Kleros: The Legal System for The Rapidly Transforming Digital World

Kleros is a legal system for digital platforms. The digital platforms need to nominate Kleros as their official mediators for solving disputes. The smart contracts they design would have a programmed condition for the parties to resolve their issues through the Kleros platform. If both parties agree to this condition, then any conflict between them would be resolved via the methodical system of Kleros. The platform itself would decide on the number of jurors and the sub-court that will take their disputes. The sub-courts include a variety of subfields that any of the platforms divulge in. they may be e-commerce or insurance-related or transport-related. The platform would also have the option of letting the parties agree on the sub-court type according to their needs.

Kleros has designed template agreements that have incorporated the mechanism of conflict resolution. This prototype would also serve as a model for other platforms to create their contracts. This eliminates the step of choosing from among the procedures of dispute resolution and would already be integrated with the best solution programmed within. The collection of courts that the smart contracts can choose from is far-reaching. It is divided into general categories of e-commerce. Transport and Insurance divisions. These divisions are subdivided. E-commerce division includes freelancing, Package delivery, and international deliveries. The transport division comprises of air transport, sea transport, and land transport sub-areas. The insurance division could be car insurance, house insurance, and commercial insurance. This provides the creators of smart agreements a whole range to select from according to their requirements.

The jurors chosen to resolve the issue would be given the choices in terms of the dispute at hand. If a website designer sues an entrepreneur for paying less. The choices could be in line with compensating the designer, refunding the entrepreneur or giving more time to the designer for a better product. These would, of course, involve the legal names of the parties, used within the smart contract. The jurors would be able to select only one of the options. The contract would have these embed within and then displayed to jurors when an actual dispute occurs. All these options would lead to the actions that they indicate, and these would be carried out in real-time. If the majority votes go for the refunding the entrepreneur, the amount specified in the terms would be refunded to the entrepreneur. Alternatively, if the option of more time to the designer has been voted, then the designer would be given a specified time period to provide a better-quality product.

All the jurors participating in the polling for conflict would remain anonymous to prevent bias. Honest opinions are extracted using an incentivized system. The jurors acquire the PNK tokens (pinakion) as a reward for their involvement. The jurors stake the tokens to be selected again for resolving another issue. Without staking, the jurors are not given a chance to be selected. So even if the selections remain random, the inactive, fraudulent and multiple identity jurors can be fished out and automatically eliminated from the system.