Kleros: The Efficient Adjudication for Smart Contracts

Kleros is a system of dispute resolution which can be applied within various fields and situations. This unique system is based on game theory. The coin and incentive methodology used within it renders it transparent, reliable and very efficient. For any issue, that involves two or more entities contenting each other over some terms within a smart contract, Kleros acts as an intermediary for resolving it transparently.

Kleros has a crew of highly capable crew of jurors with expertise in numerous fields of software and blockchain and how the law applies to these technologies. The jurors can select their sub-court, which includes a whole variety from e-commerce and freelancing to transport and insurance. It aspires to develop more to able to cater to other fields that have begun utilizing block-based solutions like games and healthcare. The mechanism of resolving a dispute involves active jurors to be selected based on their staking history of the PNK tokens. The jurors then carefully investigate the case they are selected for. Then provide the decision in the shape of a vote. The number of voters decides on who wins the case. The system is foolproof for taking out inactive and multiple jurors. The honest jurors are compensated with of tokens. The final decision of the jurors is implemented in the smart contract that carries out the conditions of the settlement. Thus, in a very effective and efficient way, Kleros can resolve conflicts arising among entities responsibly.

Kleros can be applied in various areas. For an idea of how diverse this platform is, there are a few model cases provided.
Escrow A smart contract may be devised to buy an off-chain product or some service. After the collection of the said product or service, the consumer can release the payment to the provider. If a dispute occurs, Kleros functions to either refund the customer or pay the provider. For instance, a rental agreement needs a tenant to pay a security deposit. The owner can demand a percentage of that deposit if the tenant damages his property.

Micro tasking There are some platforms that allow users to create microtasks. These are received and chosen by taskers. Taskers deposit a small fee and then provide a response to the task. These tasks are usually reproduced multiple times. If a microtask obtains a response unlike the one provided by the original tasker. The tasker would have to pay their security deposit. This can also include a multitude of taskers providing a response. The dispute resolution mechanism of Kleros would require the taskers who lost to pay the ones who won.

Social networks The decentralized social networking platforms have a huge issue of scams and spams that harass their users. Such networks can use the Kleros platform to resolve such issues. The entities involved can report if a network policy has been violated and provide a deposit. In the event the said violation is challenged, the process of conflict resolution would begin. If it is decided that the violation did not occur, the security deposit would be lost to the defendant. But if it did happen, the reported would be reimbursed not only the deposit but additional settlement money, according to the network policies.
So, Kleros can act as an intermediator to resolve issues within multiple areas of decentralized platforms.