KLEROS: The Ideal Solution

ighoboss (32)in #blockchain • 6 years ago

INTRODUCTION

It is 100% true to say Dispute is inevitable in human nature at large. Dispute, which is "a conflict or controversy; a conflict of claims or rights; an assertion of aright, claim, or demand on one side, met by contrary claims or allegations on the other" are natural parts of any interaction. It can clearly be said that everyone has been involved in a dispute one way or the other, that is not excluding me ☺.

Okay let me take this time to share one instance of my dispute involvement. When I was much younger we stayed in a public compound where all the children do come out in the evening after school to play different games, I was a lover of football but most times I prefer playing table tennis reason been that there was a girl in the compound that was so good at it and was generally called the champion of table tennis, smiles, me been so adventurous was keen on taking the title from her, so I challenged her to a championship match which caught the attention of the other children even some parents to take time out to watch us 😁, it all started good for her as she was leading only for me to turn the table around at the die minute to caught the victory ✌, to cut the long story short I was now referred to as the king of table tennis which made her really mad at me because to her I choose to challenge her knowing fully well I was more into football, it was so funny how we didn't interact for over a year before a friend taught it wise to reconcile us, of which we became friends again and lived happily ever after 😁.

Sharing my story is a way to show that dispute is really inevitable in the society. Some disputes are handled through an amicable conversation, while others can be dreadfully long and painstaking for both parties involved and it clearly shows my stage during my dispute.

In the current state of dispute resolution, there is no cost-effective and fair solution, freelancing websites often have poor resolution protocols that lead to an unfair assessment by an unqualified individual in taking judgement. In some other cases, there is simply no resolution protocol at all, leaving one of the parties with a complete loss. As the number of individuals offering services continues to grow, it is only obvious this problem will only get worse.

We are living in a world where everything that has an disadvantage also has an advantage. With the vast cases of dispute, there is a decentralized service that connects disputing parties to experts in the field giving the experts the right to vote on who is correct in a dispute, with joy in my heart I introduce you to Kleros.

INTRODUCING KLEROS

_{Image Credit : Kleros}

Kleros is a decentralized opt in dispute resolution platform network of jurors specializing in various categories who are available to settle disputes.

Kleros is a decentralized application built on top of Ethereum that works as a decentralized third party to arbitrate disputes in every kind of contract, from very simple to highly complex ones. It relies on game theoretic incentives to have jurors rule cases correctly. The result is a dispute resolution system that renders ultimate judgments in a fast, inexpensive, reliable and decentralized way.

Kleros is a system that stands as an arbitrator to smart contracts in case there arises any dispute until the contract is done with. Before two individuals starts a contracts, they get into an agreement before the commencement of the contract, this contract is therefore guided by Kleros until the contract is fulfilled to make sure dispute does not arise. And if any such dispute occurs, then the Kleros court takes over to settle it with evidence of agreements been entered by both parties.

HOW KLEROS BENEFITS SMALL BUSINESSES

It is usually hard for small businesses to pay court fee and to bring a lawyer into a matter.

So while using Kleros, small businesses will profit the skillful jurors to resolve the disputes between them and so therefore, the emergence of Kleros has helped to reduce cost and also deal with the situation in a more fast and simpler way.

HOW KLEROS BENEFITS LARGE CORPORATIONS

Kleros which is a decentralized dispute resolution platforms benefits large companies e.g. eBay, Amazon etc in resolving disputes more better than the non-decentralized way. Lets use an example as a case study;
When ordering items from ''eBay'', most times packages doesn't get to my destination on the specified time and date which was stipulated. In this case scenario, the cost of sueing them to get my cash back will be so much that it is better to accept it that way, with this taking place, I will definitely loss trust and hope on them.This is why EBay as a case study can make use of this Kleros
platform to boost customer confidience due to the smart contract system in Kleros. With this, clearly they will have increased number of customer and increase their net profit.

KLEROS ENSURING FAIRNESS

A case scenario was been considered when there are five jurors between "A" and "B" and four chooses "A" and one chooses "B"like it was clearly said in the post that the jurors are properly compensated and they also lose tokens if a judge is considered to have voted incoherently this therefore makes judgement free and fair which is generally a good ideal.

