Today, with digitization and globalization as well as the new emerging cryptomarketing projects that are born every day within the blockchain ecosystem, every day we are witnessing the large increases in online transactions between companies and people around the world, this has also led to small complications in making some transactions, with the massive adoption of blockchain technology great benefits for the economy have arisen and smart contracts have diligently protected individuals and companies during transactions, but recently we have realized that intelligent contracts cannot solve all subjective problems or include elements that are outside the blockchain, because of this it is not possible to solve problems outside the ecosystem, the problems, disputes and problems that arise between individuals and companies sometimes can not be solved in a fast and efficient way only with the support of intelligent contracts, it is necessary a system that takes care of the resolution of these problems when making transactions.
Kleros is a dispute resolution mechanism based on the Ethereum blockchain, this system takes advantage of blockchain, game theory and crowdsourcing technologies to develop a justice system that creates fair decisions in a safe, efficient and economical manner.
Currently, in cases brought before the courts, a solution or final verdict may take months, even years, in addition to the great costs that this would require, there is also the fact that the relevant persons taking the case into their own hands may not have adequate knowledge of the subject matter in dispute, the dispute may be related to the blockchain, and if the relevant parties do not have the necessary knowledge to take the case into their own hands they may give an erroneous or inaccurate verdict to the detriment of the parties in dispute.
Category of contract
Number of Juries
Results
The network of juries that make up Kleros is specialized in different fields and thus be more efficient regardless of the subject matter of the dispute, when two parties to a transaction can start a business can detail the contract with the Kleros system, the contract will include everything mentioned above, these contracts contain the funds of the transaction between both parties until all the requirements established by them are met, in case the transaction occurs without problems the intelligent contract transfers the good or service to one of the parties and the money to the other.
But in the event of a dispute such as this (one of the parties refuses to pay), the injured party may use the Kleros contract to make a claim, after which a number of previously established juries will be randomly selected (there may be 3, 5, etc.), the juries will review and analyze all the evidence and issue a result in a short period of time.
After that, both parties will receive a notice with the results of the trial and the smart contract will end the process to the benefit of the winner of the dispute, in case either party is not satisfied with the verdict rendered, they have the right to an appeal, which will invoke double the number of jurors + 1 and will review the evidence to find the solution again.
As an incentive, jurors receive compensation in the form of a Pinakon (token issued by Kleros) according to the quality of their work, but if a jury acts erroneously, their tokens will be reduced as a wake-up call, take for example a case where 5 jurors are chosen, all of them carefully review the evidence and cast their votes, 4 of them vote in favor of the plaintiff but the fifth jury votes in favor of the defendant, according to the game theory the 4 jurors who voted in favor of the plaintiff are rewarded with pinakon tokens instead the jury that voted in favor of the defendant loses a number of their own tokens. This measure helps prevent bribery and fraudulent acts during a trial.
Small Business: Usually small businesses don't have a law firm behind their backs, this is because it's really expensive, Kleros is a great option for small businesses as it would solve their legal problems....
Large companies: Contradictory to large companies if they have a large team of lawyers to deal with all the legal issues and lawsuits that may affect the company, but due to the large number of disputes that attack these companies on a daily basis, they must spend a significant amount of their budget to maintain their team of lawyers and all the indirect costs that this entails.
Cost Savings: By using the Kleros platform, both parties to a dispute could save hundreds or thousands of dollars, especially the defendant.
Incentive: Jury members receive incentives according to their judgment, since if their vote and resolution is clear, they will be rewarded for it; if the vote is inconsistent, they will lose tokens and consequently their trust and reputation within the system.
Time: Normally the time it takes the Kleros platform to dictate a result is 3 days, this is a great advantage in cooperation with the traditional courts that normally take months or even years to give a verdict.
Anonymity: The identity of the jurors involved in the case remains anonymous to avoid bribery or even intimidation.
Experience: The juries chosen for the different cases are people specialized in different fields in order to give a much more precise and efficient verdict.
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