KLEROS - The Blockchain Dispute Resolution Layer

steallion (61)in #originalworks • 7 years ago (edited)

Kleros provides fast, secure and affordable arbitration for virtually everything.

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 decision protocol for a multipurpose court system able to solve every kind of dispute.It is an Ethereum autonomous organization that works as a decentralized third party to arbitratedisputes in every kind of contract, from very simple to highly complex ones. Every step of thearbitration process (securing evidence, selecting jurors, etc.) is fully automated. Kleros does not rely on the honesty of a few individuals but on game-theoretical economic incentives.

It is based on a fundamental insight from legal epistemology: a court is an epistemic engine, a toolfor ferreting out the truth about events from a confusing array of clues. An agent (jury) follows a procedure where an input (evidence) is used to produce an output (decision) (15). Kleros leverages the technologies of crowdsourcing, blockchain and game theory to develop a justice system that produces true decisions in a secure and inexpensive way.

How Does Kleros Work?

Kleros connects users who need to solve disputes with jurors who have the skills to fairly settle them. Our resolution layer uses blockchain technology and crowdsourced jurors to adjudicate disputes in a fast, secure, and affordable manner.

A Use Case - " Content taken from https://kleros.io "

Arbitration : A freelance job is contracted between two people working cross continent. The service is not rendered to a satisfactory standard and a jury of experts analyze the evidence, vote, and find a verdict.
Social Media : An unpleasant comment posted in a decentralized social media platform is deemed to have broken terms and conditions. Kleros jurors rule to deduct reputation points from the user.
Gaming : Online gaming is a growing market with superstar players. Professionals will require a highly skilled group of jurors to arbitrate disputes, and for the provision of safe spaces to play in.
Crowdfunding : A startup backed by crowdfunders never materialises a viable product. The funds have been locked in a smart contract escrow adjudicated by Kleros jurors and are returned to the investors.
E-Commerce : A product purchased online does not meet the advertised standard. Kleros adjudicates in favour of the buyer and a smart contract returns the funds.
Oracles : “Did it rain in Ulaanbaatar today?” An oracle bridges the gap between the outside world and blockchain allowing smart contracts to use real world data in their outcomes.

Kleros Is Attack resistant :

Buying half of the tokens : If a party (or a group of parties colluding) were to buy half of the tokens, it would control the results in the General Court and therefore could ultimately decide all results. However, having a party buying
more than half the tokens is highly unlikely if these are fairly distributed.
Bribe Resistance : Appeals are an important mechanism against bribes. Bribing a small jury is relatively easy. But since the victim always has the right to appeal, the attacker would have to keep bribing larger and larger juries at a steeply rising cost. The attacker would have to be prepared to spend an enormous amount of money to bribe jurors all the way to the General Court and would very likely lose in the end. To control the verdict of the whole court, the attacker would need to bribe token holders holding more than 50% of the pinakions in total.