Kleros is a decentralized application built on top of Ethereum that works as a decentralized third party to arbitrate disputes in every kind of contract, from very simple to highly complex ones. It relies on game theoretic incentives to have jurors rule cases correctly. The result is a dispute resolution system that renders ultimate judgments in a fast, inexpensive, reliable and decentralized way.
Kleros guarantees the private sale of the main investors, choosing to proceed directly to a public sale in which everyone has the same opportunity to acquire the tokens. Buyers are free to send a bid for tokens, but retain the option to voluntarily withdraw their offer if the 'maximum limit' of the sale is too high. And through their system new rounds of financing will be scheduled as we complete the milestones. presented on the kleros website.
Kleros will provide arbitration of disputes, allowing claims to be resolved in a clear, fair and transparent manner.
Kleros has a series of built-in defenses against the first case of failure. Mainly, our appeal system makes it difficult for such deviations to persist.
The subcutting system of Kleros consists of a root and different branches. The root is a General Court, from which arises a series of branches. Each sub-section is dedicated to a specific type of dispute.
The contract establishes in which sub-court the arbitration will take place. Some specialize in electronic commerce. Other in finance. Others in insurance contracts.
The important thing is that there is enough money to compensate the jury for analyzing the evidence and voting a verdict.
25 centuries ago, the Greeks understood that the problem can be solved through a combination between a token and a random selection mechanism. Anyone can apply as a jury candidate in a sub-court by depositing a token called pinakion (PNK). This represents the possibility of being chosen as a juror in a dispute. The greater the amount of tokens activated by a user, the greater the probability that he will be chosen as a jury. The selection is made randomly among all users who activated their token in a specific sub-section.
When a new contract is created, the parties agree to use Kleros for the resolution of disputes regarding the oracle data. This will take place in the form of an arbitrable price oracle in which juries resolve disputes over prices at the time of agreement.
This will allow protocol users to choose their dispute resolution system between centralized arbitrators, Kleros or other arbiters who follow the standard, If a dispute arises, it would be resolved using the Kleros dispute resolution system. Crowdsourcing juries would define what price should be used to settle the contract. After the jurors have voted the correct price, everyone receives compensation for their work, and the contract is resolved.
These are redistributed among the juries who voted consistently. The net effect on each jury will depend on the difference between the value of the fees earned and the value of the lost tokens, As usual, some users will try to abuse the system. But Kleros is robust against attacks.
The pinakion is a critical element of the system because it provides the incentives for Kleros to produce true decisions. The expectation of winning or losing tokens gives users an incentive to apply in the sub-courts where they really have experience, to analyze the evidence carefully and to vote honestly.
Kleros a Protocol of Multipurpose Justice
Although in this article the example of a development dispute is used, Kleros is able to adjudicate a wide range of cases. Some will start working in the immediate future. Others will only be viable in a longer period.
In the early 1960s, 11.5% of cases filed in US courts came to trial. In 2002, it was only 1.8%. The decline is not due to fewer disputes, but to the increasing use of alternative Katsh and Rabinovich-Einy 2017 resolution processes.
In recent decades, in order to cut the budget for administration of justice, different governments promoted the use of alternative dispute resolution in areas such as commercial disputes, consumer protection and employment. Some Kleros applications will include arbitrations of small claims such as credit card fraud, consumer claims and housing rents. The cases would be decided online and the execution will be in charge of the government, as well as the traditional voluntary arbitrations.
The vision of Kleros is to become a decentralized adjudication network for a large number of disputes.
Social and economic interactions are mediated by global platforms that connect content producers, consumers and advertisers (Facebook and YouTube), buyers and sellers (Amazon and eBay), drivers and passengers (Uber), and travelers and hosts (Airbnb).
Kleros can offer this solution: a decentralized escape hatch, a method of correcting errors to revoke smart contracts when compliance has become unreasonable, This will allow the use of smart contracts to be extended to a growing number of industries.
The cryptocurrencies are contributing to the cause of financial inclusion. The inclusion of justice is an equally important objective. Just as bitcoin democratizes access to financial services. The promise of Kleros is the democratization of justice for all.
