Why Kleros´ PNK (Pinakion) is going to the moon after Q3 2022 |Soon to be listed in Major Exchanges| The basics about the project

To be honest, this was an attempt to emulate the moony style and see how I felt with the result. Upon reflection, I felt it was way too shilly than I thought, I also realized that attracting moony [probably irresponsible] traders is not the main target of the project.

Which lead me to consider those who are passionate about Blockchain as its implication for the future society. This change of frame resulted in a more utility-centered post that aimed to depict the potential uses cases of the project.

So, if you find the moony style distasteful, I encourage you to read the polished reddit version. Without further ado, Enjoy.

Disclaimer: In spite of the moon-boy style of the post, this is not financial advice, my goal with this post is to give you the tools to boost your research process.

Hi, guys! Are you ready for the 2022 moonshots?

🚀Well, In this post I will give you a rocket with the tank full and waiting for the countdown. So, stick to the end to find out why Q3 2022 is July 16 of 1969 for PNK.

I´m talking about Kleros and his coin Pinakion (PNK). That project which:

Why did they acknowledge Kleros?

Because Kleros´ has the potential to become the courts of the blockchain era.

📈But before we start explaining this last claim, let´s recap a bit of history*:

The price of the Kleros Token over time:

Kleros IDO was 0.02 USD back in July 2018. It has since grown:

  • To a value of 0.10 -0.12 USD(start 2022).
  • Hit an all-time high of 0.48 USD.
  • With a market capitalization of 3,8 Million.

*All Kleros prices cited from https://coinmarketcap.com/currencies/kleros/

💸This means that if you invested $100 on the IDO, you would now have 500-650$; or $1100 if sold on the ATH.

🚀And since Kleros´ token has A LOT of utility, as well as a lot of room for growth (Still needs to cross the Chasm). IMHO, this is definitely a moonshot where you could expect at least a touch of the previous ATH.

E.g., if you invest now, you would get [check on the day] x4, i.e., from $100 you get +$300. You may also expect a nice pump when it gets listed on major exchanges such as KuCoin or Binance. Not mention the especulations on staking and 1000% ROI´s.

To discuss and speculate about the potential profits, join the Kleros´Trading Group. https://t.me/joinchat/FrzVW0SiEiyxZHTIBEEbSw

Where to buy PNK?

💱 See this guide on How to buy PNK:

https://youtu.be/eRxRbBYh7cs

PNK is listed on these exchanges:

⛓️ PNK Token Contract Address on Ethereum Mainnet

Yet technical analysis falls short for Kleros…

Let´s move to the fundamentals

Why this project is so important for the blockchain ecosystem?

🚀It is expected that by 2030 dApps will transact close to $3.1T and the value disputed on them will be around $150B (Close to 3- 5% of total value transacted).

So as this digital, real-time, and borderless (P2P) ecosystem thrives, new kinds of disputes arise that require a fast, inexpensive, decentralized, and reliable arbitration mechanism.

Kleros looks to fulfill that need and more while giving virtually anyone the possibility to earn crypto by solving these disputes.

So…What is Kleros?

If you´re of the audiovisual kind, watch the Kleros´ CEO Federico Ast explanation at this conference:

https://m.youtube.com/watch?v=1vtxp8RrpOA&feature=youtu.be

For those who love to read:

In essence, Kleros is a decentralized court system that allows dispute resolution of smart contracts using crowdsourced jurors who are economically incentivized to make honest decisions.

Thus, escapes all the limitations of traditional and centralized courts.

Let me exemplify how it helps with Escrow:

If you have ever bought anything from a freelancer or even just a product online you will understand the headache that can occur if there is a dispute.

You buy a product that is not to your liking, you raise the issue with the supplier, and then it is a constant back and forth trying to reach a compromise — if you ever reach one at all.

E.g., Alice, from France, hired Bob, from Guatemala, to develop an e-commerce website paying $500.

