![kklle.png](https://cdn.steemitimages.com/DQmPAqdoa8KkRFSoEiP2P4vTemfCqfCR9Gdnu6acPypxTXD/kklle.png)


The world is fast becoming a global village. With one person able to reach  and interact with another who is a million miles away through the internet. There can be no two views about how this connectivity has given rise to a multitude of opportunities; not only for the small and up-coming business people but for established business houses also. 

**What is the one concern in the mind of a person executing work for a client far away in a foreign country?** 
PAYMENTS
And this is as TRUE the other way around, the problem is of - PROPER EXECUTION

KLEROS is the platform that has stepped up to bridge this gap- **by evolving an agreement where the two parties give the experts the right to vote on who is correct, in case of dispute.** Federico Ast teamed up with Clément Lesaege and Nicolas Wagner to set up *Kleros.io*

 Federico Ast  graduated in economics and philosophy and went on to get a PhD in management, he developed the concept of *Crowdjury* , the use of collective intelligence and blockchain to transform justice systems. This is very much needed now in the blockchain universe with hundreds of sites coming in contact with millions of users and generating contracts everyday. Just the presence of an honest arbitrator with no compromises on data privacy will ensure a great degree of faithfulness by all parties concerned.

Kleros.io may well be the nub around which the crypto-judicial world evolves. But Kleros is useful even in everyday situations where the amount disputed is not high enough to bare the trouble of going to courts. An example to explain this will come later.  

![kkll.png](https://cdn.steemitimages.com/DQmQTECJPywCCyt6nCqu5ceM318rFmXRcLD5fYskKX9wdRb/kkll.png)  *A grab from the live feed of Crypto Consensus 2018  Federico Ast and  Clément Lesaege*


The thinking behind Kleros can be summed up in a phrase Federico used **" Peer to Peer Justice"** . This is what Kleros accomplishes. Their Whitepaper introduces Kleros: *" a dispute  resolution  system  that  renders  ultimate  judgments  in  a  fast,  inexpensive,  reliable  and decentralized way."*
A buyer can make a payment to a smart contract or an escrow account with Kleros and the seller has to voluntarily accept this. If there is no problem, money is released to the seller minus a small fee. If a dispute arises, Kleros will make the decision. Buyer and seller, BOTH THE PARTIES ARE BOUND because funds are held in escrow. Compared all other arbitration systems now available Kleros is much faster, simpler and cost effective. Additionally Kleros can affect enforcement of contracts through it's partner organizations worldwide.
What makes Kleros fast and reliable is the completely automated procedure once a smart contract is in place. The contract with Kleros as the arbitrator will have to be accepted by both parties. Then they can decide on the number of jurors and which court they would want to submit to. Yes! there are a number of different courts which will be attended by jurors who are expert and experienced in the relevant fields. Here is a graphic from the [whitepaper](https://kleros.io/assets/whitepaper.pdf)

![](https://cdn.steemitimages.com/DQmUJXJ4TVYcUiDdp2gMVwu2munu39sWM95UR9EfSjGcwXm/image.png)

Further the smart contract can also specify multiple options for the jurors to select- "Pay full amount to party1", "Pay only 50% to party1", "Return money to party2", etc.

Kleros incentivizes jurors by  the use of Pinakion tokens -PNK. To put it simply; the jurors get more tokens for better work.
Is this system so new? Absolutely not! Though it is adapted to today's hyper-connected environment.
Here is an excerpt of the article in [Forbes Magazine](https://www.forbes.com/sites/kimjay/2018/04/04/in-the-future-blockchain-will-solve-most-real-world-problems-even-arbitration/#183e650ebd2f)
"(In ancient Greece..)On trial days, Greeks who wanted to be on the jury would take a bronze plate called a pinakion to court and place it in a big stone block with many slots called a kleroterion. This word inspired the name for Ast’s company: kleros is “chance” and terion roughly translates to “altar.” Therefore, kleroterion is the “altar of chance.”

An official from the justice system would select jurors by throwing white and black balls onto the kleroterion. If the row containing your pinakion had a white ball, you were on the jury. A black ball meant you were dismissed. This system kept the jury selection process fair and transparent, plus it prevented tampering.

Ast has taken this fair and transparent system and applied it to Kleros, a blockchain dispute resolution layer that provides fast, secure and affordable arbitration. Using crowdsourced jurors, Kelros can quickly adjudicate disputes in a secure manner."
Before going to examples just see the this video to clarify any doubts about the process: <iframe width="651" height="366" src="https://www.youtube.com/embed/NuSps_2wMQ4" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen></iframe>

An obvious case would be something like this:

**Case 1:**

Sam is a web designer. He has a small business, and depends on his income from doing web design work.

He recently secures a small client, Pots’n’Pans, who decide to hire him after viewing his portfolio. They agree on a set of payments to be made totaling $2000.

The first $500 is released at the start of the job, another $500 after the backend is complete, and the last $1000 upon the completion of the job.

They define a clear scope of work and what the client needs.

The client pays Sam the first $500 and off they go!

After a few weeks, when Sam completes the backend to spec, he contacts the client for his second payment. They let him know that they decided to change direction, and are not interested in continuing the development process.

What can Sam do?

Even with evidence of his interaction and their agreement with the client, realistically, there is not much to be done.

Going to small claims court or engaging in a lengthy dispute would cost more than to just accept it as a loss.

Had Sam secured their agreement via Kleros, there would’ve been a panel of judges that could’ve helped to settle this dispute. But without it, Sam is out $1500.
- Taken from their website https://kleros.io

**Case 2:**
Homemakerzz.hh is a successful multi-city architecture and interior design firm employing many top level designers and developers on contract basis.
Homemakerzz has contracted Lucy, for building a 3D walk-in model of an office. The blueprints and sizes and colors along with other specifics are sent E mailed, the time limit is 10 days.
After 9 days Lucy writes in for an extension of 5 more days. Here if Kleros is involved the remuneration would be automatically  adjusted if Homemakerzz accepts the new deadline so or The contract cancelled and the money refunded to them. On the other hand after submission of the project Lucy is told to execute some new changes in lighting  free of cost, the request seems small but amounts to a lot of extra work. Here also Kleros would step in to make full payment to Lucy for the work completed regardless of the changes that Homemakerzz wants.

Such contracts are entered into daily by writers and artists, by contractors and freelancers, by work-from-home accountants and consultants . Kleros would be able to secure performance by ensuring non biased arbitration for anything from digital contracts to insurance pay outs for damages to your car- inexpensively and really fast. Kleros makes 'smart contracts' REALLY 'smart'.
This article was written in response to - https://steemit.com/crypto/@originalworks/940-steem-sponsored-writing-contest-kleros
The company website link: [Kleros](https://kleros.io)
kleros2018