But come to think of it, this does not entirely ensure fairness reason been that if wrong decision is based on loss of token, the jurors would not be able to vote with independently with justice because of fear of losing tokens which might lead to joining the majority vote.
This in turn can be resolved by investigating an incoherent vote before taking actions.

KLEROS WORKING PRINCIPLE

The working principle of Kleros is made up of subcourts defined by categories, when two individuals/parties wish to enter into a contract. Upon the creation of the contract, the parties involved would select the details of their Kleros integration.
This court comprises different Jurors that are also specialized on the nature of the type of court. There will select number of jurors,
category of contract (subcourt),
Outcomes, thereby in this case If or when a dispute arises, the jurors will be presented with a number of possible outcomes from which to choose from.

General Court

DOGES ON TRIAL

Kleros has launched a trial version of how the Kleros court works; the Doges trial. In this trial, Jurors test their ability to identify if image they see is a doge or not.

KLEROS INCENTIVE SYSTEM

The incentivization system at Kleros ensures that while dispute resolution costs are low and the juror system is also able to deduce good jurors from poor jurors. For example, if there are four 4 jurors, with outcome options "X" and "Y". If three choose "X" and one chooses "Y", then option "X" will win. In this case, the one judge who voted "Y" would be considered to have voted incoherently.

KLEROS USE-CASES

I will be making practical cases which I really a witness to for better understanding of each scenario.

CASE 1;

As an Engineering student of the University of Benin, Benin City, we usually perform Engineering Laboratory Exercises (ELA) twice a week which is really stressful to say, so some lazy students who are really fed up with the laboratory exercise then to pay some other course mate to perform the exercise for them. Money been involved, some students tend to overlook the stress and perform two experiments and also write the reports on them for the pay pay😁.

These practices are majorly done by two of my friends and course mate Issac and Tejiri, so what they do basically is look for other course mates who are willing to pay then they book collobo and help run them no matter how many there are. On these faithful day, unknowing to Isaac, Tejiri has him at heart simply because he Isaac used his 1.5gig data on share via glo without Tejiri knowing only to call customer care service and found that it was Isaac that used it.

All said and done, after the commencement of the exercise, payment was made directly to Tejiri's account because he is the one that majorly gets the client, but this time around he refused to pay Isaac his share for simply using his data without his consent which then resulted in a serious dispute which was at the end resolved by my humble self.

Had Isaac secured their agreement via Kleros, there would’ve been a panel of judge which happened to be me that could’ve helped to settle this dispute. But clearly without it, Isaac lost his share of the money.

CASE 2:

My Uncle who stays in Manchester City decided to put up and investment through a house here in Nigeria, so he contacted my dad to be in charge of the supervision of all that happens and also take the responsibility of hiring workmen and make sure things are done fast and perfectly.

The building of the house progress from digging of foundation to roofing level there about, then it was time for a capital to be called upon to make and fix the doors before interior works can be done. On that note, my dad called one of his friends who he knows is good at it. Billing of about #200,000 was made for labour and materials and also guaranteed my dad that it will be done between the interval of two weeks. Kleros was used to put into place a smart contract that safeguards them in the case that he is not able to perform his duties, in that respect, a payment of #50,000 was made. A week went bye only two 2 doors has been fix to the surprise of my dad he pulled a call through to him only for him to say he hasn't been feeling too well, second week came and went still no improvement, my Uncle not happy of the situation on ground pulled a call through by himself only for the man to say he has been busy.

No problem! My dad starts a dispute through Kleros. They send in a copy of their agreement as well as before and after pictures. Their contract states that there will be five jurors specializing in renovations and their options set as follows:
A. Return entire sum to CoolHats
B. Pay entire sum to contractor
C. Split 50/50

The verdict comes back in a week, with all five out of five jurors choosing option “A”.

Instead of having to deal with an irresponsible second party or go through any official dispute channels, they are able to resolve this issue quickly and efficiently. The system is guaranteed by smart contracts so the verdict will result in an instant refund! And here the issue was resolved that quick and easy.

CONCLUSION

It is note worthy to say that Kleros has a really vast function than cannot be over emphasized
ranging from Small business getting to benefit from Kleros since they now have a platform that can handle any dispute that may arise in their small transaction cases. Large corporations are not left out, as Kleros can also effectively and efficiently manage all disputes that may arise at a low cost by ensuring fairness.

THE TEAM