When Bob tells Alice the website is done, she argues the website isn´t what she expected and that she wants her money back, while Bob claims he fulfilled all the requirements of the contract.

Their options to solve this dispute:

Use a Frech or a Guatemalan court?

  • Not viable and more costly than the amount disputed.

Ask the contact platform to do the arbitration?

  • That sounds sensible, but is it likely that the platform has a dispute system? Is even profitable for the parties and platform to solve such a small dispute?

Kleros takes the headache out of this with a “3 step process”:

Kleros Escrow Infographic Flow from https://kleros.gitbook.io/docs/products/escrow

Step 1 — The first step in most financial transactions is handing money over. Typically this means handing money over to the supplier of a good or service.

With Kleros this is not the case. Instead of handing your money over to the supplier. Your money is sent to a securely locked smart contract.

E.g., Alice, from France, hired Bob, from Guatemala, to develop an e-commerce website locking $500 on a smart contract.

Step 2 — Once your money has been locked into the smart contract the seller or supplier begins work.

Once work has been completed the seller submits the product to the buyer.

If the buyer is happy with the work the money is taken out of the smart contract and sent to the supplier and that is the end of the transaction.

Step 3 — The TL; DR: if there is a dispute initiated the transaction goes to the consideration of the jurors on the Kleros network.

Jurors selected randomly by the Kleros protocol are then given time to consider evidence from both sides.

Once they reach a decision the funds are either refunded to the buyer or sent to the seller. The transaction is then complete.

Yet, this description of the arbitration process is rather incomplete. If you want to read about the specifics…

⚙Here is a diagram of how it works:

From The Dispute Revolution Book: Kleros adjudication process

And an explanation of each step:

  1. Alice and Bob agree (on a smart contract) to solve the dispute using Kleros (or the platform has integrated Kleros as its dispute resolution system).
  2. The fee (ETH) is paid and the dispute starts (could be crowdfunded or funded by the parties).
  3. Kleros randomly summons “expert” jurors who have staked the coin Pinakion (PNK) on a court specialized in the field (Freelancing) of the dispute.
  4. The parties submit evidence that supports their claims (pictures, links, videos, etc…).
  5. The jurors (based on the evidence) have to adjudicate which party is honest and deserves to win.
  6. If jurors choose in consensus with other jurors, (they can´t communicate with each other), they earn the arbitration fees (ETH)* and, if given the case, earn the staked PNK from jurors that choose to favor the dishonest party.
  7. Value is sent to the winner and the dispute is solved swiftly, and cheaply (compared to other options).

*Some courts give better rewards than others, but some have expertise requirements to join.

Can Kleros be attacked?

👨‍💻Although, you may come with some vulnerabilities concerns such as:

  • Concentration of power on decision-making.
  • Bribes
  • Non-binary options voting systems
  • Etc…

…You can find them is thoroughly addressed on 2/3 of the Kleros´ yellow paper.

To give you the TL; DR

Kleros´ Crypto-economist William George, is doing a great job to make all these attacks waaay harder and costly than they would be on a traditional court or any other centralized dispute system.

Besides, you can always appeal if you are unsatisfied with the results. (You can even crowdfund the appeal fee).

E.g., Sybil Attack protection.

One of the major attacks that Kleros could face is a Sybil attack. This is where the reputation of the network is attacked by creating multiple identities.

From the Dispute Revolution Book on Why Kleros needs a Native token: Security and Incentives in
Decentralized Justice, p. 132

In Kleros’s case, this would mean staking multiple ETH wallets with PNK in them and then using this PNK to manipulate jury decisions undermining the project. However, if you were to carry out this attack you would destroy the value of tokens you just bought.

This economic incentive plus the forking mechanism importantly reduces the likelihood of an attack.

For other kinds of concerns, I suggest you read the answers to common Kleros criticism here.

Which are Kleros Use Cases?

🛠Nonetheless, this is just the tip of the iceberg; Kleros has plenty of applications (I would say almost endless) for the blockchain era.

