fbpx
The Daily Chain
No Result
View All Result
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List
No Result
View All Result
The Daily Chain
No Result
View All Result
Home Articles

Why Kleros excites crypto enthusiasts

Alex Aves by Alex Aves
14th January 2020
6 min read
0
kleros primer
17
SHARES
0
VIEWS
FacebookTwitterLinkedinTelegramEmailWhatsapp

Crypto loves Kleros, even if it doesn’t know it yet. I’m going to show you why.

When you’re on the hunt for a new cryptocurrency investment, due diligence is key. After all, it’s your responsibility to analyze each and every investment opportunity to find the most promising projects. 

Personally, a unique idea, a strong team and an endorsed product are some of the key things I’m on the lookout for. This is simply because when I find a unique product that is being crafted and operated by intelligent, highly suitable minds and has been organically endorsed by reputable sources, I feel like I’m on to something special. 

Kleros is the world’s first decentralized court. By leveraging blockchain technology and advanced cryptoeconomics, Kleros is able to resolve disputes in an interesting, unique and arguably extremely fair way. Not only that, Kleros has been referenced multiple times by one of cryptocurrencies most well known and rightfully respected faces. 

Using crypto to solve disputes

Kleros uses a crypto-incentive backed Schelling point mechanism to resolve disputes in a new, innovative way. 

A Schelling point, first proposed by Thomas Schelling in his book in 1960, is a solution in game theory which is often chosen by individuals without communication. In other words, a Schelling point is a result or solution that, when presented to a number of people who aren’t communicating, is more likely to be picked. This logic has been observed and explained in studies and is thought to be due to environmental characteristics that influence human decision. 

This mechanism is utilized in Kleros’ solution to reach cheap, efficient and enforceable decisions. Jurors are economically incentivized to reach the Schelling point, also thought to be the correct result of a case. Jurors will be rewarded for ruling with the majority and matching the Schelling point, while jurors that don’t conform with the majority will suffer a financial penalty. Here’s a brief overview of how the system works. 

Resolving an issue with Kleros

Two parties create an agreement and choose to use Kleros as a mediator and potential dispute arbitrator. Upon completion of the agreement, if one side is not satisfied with the other then Kleros will use crowd sourced, subject expert jurors to review the evidence and settle the dispute. Jurors will consider both sides of the story and reach a decentralized conclusion. 

Jurors must stake PNK tokens to be selected. Each juror will collect an arbitration fee in exchange for their contribution to a case. But if a juror’s ruling does not match that majority decision, the ‘incorrect’ juror will pay a portion of their staked tokens to the jurors who agreed with the majority.

There are two things combined here to enhance the likelihood of reaching the correct, fair conclusion.

  1. Financial incentivization spurs jurors to rule fairly
  2. A group of individuals that aren’t communicating are thought to reach the Schelling point

When a Schelling point mechanism is coupled together with financial incentives, one assumes that the subject expert jurors would be able to resolve disputes amicably consistently by reaching the ‘fair’ and ‘correct’ decision. In the case that one party isn’t happy with the result, there is the option to dispute the ruling which invokes a fair dispute process with more jurors. 

Vitalik’s interest in Kleros

Co-Founder of Ethereum Vitalik Buterin is one of the most well known and highly respected people in crypto – and for good reason. That’s why it’s so interesting to see Vitalik’s clear interest in Kleros’ solution. 

To start with, back in 2014 Vitalik wrote an article about a potential SchellingCoin where he outlines the Schelling point theory and explains how it could work with cryptocurrency – a system that has been applied to Kleros today. Interestingly, a reddit post by Vitalik in 2016 suggests a decentralized court solution using Ethereum. He clearly likes the idea. 

Also in 2014, Vitalik wrote a post with a number of hard problems that he believed were important in crypto, one of which was the Schelling point suggestion mentioned above. Revisiting this in 2019 Vitalik recognized Kleros as both a reputation system and a system that can achieve decentralized success metrics. 

At the ETH New York Summit Vitalik talked about Kleros and suggested using it as a decentralized resolution platform. 

Vitalik even tweeted about Kleros praising their work in December 2019. Awesome! 

