Kleros (PNK) ICO Review – ICO Token News
Kleros is an opt-in court system. Smart contracts have to design a Kleros as their arbitrator. When they opt-in, contracts creators choose how many jurors and which court will rule their contract in case a dispute occurs. The idea is that they will choose a type of court specialized in the topic of the contract. A software development contract will choose a software development court, an insurance contract will select an insurance court, etc. Kleros uses blockchain and crowdsourced specialists to adjudicate disputes in a fast, secure and affordable way. Kleros connects users who need to solve disputes with jurors who have the right skills to solve them. Crowdsourcing taps into a global pool of jurors. Blockchain technology guarantees evidence integrity, transparency in jury selection and incentives for honest rulings. The ICO countdown has already begun for this token.
A Use Case
Alice is an entrepreneur based in France. She hires Bob, a programmer from Guatemala, on a P2P freelancing platform to build a new website for her company. After they agree on a price, terms and conditions, Bob gets to work. A couple of weeks later, he delivers the product. But Alice is not satisfied. She argues that the quality of Bob’s work is considerably lower than expected. Bob replies that he did exactly what was in the agreement. Alice is frustrated. She cannot hire a lawyer for a claim of just a couple hundred dollars with someone who is halfway around the world.
What if the contract had a clause stating that, should a dispute arise, it would be solved by a Kleros court? Kleros is a decentralized application built on Ethereum. After Bob stops answering her email, Alice taps a button that says “Send to Kleros” and fills a simple form explaining her claim. About an hour later, an email hits Chief’s inbox: “You have been selected as a juror on a website quality dispute. Download the evidence here. You have three days to submit your decision”. Similar email are received by Benito, a programmer from Cusco and Alexandru, from Romania, who had also activated their pinakion for the dispute. They were selected randomly from a pool of almost 3,000 candidates. They will never know each other, but they will collaborate to settle the dispute between Alice and Bob. On the bus back home, Chief analyzes the evidence and votes who is right. Two days later, after the three juries have voted, Alice and Bob receive an email: “The jury has ruled for Alice. The website was not delivered in accordance to the terms and conditions agreed by the parties. A smart contract has transferred the money to Alice”. Jurors are rewarded for their work and the case is closed.
In order to compensate jurors for their work and avoid an attacker from spamming the system, creating disputes and appealing requires arbitration fees. Each juror will be paid a fee determined by the subcourt where the dispute is solved. The arbitrable smart contract will determine which party will pay the arbitration fee.
Buying half of the tokens
If a party (or a group of parties colluding) were to buy half of the ICO 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. First, half of the tokens should be available for sale, which is not guaranteed. Moreover, the fact that one party could afford all the tokens at current market price does not mean it would be able to buy half of them. Tokens, contrary to most physical assets, have increasing marginal costs. They will be dynamically priced on exchanges, should one party buy a significant part, the price would go up due to market depth making it increasingly more costly to acquire tokens.
Kleros is a general, multipurpose system which can be used in a large number of situations. We present some examples of possible use cases:
Escrow : To pay for an off-chain good or service, the funds can be put in a smart contract. After receiving the good or service, the buyer can unlock the funds to the seller. In case of dispute, Kleros can be used to have the smart contract either reimburse the buyer or pay the seller. Escrows can be more complex. For example for a rental agreement, the renter can be required to pay a deposit. In case the property is damaged and the renter doesn’t agree on a compensation, a dispute can be created by the owner to claim part of the security deposit.
Micro tasking: Decentralized platforms could pay for microtasks (in the manner of the Amazon Mechanical Turk(1)). Taskers would put a security deposit and submit answers to microtasks. The tasks would be replicated. If a task gets different answers, taskers could admit their mistake, this would transfer a part of security deposit to the taskers who performed the task correctly. In case multiple taskers stay on their position, a dispute resolution process would ensue and the losing taskers would have part of their security deposit transferred to the winning ones.
Oracle : A decentralized data feed to be used by smart contracts was one of the early envisioned use cases of Ethereum. A party (which can be a smart contract) asks a question. Everyone can give a deposit and submit an answer. If everyone gives the same answer, it is returned by the Oracle. If there are multiple answers, a dispute resolution procedure ensues. The Oracle returns the answer given by the dispute resolution process and parties who put wrong answers lose their deposits which are given to honest submitters.
Social networks: Preventing spam, scams and other abuses is a challenge for decentralized social networks. Parties can report violations of the network policies and put a security deposit. If the violation is contested, a dispute resolution process ensues. If it is ruled that no violation happened, the reporter loses his security deposit to the accused party. If the violation is not contested or confirmed by Kleros various effects can be implemented: the content can be removed, the content poster can lose a sign-up deposit and the reach of his other posts can be lowered.
- Federico AstCO-FOUNDER, CEO
- Clément LesaegeCO-FOUNDER, CTO
- Nicolas WagnerCO-FOUNDER, WEB3 DEVELOPER
- Sam VitelloDAPP DEVELOPER
- Romina KavcicDESIGN LEAD
- Enrique PiquerasDAPP DEVELOPER
- William GeorgeCRYPTOECONOMICS RESEARCHER
- Addison HuegelPR
- 1April 2018
MVP of Kleros released on the test net
- 2May 2018
- 3July 2018
Start of the first pilot
- 4October 2018
Full version with real use cases
- 5April 2019
Release of version with miltiple subcourts