Kleros is the Conflict Resolution Platform for Blockchain.

Kleros is a computerized court system that deals with the disputes ensuing in the operations concerning a smart agreement. Kleros has designed an approach towards conflict resolution which involves conditions within the contract about any future dispute. The entities that agreed to the contents of the smart contract can contest each other in case of a disagreement. If the entities decide on taking their dispute to the digital court of Kleros, then the Kleros jurors would settle their conflict.

Kleros has a pool of jurors, all of whom have expertise in different software technology including blockchain, with a knowhow of the laws regarding the use of these technological platforms across international borders. The system of Kleros works on a token system. The tokens are named pinakion or PNK. Pinakion denotes the identity system of Athens, where it was utilized as a memento for the selected jury members in the famous trials.

The jurors in the Kleros are rewarded with tokens every time they cast their votes for any dispute. They stake these tokens to be chosen for further disputes. If they don’t stake the coins, they are not drawn for any more conflict decisions. In this way, the jurors who are inoperative or the jurors with multiple accounts are rejected and expelled from the system. Ultimately only the honorable and reliable jurors are left within the system.

The members select their specific sub-courts and stake their tokens. The number of tokens a juror staked and the number of disputes he or she has been previously drawn for ascertaining the number of votes he or she gets for a specific dispute. The honest jurors are paid back in tokens. This is the application of game theory in the Kleros system.

The game theory applied to two parties has been known to be deceived by an attacker who could generate a dispute between his own created two accounts, choose his accounts as jurors and also ultimately pick out another juror as a prey. If he organizes the votes methodically, his prey will suffer and lose all the coins, seen as an incoherent juror. But, Kleros utilizes block hashes of Ethereum to choose jurors at random. It is difficult to foresee these values in advance. It also plans to integrate the proof of work protocol within it make it practically impossible for fraudulent voters to work their way in.

The jurors are compelled to thoroughly evaluate the proof provided by the entities involved and then cast only one vote. They deliver the vote in the form of hash. It comprises of the vote, the salt, and the address. Salt is an arbitrarily generated value to eliminate the possibility of a rainbow table. The hash also involves the address, which is the Ethereum address given to each juror. The address makes the commitment of every juror specific and unique. At the conclusion of the dispute, the votes are disclosed, which show the vote and the salt, which are cross-matched with their respective addresses to certify the commitment of the juror. This is done via a smart contract created by Kleros to fine any juror unable to reveal the vote. All of this remains visible to the system and they remain anonymous.