Kleros: resolving disputes with effectiveness and mastery

Kleros will make it possible to effectively manage the conflicts inherent in the new economies and associated commercial activities that have as a framework the digital spaces in which laws, courts and traditional methods to resolve disputes have no scope or if they were limited by the high degree of specialization of the issues addressed in these instances.

The need to have a trusted third party, one of the foundations of the blockchains, to settle disputes between the parties, led to the opportunity to initiate a project with the participation of recognized professionals in the computer sciences, law, economics, communications and even philosophy.

Although through Kleros practically any type of conflict can be attended to in any area of economic activity, the project will enable a large court that will attend in turn three sub-courts or tribunals: electronic commerce, transportation and insurance.

The courts will be constituted in the manner of ancient Greece by judges wishing to participate in the resolution of conflicts, which would be selected by random drawing and whose performance, to the extent that are consistent with the nature of the cases served, will be rewarded in an effective and attractive way. In this case, that reward would be given by the award of the Pinakion Token (PNK).

One of the keys that provides viability and creates value to the parties in dispute is the access to intelligent contracts with clauses that facilitate the expeditious, safe and reliable resolution of situations as well as providing a starting point for the jury to understand the non-technical aspects: expectations, interest,beliefs, associated with the conflict.

Having a mechanism that guarantees a fair resolution according to the agreed conditions, any small investor or freelancer, has the possibility of going to a court in which it will be attended, their rights will be protected with the opportunity to access the corresponding compensation.

Companies that dominate cyberspace procure and receive thousands of proposals to incorporate into their portfolios of products and services. Decisions about the treatment to be granted to each of these options are based on centralized procedures that, on occasion, tend to violate the rights of the bidders, so the available ones are generated. Through Kleros , large companies can go to smart contracts to define the best way to meet the expectations of the parties.

Kleros guarantees a system of incentives to the jury through two complementary types of compensation, the equitable distribution of the fees agreed between each of the selected judges and the granting of the Pinakion Token (PNK) according to the coherence of the individual decision decision. Consensual as a specialized technical body and third party of trust.

It is possible to visualize in a couple of cases, one for independent entrepreneurs or freelancers and another for large companies, the use of Kleros and its intelligent contracts.

In the case of the freelancer, the origin of the dispute is usually the default of the payment agreed with his client. By activating the smart contract, immediately, the debt would be liquidated and the freelancer, who normally does not have surpluses in his working capital, would mitigate operational risks.

For a large company, whose operations and transactions are numerous, addressing claims from suppliers or customers, would be dynamic when executing intelligent contracts, executing what was agreed without diverting attention, excessively, from the daily routine of its core business.In addition to the applications related to bidding processes or adjudication in the purchase and sale of products and services required by the growing activity in cyberspace, Kleros considers in its design potential to effectively resolve conflicts in other areas in which blockchains technologies are being rapidly incorporated as they are: small claim arbitration, freelancing, crowfunding, social media, intellectual property.

To demonstrate the effectiveness of the proposed model, Kleros has released a test for all interested users Doge on Trial. The term Doge comes from the Greco-Latin root to identify the leader, whose execution procedure is illustrated in the figure below.

Federico Ast presented on July 31, 2018, on Medium , the launch of Doge on Trial, explaining step by step, the interaction with the different actors and how the experiment demonstrates the potentialities of Kleros to resolve conflicts.

This article was prepared by @nadeurdaneta following the invitation of @originalworks, which can be consulted in the following link:

https://steemit.com/crypto/@originalworks/940-steem-sponsored-writing-contest-kleros