Dether and Kleros Join Forces to Launch Decentralized Arbitration for Cryptocurrency Traders
Dether is thrilled to announce our partnership with Kleros, the leading protocol for a decentralized justice system.
Since Dether’s inception, we’ve been been looking at the best way to swiftly and justly arbitrate possible disputes, like a retail shop in non-compliance in local laws or a transaction dispute between users.
Today, we’re pleased to announce our official partnership with Kleros.
What is Kleros?
Kleros is a blockchain Dispute Resolution Layer that provides fast, secure and affordable arbitration for virtually everything. Kleros allows users with disputes to be connected with a specialized juror from a global pool of experts.
Using blockchain technology, users can count on transparency and evidence integrity, relying on game theoretic incentives to have jurors rule cases correctly. The result is a dispute resolution system that renders ultimate judgements in a fast, inexpensive, transparent and decentralized way.
What is Dether?
Dether is building a worldwide peer-to-peer ecosystem of crypto buyers, sellers and physical shops willing to buy and sell ether for any fiat currency without a middleman.
The first solution built on top of Dether’s protocol is a decentralized and user-friendly mobile app that enables anyone to trade Ether for cash.
A perfect fit between Kleros and Dether
- Managing disputes between users
Kleros can link Dether users to jurors regarding potential disputes, based on the the ERC792 arbitration standard. Jurors in Kleros are compensated for their work by arbitration fees.
Imagine that Alice wants to cash out her Ether for Euro, and connects with Bob on Dether. After meeting, Alice realizes that Bob has not given her the full amount of Euro — yet Bob assures her he has. A dispute arises.
They both select Kleros as arbitration provider. Evidence is sent to Kleros, which draws a jury of experts. Jurors analyze the evidence and vote Alice as winner. The smart contract reimburses Alice. Jurors collect arbitration fees for their work, which are paid by Bob. The case is closed.
2. Proposing a decentralized escrow system for fiat currency
One of the barriers in peer-to-peer cryptocurrency exchanges is to actually meet up with the buyer or seller in order to exchange fiat for cryptocurrency.
Some individuals would rather stay at home to freely exchange crypto for fiat currency. In this case, Kleros can become the new decentralized third party that will handle the escrow system in exchanging fiat cryptocurrency for cryptocurrency. Kleros jurors will be in charge of releasing the funds after both parties have sent their funds.
3. Disputes about malicious shop listings
In another case, Kleros can step in if a shop owner lists his or her shop on the Dether map while promoting illegal items or services. This could be spam, inexact locations or illegal items. Kleros jurors will be able to manage the listing on the Dether map.
Kleros and Dether will be a perfect fit, ready to propose many relevant solutions that we believe will go a long way in making Dether’s ecosystem safer and more equitable for users.