When blockchain started to become popular, primarily it was known for its connection with cryptocurrencies. At the moment, this technology is applied in absolutely different fields: logistics, public administration, e-commerce, videogames, electronic voting, etc. The advantages of blockchain give an opportunity to apply it in different spheres of human activity.
Because of different problems in the field of dispute resolution, new ways to solve such situations become actual. And blockchain can be used in this field, too. One of the first people who noticed it was Vitalik Buterin, who is known as a co-founder of Ethereum. He saw a possibility for using blokchain for the creation of multilevel decentralized court system with randomly chosen jurors. Now we can see the usage of such idea in the project Kleros. Below you can see the book which is dedicated to the specifics of this project.
Kleros project was founded in 2017. Within the project online platform was created. It is designed for dispute resolution. Blockchain and crowdsourcing are used within this platform. Kleros gives an opportunity for disputes resolution in different fields: e-commerce, bounty payments, community certification of professionals, moderation of content, and so on. How does this process go on?
Disputes are resolved on the base of determined rules which are analogues of laws. Disputes are solved by independent jurors who are chosen by the platform randomly. An opportunity to become a juror is given to that people who have the Pinakion (PNK) tokens.
Decentralized applications (dApps) are created on the platform in order to resolve disputes in different fields. When a dispute appears, its participants can create smart contract and choose Kleros as a platform for verdict procedure. The sides of conflict choose a suitable subdivision of platform and the amount of jurors. The information regarding dispute is encrypted and sent to jurors. Jurors stay anonymous. It helps to avoid prejudgment and bribes.
When the team of jurors is ready, they start to study information about the conflict. Then, they vote in favor of one participant of conflict. They vote for a certain verdict that was noted in smart contract in advance. Its enforcement is executed automatically after vote counting.
Losing party can appeal. The case will be considered again, and the amount of jurors will raise. Jurors whose verdict was appealed, lose payments. So, jurors try to motivate their verdicts.
You can get more information regarding Kleros here: