What is Kleros (PNK)?
Kleros (PNK) is an open-source online dispute resolution protocol that uses blockchain and crowdsourcing for fair arbitration of disputes. The development efforts are coordinated by Coopérative Kleros, a Coopérative D’Intérêt Association (SCIC) established in France. All of our code research and development is open source and free for everyone to use. Kleros is a decentralized application built on the Ethereum platform that acts as a decentralized third party to arbitrate disputes in all types of contracts, from very simple contracts to complex ones. It relied on game theory motives to have jurors judge the cases correctly. The result is a dispute resolution system that quickly, inexpensively, reliably, and decentralized to final decisions.
The Kleros is a general and multipurpose system that can be used in a wide variety of situations. Some examples of possible applications include:
• Escrow: To pay for off-chain goods or services, the money can be put into a smart contract. After receiving the goods or services, the buyer can transfer the money to the seller. In the event of a dispute, Kleros can be used to request a smart contract to refund buyers or pay sellers. Such a Kleros-based escrow system is available. Margin can also be more complicated.
• Micro tasking: Decentralized platforms that can pay for micro-tasks. The missionary will place a security deposit and submit answers for the microtasks. The missions will be replicated.
• Insurance: The insured pays a fee to the insurer for compensation in the event of a particular event. The insurer will have to place some security deposits that may be common to many insured (respect risk management rules). When an insured event occurs, the insurer can confirm and indemnify the insured.
• Oracle: The decentralized feed used by smart contracts is one of Ethereum’s early envisioned use cases. One party (possibly a smart contract) asks a question. Anyone can make a deposit and submit a reply.
• Curated lists: List sorted can be a whitelist or blacklist. For example, a whitelist might list smart contracts that have performed appropriate audit procedures. Blacklisting may list ENS (Ethereum Name Service) names registered by parties that have nothing to do with that name. Parties may submit items to the list by placing a security deposit.
• Social Networks: Preventing spam, phishing, and other abusive behavior is a challenge for decentralized social networks. Parties may report network policy breaches and security deposits.
What is the PNK token?
The PNK token is an Ethereum-based ERC-20 token: it is a utility token with a fixed supply (1B unit) that cannot be replaced with ether. Kleros has built economic incentives so PNK token holders can hope to make a profit through their work (by becoming a Jury, thus earning arbitration fees) or by way of betting on the development of the Kleros project and therefore of the arbitration case.
Use cases of Kleros
Kleros is designed to be a versatile dispute resolution platform and can function as a legal arbitration service in many cases. Important types of cases include escrow dispute resolution, violation of social network policy, and oracle resolutions.
For escrow names, this applies to countless instances of goods or services exchanged within mediums off-chain. Kleros may settle disputes between employers and employees, rental contracts, or insufficient merchandise for sale on the online store.
Social media policy violations include spam prevention and mitigating policy breaches by requiring users to deposit money before the incident begins. Kleros can directly resolve the dispute, or if the context is not clearer, other options that persist like removing content can be specified directly in the smart contract.
Ultimately, oracles provide an interesting use case for decentralized feeds used by smart contracts to get information from the outside world. With Kleros, one party can submit questions, and people can submit answers with a deposit. If the answer is yes, it will be returned by the prophet; otherwise, Kleros dispute resolution will occur. The oracle then returns the resolution decided by Kleros’s dispute resolution process.
The team behind Kleros is led by co-founders Frederico Ast (CEO) and Clement Lesaege (CTO). Their token sale is now live and is one of the first, if not the first Interactive Coin Offerings launched by Vitalik Buterin, Jason Teutsch, and Christopher Brown as an improvement to the traditional ICO.
Kleros is a decentralized dispute resolution project that is part of the “structural” projects related to decentralized applications (Dapps). Kleros provides intermediary services for Dapps and its users. If the service provided by the application does not create a dispute, Kleros acts only as an untrusted third-party service for payment (escrow). Kleros is specifically designed for Dapps as its primary audience; still, one can imagine that a decentralized, reliable, and relatively cheap arbitration system would appeal outside of the traditional blockchain ecosystem.
You can check the PNK price here.