To illustrate:

Kleros has been used on +1000 disputes solved (online & offline)

Let me show you a list of some of its use cases:

Subjective oracles.

Any question that objective oracles cannot solve (Chainlink) can be resolved by crowdsourced jurors on Kleros. E.g., Kleros integrated into Omen, solved the millions of dollars bet on who won the 2020 U.S. election:

Content Moderation

Twitter’s CEO Jack followed Kleros because Kleros jurors could adjudicate fake news disputes on social platforms.

Token Listing

Uniswap has already integrated Kleros. To provide coin contract verification using the decentralized jurors.

Freelancing

Linguo project: a platform for freelance translation with a built-in dispute resolution mechanism.

Sybil resistance human identity verification systems:

Proof of Humanity dashboard The first proper integration of human identity verification on the blockchain. A proposal that Vitalik raised in 2019

Potential Use Cases

Development bounties

A dev team lists bounties to reward developers who build specific features or find bugs. A developer claims he developed the requested feature or found a bug. The dev team denies it. The evidence goes to dispute resolution. The jury decides who is right and the payment is executed accordingly.

Milestones to release funds in crowdfunding campaigns

Project managers pledge to develop a product and set up milestones. Each milestone releases a specific part of the funds raised in the crowdfunding. If milestones are not reached after a deadline, funds are reimbursed to contributors. Kleros solves claims based on milestone completion.

Website integrated payment
Websites can display payment buttons allowing their customers to make escrow payments. If customers do not receive goods and services as they should have, they can request a refund. The decision is made by Kleros jurors.

Micropayments for attention
Users can install a special plug-in and fund their accounts. Websites on the network don’t display ads to these users. Users of the network make automatic
micropayments to the websites they visit. Websites can enter the network by making a deposit. When a user notices that a website he paid for still displays ads, he can report it and claim the deposit of the violating website.

Inheritance
The will-maker uses an inheritance smart contract account to store his assets (ETH, Bitcoin, collectibles). He designates heirs to receive the funds upon death. If he doesn’t interact within a predetermined time, heirs can claim that the will-maker is dead. Anyone can counterclaim that the will-maker is in fact alive. Kleros can rule on the death of the will-maker (for example, by looking at the death records). Funds are transferred to the heirs if the will-maker is considered dead.

Car Insurance
Bob rents Alice’s car for the weekend. Bob sends $1000 into an escrow which will be refunded after the car is returned in good condition. Alice claims the car was damaged. Jurors estimate the damage at 300$. That amount is then sent to Alice from the funds deposited in escrow and the remaining $700 is refunded to Bob.

Auto-promises
Users can make promises with themselves by depositing a stake. If a person commits to losing weight, quitting smoking, exercise more, they put funds into an escrow. If they do not comply with the promise given, funds in the escrow are burnt. A panel of Kleros jurors defines whether the promise was indeed kept.

Moderate social media for profanity, illegal content, or NSFW content
Bob makes an unsavory comment on social media. The comment is flagged as
profanity. Jurors vote that the comment violated the terms and conditions of the platform. Bob loses reputation points or is suspended/banned.

Avoid plagiarism in content platforms.
Bob uploads a video to a video-sharing platform. Alice claims that he plagiarized a previous video of hers. Kleros jurors decide that the video was indeed

Removing fake files from torrent networks.
When a user sends a file to a torrent network, he needs to make a deposit. If the content in the file does not match the title description, other users can challenge it. Any dispute then goes to Kleros.

Securing Decentralized Finance Platforms
Users can submit tokens with their name, address, ticker, and logo. Incorrect
submissions can be challenged. Applications (wallets, decentralized exchanges, etc) use this list of tokens to allow their users to select tokens without having to type their addresses and to display user balances.

Sports betting
Gamblers place their bets on sporting competition results. Bettors who bet on the right result split the money lost by other bettors. If there is a dispute between parties over who actually won, that information is obtained through a Kleros-based jury decision.

