Introduction

Since the world is world, there are differences and nonconformities, as human beings we have a series of specific characteristics that define the personality, hence the preference for colors, characters, activities, way of working, among many others; Taking into account that good communication is the basis of any relationship, it is important to emphasize that when doing business and reaching agreements this plays a very important role that in turn triggers conflicts and disagreements in daily life, some stronger than others.

When a problem arises it is necessary to find a solution, for that there are the adjudicative processes, such as litigation or arbitration, where a judge, jury or arbitrator determines the result of the disputes that are presented before their services, in addition, the consensual processes, such as collaborative laws, mediation, conciliation, or negotiation, where there are attempts by the parties to achieve agreement and solutions to the problems presented.

At present there is a lot of business movement not only in the secular but also in the digital world, from large companies to individual traders make use of technology to link at a global level, this is positive until the disagreements and / or complaints come operational, technical or compliance reasons leaving gaps in the resolution of conflicts since they can not be managed by existing methods, generating millions in losses to investors.

According to the above and in order to find a solution for the global, digital and decentralized economy in an objective, safe, fast and efficient way to ensure the success of the resolutions, Messrs. Federico Ast, Clement Lesaege and Nicolas Wagner together a great team of workers created KLEROS.

What is Kleros?

It is a decentralized application built on Ethereum that works as an Arbitrator connecting users who need to resolve disputes with juries that have the skills to solve them fairly in all types of contracts.

Kleros, bases its principles on the technology of Crowdsourcing, Blockchain and the theory of games; allowing a global group of juries to take advantage, in addition, guarantees the integrity and transparency of the evidence in the selection of the jury and in turn provides incentives for honest decisions, resolving disputes quickly, safely and affordably.

Origin of the idea of incentives and token.

This idea is born from the achievement of Schelling Coin, a token created by the founder of Ethereum Vitalik Buterin and used to reward people with economic incentives for telling the truth with the value of honesty as a priority, Kleros, I use this principle by modifying and adapting it to scale, subjectivity and privacy to make agents participate in proper behavior during the execution of their functions and be economically benefited by that.

"In ancient Greece, a pinakion was a small bronze plaque used to identify a citizen of a city. Pinakia for candidates for political office or for jurors were inserted into randomization machines (kleroteria)." Source

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How does Kleros guarantee equity through its incentive system?

Mainly the juries who vote consistently being honest and with high quality in their work will earn money, on the other hand, poor quality and dishonest jobs will lose money.

1- Arbitration fees are required to create disputes and appeal. Equally, a fee determined by the sub-court where the dispute was executed and resolved is distributed to each jury. This is determined by the arbitrable intelligent contract which is what indicates which party will pay the arbitration fee.

2- "In appeals, both parties must deposit the arbitration fees. The appellant also has to deposit an additional share proportional to the appeal fees that will be awarded to the winning party dispute. Thus, if a party makes frivolous appeals to harm the opposing party, the party's opponent will get compensation for the loss of time, while if it is finally ruled that the appeals are legitimate, the bet will be returned to the appellant."

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Cases of uses.

Arbitration:

In independent jobs where two people handle a conflict, the Arbitration service is rendered, where a group of experts in the field consolidate a jury analyze the evidence, vote in an objective manner and produce a verdict.

Social media:

Maintaining always the health in the digital ecosystem, the unpleasant comments and out of context that are made public, missing the terms and conditions. The jury of Kleros decide to deduct points of reputation of the user.

Gaming

In the world of online games there is an extreme exponential growth, the multitude of players, among them the best, require a group of highly qualified juries, there enters Kleros, to arbitrate disputes and for the provision of safe spaces to play.

Crowdfunding:

A startup supported by crowdfunders never materializes a viable product. The funds have been blocked in a security deposit of a smart contract awarded by the jurors of Kleros and returned to investors.

E-Commerce:

A product purchased online does not meet the advertised standard. Kleros awards in favor of the buyer and a smart contract returns the funds.

Oracles:

"Is it raining today in Ulaanbaatar? "An oracle closes the gap between the outside world and blockchain by allowing smart contracts to use real-world data in their results.

How Kleros works?

Contract

Users interested in solving their disputes create an intelligent contract where Klero is selected as the intermediary entity for the resolution of them.

Dispute

All the information related to the case in question is sent to Kleros, they maintain an excellent code of ethics that generates security at the moment that the client provides as many evidences as possible to proceed to an objective and effective analysis.

Selection

During this process, a random court is selected and it depends on the amount of token that is invested, the greater the investment, the greater the possibility of being selected. After this the members evaluate the evidences and issue their respective votes; Those who match will be rewarded.

Application

After reaching the resolution of the case, the decision is ruled by the intelligent contract.

Conclusion

Kleros is a general and multipurpose system that can be used in a large number of situations generating effective solutions that allow both people and companies to have a stability and tranquility in the operations they perform as well as decentralized judicial system through the arbitration of intelligent contracts supported by jury teams that are dependent on economic incentives, also significantly impacts social networks. Insurance, Micro-insurance, Escrow and others; Preventing by its high potential the unwanted mail, the scams, compensation in the event of an event, among other benefits.