Introduction to Kleros and Decentralized Justice

Deck of the talk by Federico Ast at the Subtech conference in Northwestern Law School on July 19, 2024.

Kleros is a decentralized dispute resolution platform that leverages blockchain technology and game theory to provide a transparent and efficient method for arbitration. This presentation covers the fundamental principles behind Kleros, including the use of smart contracts, juror selection through Ethereum tokens (PNK), and economic incentives to ensure honest and coherent decision-making.


Key Features of Kleros:

1. Blockchain-Based System: Ensures transparency and immutability of decisions.
2. Collective Intelligence: Utilizes the wisdom of crowds to resolve disputes fairly.
3. Economic Incentives: Aligns juror motivations with the truth to minimize gaming of the system.

Discussion Points:

• The comparison between traditional arbitration methods and Kleros in terms of resolution time, cost, and transparency.
• The role of decentralized justice in the future, particularly for digital goods, small claims, cross-jurisdiction issues, and crypto payments.
• Challenges and questions raised by decentralized justice about due process and the readiness of society to accept new incentive systems and anonymous arbitrators.

Explore how Kleros aims to revolutionize dispute resolution by bringing fairness and efficiency to the digital age.

Follow for More:

• Website: kleros.io
• Twitter: @federicoast, @kleros_io

This description provides a comprehensive overview of the presentation, highlighting the main concepts and inviting the audience to explore more about Kleros and decentralized justice.

1. Introduction to Kleros and
Decentralized Justice
kleros.io
Federico Ast
CEO @ Kleros

@federicoast
@kleros_io

2. Global
Work

3. The Contract

5. Frustration
?
Go to
international
arbitration
for over 500
dollars?

6. Alice
Bob
Smart
Contract
Arbitrator

7. Jurors

8. Alice
Bob
Smart
Contract
Arbitrator
Alice
Wins

9. Juror Selection

11. Pinakion (PNK)
Ethereum Cryptographic Token

15. Incentive Design

17. Focal
Points

18. 3785 4903 5232 9864
3927 1214 1000 2783
4287 3893 2398 8538
Pick a Number
If you pick the same number as the
majority, you get $20.

19. Jurors are
incentivized to vote
coherently with the
majority…

20. Users trying to game
the system will
lose money
(on average)
$

21. Honest users will
make money
(on average)
$

22. Traditional
Methods

Kleros
Resolution
Time
Resolution
Cost
Transparency

28. Objective
Simple
Subjective
Complex
Better
solved by
AI
Better
solved by
Kleros
Better
solved by
traditional
methods
AI

29. The Future of Disputes
Digital Goods
Small Claims
Cross-Jurisdiction
Crypto Payments
Smart Contract Enforcement
Anonymous Parties
Anonymous Arbitrators
Bots

30. i
Feature 1
The system
is built on
blockchain

31. Feature 2
Collective
Intelligence

32. Feature 3
Economic
Incentives

33. Decentralized Justice
Raises Questions About
Due Process in the
Digital Age

34. Decentralized Justice
Are we prepared to have anonymous
arbitrators?
Are we ready to accept radically new
incentive systems?
Can arbitrators have a vested interest in
the outcome of a dispute?

35. Which mental models do
we need to overcome for
these new models to
become feasible?
First Principles Thinking

36. Thanks!
kleros.io
Federico Ast
President, Cooperative Kleros
@federicoast
@kleros_io