How Does Kleros Resolve a Smart Contract Dispute?
Kleros is a decentralized justice system that uses a crowdsourced network of jurors to resolve disputes. When a dispute arises, it is submitted to Kleros, and jurors are randomly selected and incentivized with cryptocurrency to review the evidence and vote on the outcome.
Their votes are aggregated, and the smart contract execution is then based on the majority decision. This mechanism aims for fairness and decentralization in conflict resolution.
Glossar
Decentralized Justice System
Jurisdiction ⎊ The concept of a Decentralized Justice System (DJS) within cryptocurrency, options trading, and financial derivatives fundamentally challenges traditional notions of legal authority and enforcement.
Decentralized Court System
Jurisdiction ⎊ ⎊ A Decentralized Court System, within cryptocurrency and derivatives markets, represents a novel approach to dispute resolution, shifting away from centralized legal frameworks towards blockchain-based arbitration.
Kleros
Dispute ⎊ Kleros functions as a decentralized dispute resolution layer, particularly relevant within cryptocurrency derivatives where oracle manipulation or smart contract ambiguities can generate contested outcomes.