And more:

Not to mention the current 12 integrations

Kleros Current Integration Ecosystem
As the ecosystem matures, many companies will use Kleros as a dispute resolution partner
while others will build applications on top of the Kleros protocol. This infographic shows a
number of companies from the decentralized ecosystem

🤔Now you may think…

This project looks platonically* solid! Why the hell hasn´t mooned yet?

*Sorry, couldn´t let that pun pass🤣

And the answer is: scalability has held back its potential; since Kleros runs on the Ethereum network, high transaction fees have made raising new disputes quite costly.

And although, the team has already tried to tackle this problem by also running the protocol on the xDAI chain. The UX of bridging staked PNK is not quite attractive for early adopters YET.

⚠But FUD not!

Kleros has already raised a couple of millions in capital to address this problem with Layer 2 solutions(E.g., Optimistic roll-ups), along with improvements of UX expected to be running by Q3 2022.

See how they are working on Court V2 at this presentation:

https://www.youtube.com/watch?v=9rtAu7gEkk0

Who is behind Kleros?

The founders behind the Kleros project are Federico Ast and Clément Lesaege.

Federico Ast is CEO of Kleros. Holding a Ph.D. in management he specializes in blockchain, fintech, and now legal tech most notably with Kleros.

Clément Lesaege is the current CTO of Kleros. Being a computer scientist he become interested in using blockchain to enforce dispute resolution. When Ethereum launched he realized that might just be possible.

Among the two founders, there is also a solid team of researchers, advisors, developers, and ambassadors backing the project.

👨‍🚀As I said before Kleros´ token has A LOT of utility and more sooner or later will cross the chasm as bitcoin is doing today.

So, I believe, IMHO, this is definitely a moonshot*, and that more sooner than later, whenever we find a dispute, we will find ourselves saying:

“Just use Kleros”

What do you think? I would be glad to read your thoughts in the comments.

Thank you for reading😁

Again, don’t just blindly trust me. I am not a financial advisor and my purpose here is to facilitate your research process.

🔎Let me share you with the resources so you can investigate further:

🌐Also, visit:

📖Read the Dispute Revolution book for 🆓: https://kleros.io/book

💭Check out the forum for all news regarding policy update proposals: https://forum.kleros.io

📢Subscribe to Kleros Official Announcement Channel for latest events, press, news, and more: https://t.me/Kleros_Announcements

💬Join the Kleros Official Telegram Group Chat where you can interact with the team members.https://t.me/kleros (They are very receptive to feedback and comments).

If you´re interested in making money becoming a juror:

✅Step by Step of how to become a juror look at this guide: https://www.youtube.com/watch?v=vRhD5WnUX3k

Or if you’re rather fond of words, read this guide: https://blog.kleros.io/become-a-juror-blockchain-dispute-resolution-on-ethereum/

--

--

--

I´m Working to leave the world better than I found it | ♥ #Bitcoin & #Ethereum | #Economics Student | #Marketing Passionate | #Health enthusiast

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

This Week in Blockfolio Signal — Ontology, Kyber, Elrond, NEM, iExec, Matic, Band Protocol

Socialogue

Filenet Bi-Weekly Report on Dec 23, 2019 - Jan 5, 2020

We successfully concluded Genesis DevCon with 850 blockchain enthusiasts and here’s what we learned

Welcome to the pure world of MAG — — ISEKAI

Replay launches web3 content payment and tracking protocol, secures funding from Theta Labs and…

NKN Bi-weekly Report Feb 16 — Feb 29, 2020

From Technological Innovation to Large-Scale Applications, BitCherry’s Development Has Entered a…

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
🔎Isaac Parra🔎

🔎Isaac Parra🔎

I´m Working to leave the world better than I found it | ♥ #Bitcoin & #Ethereum | #Economics Student | #Marketing Passionate | #Health enthusiast

More from Medium

A Million Dollar Project: From Comic to NFT

Brave New Web 0b0110.

What is OpenSea – And Everything You Need To Know

Web3 will change how we participate and act in our online communities