This team continues to be doing truly amazing work on decentralized arbitration and curation.https://t.co/CQz3REp4Kw

— vitalik.eth (@VitalikButerin) December 18, 2019

A great idea backed by a strong team

As we’ve seen, Kleros is a powerful solution with perhaps the most meaningful endorsement available in cryptocurrency. 

Even better is that behind the scenes is an international, multi-disciplined team that are dead set on leveraging the power of blockchain to transform law and governance. The Kleros team is highly skilled and diversified, with experts in smart contract security, computer science, cryptoeconomics, business, marketing and communications they have the perfect team composition for the job. Together the Kleros team aims to bring fairness to disputes and empower courts of the future.

A different, fairer ICO

In true Kleros spirit, the project is hosting their ICO in a slightly different way to present a fairer offering to investors. 

In short, it is thought that token sales present investors with a flawed investment opportunity because token distribution happens prior to any real progress. 

To combat this issue Kleros delayed the first round of their token sale until a working prototype is available and will be hosting the ICO in rounds. Rounds will be held when a critical roadmap item is fulfilled. 

The second round of the Kleros ICO is live from January 11 to February 11, where 150 Million PNK is on sale. 33% of the total offering has sold in the first three days! 

Learn more about Kleros here.

Alex Aves
The Daily Chain

*Disclaimer – Kleros are our Media Partners and therefore this content is sponsored by them. The fees paid by this project are used to pay for The Daily Chain salaries, dev work, hosting services, travel expenses etc.. that are required to make this company a success and continue to provide the community with great content on a daily basis.

Tags: ArticlesKleros
Share17TweetShareShareSendSend
Alex Aves

Alex Aves

Alex is a crypto enthusiast that has been enthralled with the crypto space for over two years now.

Related Posts

BTC Extends Its Rally Above $52K, while ETH Surges to New ATH
All News

Brave Enlists New Search Engine to Replace Google Browsers

4th March 2021
Santiment: Leading ERC-20 Protocols by Development Activity
All News

Santiment: Leading ERC-20 Protocols by Development Activity

3rd March 2021
Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk
All News

Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk

2nd March 2021
CoinFlip Holds up Dogecoin Across Its Network of 1,800 ATMs in the US
All News

CoinFlip Holds up Dogecoin Across Its Network of 1,800 ATMs in the US

2nd March 2021
Cardano’s Mary Hard Fork is Live; Users Can Now Create Custom Tokens
All News

Cardano’s Mary Hard Fork is Live; Users Can Now Create Custom Tokens

2nd March 2021
FD7 Ventures Invests $250M in India for Polkadot and Cardano Projects
All News

FD7 Ventures Invests $250M in India for Polkadot and Cardano Projects

1st March 2021
Next Post
India

Indian Supreme Court ready to discuss Crypto Ban Bill - But not just yet

CFTC Chair Says it's Unclear Whether Ripple is a Security or Commodity

CFTC Chair Says it's Unclear Whether Ripple is a Security or Commodity

Please login to join discussion
  • All News
  • Editor's Picks

PayPal reportedly eyeing purchase of Crypto Storage Platform Curv – Crypto Custody incoming?

Brave Enlists New Search Engine to Replace Google Browsers

Report – former Bitmex CEO Arthur Hayes to surrender to US authorities

Kings of Leon Become FIrst Rock-Band to launch Album as limited edition NFTs

ETH Price Flips Crucial Resistance Levels: Why Bulls Could Retest $2K

Join our newsletter!

Enter your email to receive our newsletter.


