KLEROS
The Blockchain technology is not an easy idea to understand and less to explain, we always look for information in a simpler and less technical language. However, the Blockchain is undoubtedly a technology that must be understood because it was introduced into our lives and our markets, and it also promises to be the best alternative to carry out reliable and safe online transactions.
Currently, any commercial agreement with a person through the internet means blindly trusting that the counterparty will comply with what corresponds to the deal. However, this is not true every time. Despite efforts to reduce malicious activities online, the task of minimizing this threat has been difficult.
What is Kleros?
Kleros is a decentralized platform of Ethereum for the resolution of disputes, it works as a third party to arbitrate disagreements in all types of contracts. The arbitration process is completely automated and uses crowdsourcing, blockchain and game theory technologies to offer a reliable, fast and safe justice system. KLEROS consists of several juries that specialize in different categories. These juries are always available to resolve disputes.
Advantages of Kleros:
Low cost
Kleros Has the best market rates in the resolution of disputes, this platform is ideal for people and companies where the value of the transaction in the dispute is too small to carry out a legal process, since the costs of taking a case to the court are very big. It is also a very good alternative for those large monetary transactions and for those who want to save money in legal representation.
It has an incentive system
In Kleros juries are compensated with arbitration fees after resolving disputes. Kleros employs an incentive system that guarantees honesty and fairness. Kleros makes sure that the members of the jury whose vote is not in line with the group lose some tokens and then redistribute them to another group of juries whose vote is coherent.
Security
When users make a smart contract they have the option of backing up with Kleros in the event of a conflict. This contract is an agreement in which the parties agree to comply with a series of conditions and their fundamental elements are the same. They are based on a computer program written in virtual code, a software that is programmed to carry out a series of tasks according to the instructions previously entered.
In addition to this, currently sites that offer dispute resolution protocols are not safe because they do not have qualified personnel, this means that at least one of the parties does not get a good deal, it may even have a total loss. Kleros offers highly qualified personnel, its users can be sure that they will receive a fair and fast treatment.
How does Kleros work?
Contract with Kleros
The creation of a contract is the best evidence in case of a dispute. Users create an intelligent contract and choose Kleros as the alternative in case of a dispute. It should be noted that the parties involved in the smart contract would choose a specialized court on the subject of the intelligent contract in which they are involved. For example, an electronic commerce contract will choose an electronic commerce court.
Disputa
The dispute begins when one of the parties did not comply with the clauses of the established contract.
If the creators of the contract reach a conflict, the contracts specify the options for possible results for the jury to vote and issue their verdict. All important information is sent to Kleros for the jury to call and initiate the process.
Selection of the jury:
Kleros sends all the relevant information of the case to the court previously selected in the contract and begins the selection of the jury willing to collaborate in the process. The jury decides to participate voluntarily, the blockchain technology offers a reliable process in the selection of the jury, where the theory of the games proposed by Thomas Schelling provides economic incentives to the jury when voting correctly.
The juries will be selected using a token called Pinakion, the greater the number of deposited chips, the greater the chance of being drawn for a jury. In this way, inactive juries have no chance to be selected.
Verdict:
Once each jury receives and evaluates the evidence, they cast their vote for one of the proposed options. The juries once they have given and revealed their vote can not change their decision. The votes of the selected jury are added and a verdict is reached; the decision made by the court is executed through the intelligent contract.
If, after the jury issues a verdict, one of the parties to the contract is not satisfied with the decision, can appeal the result and begins a new trial, the new jury will have twice as many members plus one, however it must pay a rate to receive a payment for the appeal that increases according to the number of appeals. The jury members of the first trial do not receive their payment, this encourages them to give the reason for their judgments and thus can convince the parties that the verdict is fair.
A particular case
Once I bought an Xbox for my children through a web page. I had to pay for this equipment a high sum of money to make the purchase. Even though the company that I chose for negotiation is highly recognized around the world, I decided to create an intelligent contract that stipulated that in case of dispute a dispute resolution system would be used, which in my particular case was not Kleros . .
The company sent me the product but I was not satisfied with the equipment. A dispute started and the resolution system took a long time to respond to my request. In spite of everything, I was victorious in the conflict and they made the product change, however, today I do not recommend this resolution system because in addition to the additional costs that this conflict created for me, I had to wait a long time to receive a timely response . Now, when I make another contract I will use Kleros as my new dispute resolution system.
Conclusion
Kleros has great potential in the field of online justice for small and large companies. Based on the benefits of the Blockchain technology, we are sure that it will influence the change of many legal procedures through the internet. However, the only way to discover and prove that the concept works is to implement and adapt it on a large scale.
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References
Kleros Website
Kleros WhitePaper
Kleros Medium
Kleros YouTube
Kleros Telegram
Kleros Twitter
Kleros Github
Kleros Forums
By @guillermos!
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