One of the biggest issues people find in relation to smart contracts is that they are not really smart (enough) and they aren't really contracts in a lot of jurisdictions and because of that, there are a lot of other agreements that need to be written either way because, the smart contract is not smart because of the fact that it doesn't have that human behavior, it doesn't know all the information and if something was to come up that wasn't actually covered in the contract, there would be no way to actually apply that evidence.
Oracle's as you may be aware are helping with external information and pushing that into smart Contracts which is a great thing but unfortunately, if they are not added at the point of contract creation between two parties or more, it's not going to be fed in. That metadata or that real world information is not going to be passed into that smart contract making it impossible to argue either way who was right or wrong and to believe in the smart contract we need another way to dispute that. So a lot of the time, blockchains use some form of written agreement still on top of the smart contract and the smart contract is effectively just executing it to the point at which it may fail.
Kleros is a blockchain-based dispute resolution layer. Now what does that mean? Kleros is effectively giving a court or an arbitration system to smart contract and blockchains. As stated on the Kleros website, Kleros provides a fast secure and affordable arbitration for virtually every thing.
PROJECT OVERVIEW
Kleros is an Ethereum based DApp that runs a decision protocol. It effectively gives a court system to any form of dispute resolution that may be needed. It's a third-party arbitrator that enables a multi-purpose court system. This multi-purpose court system is actually something that has to be opted in by users or jurors in this circumstance. So what it actually is doing is making sure that people that are adjudicators as such of these particular disputes or cases have opted in and they are a part of that particular court system. These jurors could as well be professionals in that area. With this method a good outcome is ensured because the people are opted in; they've chosen to be selected as a part of this process. This system is based off something from Thomas Schelling (2005) called the Schelling point system. Now if you're not aware of what that is, effectively, what it is is; if you were to give a group of people a task to meet up somewhere in New York, where would they pick? It's called the focal point. What would be at that focal point that those people will go to. Well if nobody knew each other, the focal point is something that most people are going to pick so they might go and pick a well-known location that everyone would possibly know if they were in that area. So it's basing it off this system because that is what people are going to do when they are presented with this particular format of information, they're going to pick what is most likely to be correct based on the information provided. There's also a Schelling coin that Vitalik talked about and has built out and written a paper for.
Kleros uses the game theory incentivization protocol. Like a lot of projects in the blockchain space, we want to incentivization and decentraliz individual parties to make sure they are obviously adhering to particular factors or obviously they are participating where we need them to participate. It enables simple and complex contracts because at the end of the day, it's an arbitrator it will enable you to fulfill whatever you need to do in your contract and if something goes astray, you'll be able to call upon the Kleros project and their process. It enables an appeal process and it has an incentive system.
SO WHY KLEROS?
Wherever there is some form of contract, or something taking place that you may need to dispute, Kleros can be utilized.
ESCROW
If there was a particular payment that needed to be made or money to be held and something was found to either be not true or something needed to dispute such, you could do that through this process.
ORACLES
So when information needs to be fed back into a smart Contract if people could actually vote on whether or not that information was correctly passed in, we could use that in this instance.
INSURANCE
An automated insurance policy where something was meant to happen at a particular time and for example it didn't, we could utilize Kleros.
MICROTASKS
Let's say you've paid a freelancer or something like that to do some work for you but he doesn't do the work well enough, you can utilize the Kleros protocol to initiate an arbitration system.
DECENTRALIZED SOCIAL NETWORKS
In a situation where somebody might be performing a scam on the network, you can build in this Kleros smart contract beforehand to allow people within that network to vote out bad content that obviously could be affecting the community as a whole.
COURT OVERVIEW
The general court is the largest of all the courts, however, you might feel you want your particular dispute looked at by a particular sub court. Now this would make sense in terms of if there are professionals in these sub courts obviously that can assist you
TEAM
From the team perspective they have the founders, Federico, Clement and Nicolas. Now I've had a look through the profiles, they do have a range of experience in terms of economics, philosophy e.t.c The team does seem very young specifically Sam Vitello, the DApp developer who just recently graduated from the University. Now this is neither a positive nor a negative factor. It's just my mere observation.
TOKENOMICS
The token is one of the first projects to use what is known as an interactive coin offering. The native token of the Kleros project is the Pinakion (PNK) Token.
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