Don’t worry, we don’t spam
ADVERTISEMENT

Popular Posts

  • Coinbase-Bitcoin

    Coinbase publicly reveals it has held Bitcoin on its Balance Sheet since 2012

    0 shares
    Share 0 Tweet 0
  • MIT announces 4-year project that seeks to strengthen the Bitcoin Network Security

    0 shares
    Share 0 Tweet 0
  • Google Finance launches dedicated Crypto Section

    0 shares
    Share 0 Tweet 0
  • BTC Market Endures Bias Conflict: Why BTC Prices are Wobbling Around $50K

    0 shares
    Share 0 Tweet 0
  • Zilliqa News: Token Swap Now Complete With 98% tokens Exchanged For Native $ZIL

    0 shares
    Share 0 Tweet 0

Market Updates

ETH Price Could Rally to $440 as DeFi Interest Surges

ETH Price Flips Crucial Resistance Levels: Why Bulls Could Retest $2K

3rd March 2021
Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk

Bitcoin Revisits $50K As Goldman Sachs Restarts Its Crypto Trading Desk

2nd March 2021
BTC Price Pops Over $48K Amid More Institutional Buying

BTC Price Pops Over $48K Amid More Institutional Buying

1st March 2021

Media

hashoshi-alts (2)

Altcoin Season Picks / Projects with Huge Potential

9th September 2020
cardano-ADA

Hashoshi: Cardano Shelley is live… but what’s next is WAY BIGGER

19th August 2020
hashoshi-alts

Hashoshi: Low Cap Alts you need to be watching in 2020

5th August 2020
fomohunt-podcast

FomoHunt Podcast – Joe Vezz & Jon Farjo: Tracking Social Sentiment Waves with Lunar Crush

30th July 2020
ethereum-hashoshi

Hashoshi: Ethereum 2.0, Chainlink, Bitcoin Price, and more!

27th July 2020
fomohunt-podcast

FomoHunt Podcast – Joe Roets: Behind the scenes of “Open source money”

24th July 2020
The Daily Chain

The Daily Chain is a news platform and educational hub founded in January 2019. We are dedicated to providing unique and informative daily content across all facets of the blockchain and cryptocurrency industry whether it be news, opinion pieces, technical analysis, reviews, interviews, podcasts and more.

LEARN MORE »

Recent Posts

  • PayPal reportedly eyeing purchase of Crypto Storage Platform Curv – Crypto Custody incoming?
  • Brave Enlists New Search Engine to Replace Google Browsers
  • Report – former Bitmex CEO Arthur Hayes to surrender to US authorities
  • Kings of Leon Become FIrst Rock-Band to launch Album as limited edition NFTs

Information

  • About
  • Contact
  • Site notice
  • Risk Warning
  • Privacy Policy

Categories

  • News
  • Markets
  • Features
  • Education
  • Media
  • Reviews

TheDailyChain © 2020. The Home of Digital Assets

No Result
View All Result
  • News
    • All News
    • Assets
    • Bitcoin
    • Business
    • Editor’s Picks
    • Technology
  • Markets
    • Market Updates
    • Live Cryptocurrency Market Prices
    • Press Release
  • Features
    • Articles
    • Opinion
    • Interviews
    • Quiz
  • Education
    • Blockchain
    • Trading
    • Investing
    • Safety
  • Media
    • Video
    • Podcasts
  • Reviews
  • Asset List

TheDailyChain © 2020. The Home of Digital Assets

At The Daily Chain, we are committed to protecting the personal data of our audience.
In light of the General Data Protection Regulation, we are asking our audience in Europe to consent to the use of cookies by The Daily Chain and its partners to continue to our site. These cookies are used to personalize your user experience (content and ads) and support and improve the site. Please click “I Agree, Continue to Site” below to consent to the use of this technology and continue to TheDailyChain.com. Visit our Privacy Statement to learn more. Cookie settingsAgree, continue to site
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

bitcoin
Bitcoin (BTC) $ 49,187.00 4.86%
ethereum
Ethereum (ETH) $ 1,557.43 3.15%
cardano
Cardano (ADA) $ 1.16 7.20%
binance-coin
Binance Coin (BNB) $ 236.99 5.77%
tether
Tether (USDT) $ 1.00 0.09%
polkadot
Polkadot (DOT) $ 35.77 5.44%
xrp
XRP (XRP) $ 0.447010 3.78%
litecoin
Litecoin (LTC) $ 184.70 4.72%
chainlink
Chainlink (LINK) $ 28.83 6.68%
bitcoin-cash
Bitcoin Cash (BCH) $ 512.48 5.39%
Newsletter

Join our newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam