An Introduction to Kleros
No matter how amicable you are, if you are one to delve into public dealings from time to time, then chances are that you might either experience or have already gone through a situation of conflict in your lifetime.
While such scenarios are often talked through between the involved parties themselves, sometimes, the pertaining complications or the simple nature of the conflict requires pertinent entities to turn towards a third party to seek a neutral observation and subsequent decision on their dispute.
These circumstances are often prevalent in business, legal and even personal settings, but these days, they are noticed the most within online staffing platforms, where arbitration gets to be the primary process of dispute resolution for a disgruntled client or an underpaid freelancer.
Simply put, the existence of disputes can be identified through any walk of life, and while services to resolve these problems are also available in most settings, they sometimes leave a lot to be desired in terms of affordability, professionalism and most of all, transparency to ensure that the arbitrator is not biased towards a single party for whatsoever reason.
This makes the process of finding a good arbitrator just as difficult as the situation that the parties might be in, which creates an opportunity for services that specialize in this area.
That is why, the process of arbitration has transcended from small-businesses to large-scale law offices and then to online conflict-resolution services, and it still remains a highly sought after industry for those who appreciate how important its services deemed to be.
Therefore, it was just a matter of time before this procedure got to act in blockchain technology, the next generation of the web.
The venture that has made this possible is Kleros, which is a blockchain-based “dispute resolution layer” that aims to resolve conflicts through the way of the modern-age.
What is Kleros and What Does It Do?
Kleros is a decentralized platform that specializes in providing arbitration services for conflicts pertaining to all walks of life.
The platform also remains affordable, accessible and perceptible to resolve all the issues that are brought over to it.
The project does not only employ the transparency of blockchain in a technological sense but implements it in a tangible setting where it can benefit the cause for which it has been created.
Based on the Ethereum blockchain, Kleros aims to function as a neutral third party to conflict resolution by leveraging the usage of smart contracts on the Turing complete network. This allows it to facilitate resolution processes effectively for all kinds of disputes, no matter how simple or complex they get to be.
Primarily, Kleros works as a third party court system where it
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.
an be accessed in case someone’s deal with another party goes awry in any scenario. From here, either person can contact Kleros and have the arbitration process initiated.
Upon the agreement of both parties to use Kleros as their arbitration facilitator, the process is initiated accordingly.
Similarly, Kleros can also be designated as the go-to arbitrator in pre-signed agreements for any setting. This way, if a situation turns murky for any party involved in the agreement, then they can simply opt to take the issue to the arbitrator which by default would be Kleros.
From here, Kleros randomly selects jurors from all over the world based on their verified skill set, sense of judgment and overall portfolio in the desired setting.
Once the jurors – that have no connection to either party – have been selected, the case is presented to them along with provided evidence in order to seek their verdict.
Once the jury rules in the favor of either party, they are informed accordingly and the resolution is saved on the blockchain in a transparent format for everyone to see how the jury reached their decision.
While anyone can opt to be a juror on the Kleros platform, they have to provide relevant credentials in order to prove their prowess and be able to serve on the jury at all.
Once the candidate has been vetted in a decentralized manner, said applicant becomes a juror and can pass verdicts on assigned cases that belong to their area of expertise.
For instance, if someone has a degree and proficient experience in the marketing industry, then they will be assigned disputes related to a botched up marketing job or a violated agreement in a marketing campaign instead of having to resolve real estate or family disputes.
This process ensures that the decisions being provided through the Kleros platform are valid and could be respected by all parties since they would come from a proficient authority in the respective industry rather than a pedestrian.
In order to become a juror on a presented case, proposed individuals can offer their services by depositing funds with their virtual application.
This shows each individual’s level of focus and seriousness towards the process and keeps it clear of bad actors and malicious parties. Kleros then compensates the experienced jurors for their time and the decisions made accordingly.
The processes of initiating agreements, hiring jurors or serving as a juror on the Kleros platform are facilitated by the network’s native token, which has been dubbed as Pinakion.
About the Kleros Pinakion (PNK) Token and Its ICO
The Pinakion (PNK) is an ERC20 token which fuels the core functions on the Kleros platform, ranging from paying for arbitration to participating as jurors and for the jurors to get compensated for their time and expertise.
There will be a total of 1 billion (1,000,000,000) PNK created, out of which 16% (160 million) will be offered in the first round of crowdsale, with a set percentage following through in later rounds.
The token allocation for PNK is outlined below.
16%: Initial Round for Token Sale
50%: Subsequent Rounds and Juror Incentive Program
12%: Kleros Cooperative Development Reserve
The first round of token sale is currently live, beginning on May 15, 2018, and scheduled to end on July 15, 2018.
The team behind Kleros seems proficient and consists of individuals that hold notable experience in their respective fields of development, programming and project design.
Kleros has three co-founders in Federico Ast, Clément Lesaege, and Nicolas Wagner who serve as the project’s CEO, CTO and Web3 Developer, respectively.
The concept behind Kleros seems powerful and has a clear target market for it. That coupled with its proficient team and the detailed whitepaper make it a viable project which should be on the radar of those who are looking to invest in next-generation blockchain solutions that would be taking our current method of operations in various segments to the future.
However, as with other modes of investment, potential investors should keep their financial status in mind and only invest money that they could afford to lose in case of a mishap or the project not performing as they expected it to, since the blockchain industry is still finding its footing and no matter how good a project sounds on paper, its real-world execution could go either way.