#250 Clement Lessage & Federico Ast: Kleros – Crowdsourced Arbitration for Blockchain Applications

Support the show, consider donating:
BTC: 1CD83r9EzFinDNWwmRW4ssgCbhsM5bxXwg
ETH: 0x8cdb49ca5103Ce06717C4daBBFD4857183f50935
Dispute resolution is the process by which contracting parties settle disagreements. Whether in the form of litigation, arbitration, or other means of mediation, every contract defines a dispute resolution mechanism and jurisdiction. It is the metaphorical Lady Justice, measuring the strength of each party’s arguments, and reaching a decision based on evidence.
Smart contracts are unique in this sense. Unlike traditional contracts, they are rigid and deterministic. Written in computer code, nuances in human language and vagueness of terms do not exist in this realm. There are no judges, no jury, just calculated execution.
The DOA hack and other similar events have prompted observers of the space to express the need for smart contract dispute resolution. Some have suggested “exit switches” that would allow for human intervention when edge cases appear. But could the arbitration process be integrated into the smart contract and on the blockchain?
We’re joined by, Federico Ast and Clement Lessage, respectively CEO and CTO of Kleros. This dispute resolution layer provides contracting parties with a fast and secure process for arbitration. The system is broken up into courts and sub-courts, each specializing in specific matters like e-commerce, insurance, and transport. In the event of a dispute, parties submit their case to Kleros, where a crowd of expert jurors analyses the evidence. When all votes are cast, the decision is enforced by the smart contract, which may unlock funds, or provide parties with additional time to fulfill the terms of the agreement. Clever incentive mechanisms reward jurors who vote with the crowd, making Kleros resistant to bribe attacks and collusion between jurors.
Topics covered in this episode:
Federico and Clement’s respective backgrounds, including a crowd arbitration project called Jury.The vision behind Kleros and the problem it addressesThe case for crowd-sourced jurors as a means to find the best judgmentThe game theory and incentive mechanisms embedded in KlerosKleros’ hierarchical system of courts and sub-courtsHow jury selection works and who administers courtsThe system’s built-in governance mechanism and its purposeThe Kleros token, Pinkaion coin, and it’s utility in the system“Doge on Trial,” a clever experiment to find authentic dogesThe current status of the project and roadmap Episode links:
Kleros Website Kleros White Papper Doges on Trial Why Decentralization Matters by Chris Dixon This episode was hosted by Meher Roy & Sébastien Couture, and is availble on YouTube, SoundCloud, and our website.