribution Of Tokens

After having reached a final decision, the pinakion are thawed and redistributed among the juries. Each jury will receive or lose tokens according to the coherence of its vote with that of the majority of the votes cast. The redistribution is based on the logic of the Schelling Point. According to this logic, if the juries were correctly selected and had access to the same evidence, they should reach a similar verdict in the same case. According to this concept, the juries that voted incoherently with the rest were apt to make a decision or made a superficial and inappropriate analysis.

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  • Token redistribution after the vote with seven jurors. Tokens are redistributed from jurors who voted incoherently to jurors who voted coherently. Bob lost the dispute and pays the arbitration fees. The other deposits are refunded

Regardless of the result of the dispute and the result of the redistribution of the tokens, the jurors will receive the arbitration fees, in equal proportions, as compensation or payment for the time invested in analyzing evidence and voting. This is one of the main motivations at the time of being sworn.
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Conclusions

The applicability of this system goes much further than simple arbitration between two parties. Kleros will be present in the future in a wide variety of cases. Kleros will address at first the arbitration of small disputes and arbitrations where the parties are not in the same geographical region.

This means that people no matter where they are or the amount of the dispute find the right place to resolve their conflicts on these platforms. Also, people who make frequent use of workers online or professionals who constantly offer their services on the web will have an essential tool to protect their interests. In case of dispute, Kleros may provide an arbitration service that currently does not exist. This will significantly increase the chances of being hired for workers from countries with weak legal frameworks.

  • Kleros is changing the way people relate to the world of cryptoactives since it replaces weak legal frameworks with a platform that solves conflicts in record time.

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Kleros Team, Advisors And Partners

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Watch the video for more information

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ACCURATE INFORMATION

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