Kleros - The resolution layer for virtually everything

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We see and live today, as the world as we know it is becoming more and more digitized, with the passage of time it is more common to see smart contracts either by some web page design or some digital work requested by any person or company.

And with this we can visualize and live in person some problem with these intelligent contracts or that we have not been satisfied with the work done by the contracted.

It is necessary to have a dispute system in which case we are not satisfied with the work or project received by a scam or fraud, but with a good court system we can avoid these unfortunate situations, although today we do not have a system of disputes totally reliable.

That is why I will speak in this publication about Kleros and how it comes to offer a much more reliable and solid dispute system when evaluating a case and thus having this extra insurance.

The problem we have today, is that we do not have or can find a dispute system that is completely reliable and capable of carrying out some judgment on an intelligent contract.

Undoubtedly, in any contract, a dispute may arise, either due to low compliance with a work performed, not receiving the expected work, deficiencies in the performance of scheduled tasks, negligence or deception and that in the stipulated period any stipulated or scheduled work is not carried out and even then they still require or demand a payment.

But with all those cases there is a big problem which is, would it be worthwhile to bring a problem of only a few hundred dollars to trial? Maybe not, knowing how tedious it would be and how expensive it would be to take a problem to trial that, although it is important, is a bit small compared to other problems.

It is for this reason that it is very important to have some type of dispute system that goes from large cases to small, that does not matter the value or size of the problem and money at stake, that even then everything can be solved efficiently and confiable.

Hand in hand with blockchain, in the future many goods could be allocated through global decentralized platforms, this is a problem because it is almost impossible for each customer to be satisfied or that others really receive what they expected.

This will create great problems, create a distrust of the system, this can only be avoided with reliable dispute systems to solve these problems, although today we do not have such a system.

The assignment of goods, labor contracts, the design of web pages, the sale of articles or anything that requires some type of contract can create a dispute for nonconformity, that is why Kleros comes to help create a reliable and safe dispute system, giving the reason and supporting who really deserves it.

"Kleros is a decision protocol for a multi-purpose court system capable of resolving all kinds of disputes"

Kleros is responsible for arbitrating all kinds of disputes, no matter the size of the dispute, whether large or small Kleros will be responsible for conducting a completely fair, honest and safe arbitration.

Each step of the process is completely automatic, this goes from the obtaining of tests, to the selection of juries.

Kleros uses important technologies such as Blockchain in order to create justice systems that produce decisions that are completely true, in a totally safe and more economical than others.

Kleros is a great platform that undoubtedly seeks to solve all the problems that exist today as far as disputes are concerned, offering juries experts in the subject to create a greater confidence and be better accepted by the community. They also have good incentive systems that make these juries completely honest.

A Kleros does not care if the dispute is only for a few hundred dollars, the importance here is to resolve any current differences, thus leaving the client satisfied and justice is done, that the guilty has to pay and the victim has to leave rewarded.

Kleros consists of four points that are of utmost importance to do an excellent job, these four points are:

Contract
Dispute
Selection
Application

Here is an image with the concepts of these applications, what is the best way to use Kleros.

Doges on Trial

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There are several types of disputes that can be resolved, as in the case of any contract where the contracted must design a web page.

It can be electronic commerce, either the international delivery of packages or a simple delivery. Or it may be a dispute for some type of insurance offered and not fulfilled, such as insurance on your home or car.

We also have other use cases that could be resolved through Kleros as they are:

Arbitration: Which is any work that has been scheduled between two people but the contracted has not met the expected level, then a jury of experts on the subject would evaluate the situation.

Social Media: Any hurtful comment, abusive publication or photo with degrading content can be considered as unpleasant and that has broken the terms and conditions of such social network, jurors of Kleros would evaluate the situation.

Gaming: This is a large market, daily without thousands of people who may be playing online, but if you break any law of the contract will experts on the subject evaluating the situation.

Crowdfunding: "A startup supported by crwodfunders never materializes a viable product". In which case the experts in the subject, will be in charge of evaluating this situation and making the decision if they will have to return the money to the investors.

E-Commerce: Any product purchased online or shipping that has not arrived in the way scheduled or present any loss, a group of experts will review this situation and will be responsible for making the decision of whether to reimburse the money.

Oracles: They are responsible for allowing the use of real-world data in their results but in case of failure the situation will be evaluated by a group of experts in the field.

There is a point that is very important to emphasize which is, that each person can choose the specialized court in the subject, so in this way we should not worry about whether the juries are experts in the subject or not, as one is in charge to choose the right jury for the dispute.

This makes it a safer system because we can rest assured knowing that our dispute is being read and verified by experts on the subject and that they could give a verdict in an effective and honest way.

Source: WhitePaper, Page 3

Here is an example where the creators of smart contracts must select a court. Kleros is clear that as the platform is gaining users they will gradually add more cases of use that is necessary to create new subcourts, as it grows it will be mandatory to update the platform to new versions with additional features that go hand in hand with the demand that there is in the market.

We currently have many small and micro companies, if in these companies there is a disagreement with a contract or work done, perhaps the money that is at stake is not too large to take it to a court, when more money will be have to invest and the time that can be wasted going to a court for a "minor" situation.

Kleros will be responsible for allowing arbitration in a large number of contracts that are too expensive to continue in court, thus helping to reduce the time of conflict and helping to reduce economic losses.

Those who are aware of how problematic it would be to go to court for small disputes, search a more feasible option.

But today we can not find a solution that is good enough or accessible, the solutions we can find can give a verdict of distrust, since the juries or not have full knowledge of the subject, so that your verdict can not be reasonable.

With Kleros nothing of this happens, they are able to take a dispute and give a verdict in a reasonable way, this is because they have juries specialized in the subject, the clients are in charge of choosing the juries that have more knowledge of the subject thus generating greater security and also Kleros makes it a faster and cheaper process than if it were in a court.

It is for these reasons that Kleros is the best option to reduce these costs that are today.

Small businesses may have problems when a disagreement arises and a dispute arises, most of the time it may not be profitable for these companies to take the problem to trial because they know that they are only in dispute for one hundred dollars and going to trial would cause more expenses and inconvenience.

But they also know that little by little, as they let these problems go by because they are not worth it because of the small amount of money at stake, it is bringing many problems, both financial and performance, why both?

Financial because little by little when they go to obtain the budget and the loss of annual income they will realize that each time they let a conflict pass, at that time it did not look like a large sum of money but little by little as it accumulated to come to be a large sum of money, so they have now lost many dollars and have not had the income they expected.

On the other hand, in the performance is because of some reason have arisen these conflicts, perhaps these companies were paying workers or made contracts to design better web pages, help them to better operate your company, or to be responsible of functions that the company at that time did not have, but each time they needed these they were never lucky that the contracted person fulfilled his function which brings them now a problem of work and employer performance.

That is why Kleros can be very important for small companies, claiming these contracts from the beginning to Kleros, if the contracted do not comply with the request they will have to pay or reimburse the money that the companies will have paid, in this way they will not have economic losses, it can also be the case in which the hired one is offered more time to fulfill the functions for which he was hired and in the end to achieve the desired goals.

At any point that we look Kleros will greatly help companies, avoiding economic losses or poor performance, so it is important from now on to support Kleros to be already known and used by small companies and also the big ones, as well as the average person.

"Who controls the courts, controls the state" Aristotle. As Aristotle said, those who may be able to control the courts, will not have problems controlling the state, large companies such as Ebay, Amazon, Etsy, among others, should have this as a motto.

By having a large number of transactions as is the case of these companies, there are more occasions in which these cases may end in dispute.

"Between 3% and 5% ends in disputes, a total of more than 700 million in 2018 alone (Kaths and Rabinovich-Einy 2017: 67)".

This partly because having a great demand these large companies may be higher the number of disagreement, whether rightly or not, Amazon buyers can say they did not receive the item purchased or not in the way Amazon offered it in his web page.

Some buyer of Etsy can claim that they did not receive the purchased clothes or footwear or that the size was not correct, there are many ways in which these companies go out in dispute.

That is why Kleros has the solution, Kleros along with these big companies will be responsible for choosing the best team of juries for the situation, only experts in the field could be the decision makers.

So after a long search and investigation, the jury will be able to give their vote and the final verdict, whether these big starts were right or not.

Either of the two options will be beneficial, in case it is in favor of the company, they will get better guarantees knowing that they have Kleros to avoid that an average user wants to take advantage, avoiding problems in the long run. And if it is in favor of the buyer, the companies will then have to improve their system so that in the end they can reduce all possible disputes

For these reasons Kleros is a great option but the best to benefit the big companies and thus help resolve these disputes. There is no doubt that Kleros is the most feasible solution in the market.

The users have the same economic interest when serving as a jury, when doing a good job the jurors receive their incentive.

The way in which they can be chosen as a jury is by means of oneself, using a token called pinakion (PNK), the more chips are deposited, the greater the probability of being chosen as a jury, this is with the purpose of avoiding choosing juries that they are not being active.

"The name is a reference to the pinakion, the bronze plaque that every Athenian citizen used as identification. The pinakion was used as a tab for the selection of the jury in the popular trials of Athens. Most pinakion will be distributed in an event chip distribution, a lower part will be given to the project's contributors and supporters of the initial stage. "

Pinakion Token (PNK)

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Pinakion has two functions that are very important in the development of Kleros, which are:

They serve to protect the system against the attack of the sibyl and also to encourage the juries to vote honestly.

Now, to choose juries we need a random generation of numbers in order to avoid that users can choose among themselves to be sworn, this is possible using a similar scheme to Bünz et al adapted to also work for Proof-Of- Stake blockchains:

1. Initialization, You start with a seed and allow each part to enter its LocalRandom value, this is because you do not want the seed to be chosen by anyone.

2. Computing the master random value, Computing is a very complex, tedious and time-consuming process, thus ensuring that enough time passes between someone getting the seed and getting the result, without the two together they are useless.

3. Getting the results on the blockchain, "It consists of a dichotomous search of the attacker's results".

4. Getting all random values, "After the honest parties have invalidated the results, only the correct result remains."

Source: WhitePaper, Page 5

Votes

Once the jury has been obtained it is time to evaluate and read the evidence finally, once this process is finished the jurors present their vote, Kleros is in charge of preventing the jurors from seeing the vote of another jury until the final moment, avoiding this so that a jury copies the commitment of another jury.

Once the votes are revealed and it is verified that they coincide with the commitment, these votes can not be modified, it is important to emphasize that those who do not reveal their vote will be penalized.

To end this process, all votes are added and the smart contract is executed, the option with the highest votes will of course be the winner.

Source: WhitePaper, Page 11

How does Kleros guarantee equity through its incentive system?

Kleros seeks to keep the juries happy and doing honest work, that is why they have an incentive system.

Each jury resolves disputes in order to charge their fees, juries are also encouraged to perform their duties fairly and honestly, those who do not lose chips which will be granted to juries who do their job well .

The tokens are divided into coherent parts, they are only considered that way if they vote as the majority, there is a great way to encourage the juries to always reveal their votes and is that if they do not they can be twice as penalized.

Source: WhitePaper, Page 9

Kleros and Schelling Coin have something in common and that Kleros's incentive design is based on a mechanism similar to Schelling Coin, but of course with its variations, so that they can respond to enlargement, subjectivity and privacy.

"In Kleros the Schelling point is honesty and fairness"

Case 1

Chris is a mini entrepreneur in charge of sponsoring web pages but he has his own platform where he constantly uploads his own designs, but lately he has been very busy sponsoring other pages since he usually has better income but has left aside his own platform, which he is worried because he wants to have a platform that is known.

Chris hires a web designer to create a great and innovative design for his own platform while he continues to sponsor. Chris offers $1000 to Dylan, Dylan accepts the job, but Chris, being already a connoisseur of the market, decides to secure his agreement through Kleros, only to avoid inconveniences.

The agreement was that in a month Dylan would have the web design ready, that half of what he would show Chris and he would pay $500 in advance, all fine the first two weeks, Dylan did a great job and everything went well.

When the month was finished Chris was eager to see the web design, he was excited to publish on his platform, he thought that Dylan would have the design ready, but it was not like that, the days went by and he did not get answers, the Dylan appeared I had finished no work and said that I could not finish it but that I would not return the $500.

But as Chris was cautious and secured the agreement through Kleros he has the right to win, after he contacted a group of juries expert in the matter and to go to dispute against Dylan, Chris was the obvious winner and thus he was reimbursed. $500 that he had paid Dylan.

Case 2

Peter wants to buy a new smart cell phone, wants to buy a high-end cell phone and turns to a small company in charge of selling cell phones, Peter after long searches finds the cell phone indicated and decides to make his purchase but before securing his agreement through Kleros.

The shipment said that in 3 weeks was going to receive the cell phone at home, Peter impatient and happy to finally have arrived the day he will receive his new cell phone is disappointed to see that nothing came, he thought maybe it was a mistake or problem and that in the following days he would finally receive his cell phone.

The days passed and Peter was already impatient, when he went to see the purchase he realized that the company made the shipment to another person and that they did not make refunds, they would lose their hundreds of dollars because they would not go to a court for so little money .

But then he remembered that he secured the agreement through Kleros, so looking for experts in the matter was a dispute with this small company, after long hours of dispute and review of the problem the jurors voted in favor of Peter, so the small company he had to reimburse Peter for the money.

Kleros has several key points of great value for a better performance in the market, and offer the solution for disputes that big and small companies needed, offering juries experts in the subject, encouraged by a reliable system to guarantee their honesty and with a fairly complete voting system.

The big companies, the small ones and the average person should feel supported from now on as they can count on an insurance in which case they suffer some dispute or some kind of deception or theft. If in these cases some type of dispute arises, they know that they have taken the precaution to secure the agreements they have taken.

It is a very important advance today because there are no juries that can help small businesses or an average person when they are small amounts of money. Now with Kleros there is no need to worry about that, Kleros will make sure that you get a fair decision going to trial regardless of the amount of money that is at stake, what is important here is the reason and try to solve the problems.

The companies and people who decide to use Kleros will undoubtedly take a step forward and may now be more calm and safe knowing that in case of a dispute for any inconvenience they have Kleros to solve any difference. Without a doubt, it is an incredible platform that was necessary to solve the problem of disputes.