Blockchain allows for an entirely new class of trustless trading. These new forms of transaction without central intermediaries bring higher security and lower costs to financial services. For this trend to consolidate and grow, a new legal infrastructure is needed.
Kleros, a new decentralized dispute resolution ‘layer’ for virtually any transaction, has partnered with MARKET Protocol, a company building an open source foundation for decentralized derivatives markets, an industry worth over 500 trillion.
Together, the two companies will provide a completely decentralized trading and dispute resolution technology platform for secure and trustless transactions.
“The decentralized nature of MARKET Protocol is another great application for our trustless arbitration services”, said Federico Ast, CEO of Kleros. “As in other critical use cases such as e-commerce and payments, this is another step for our protocol to build the dispute resolution infrastructure for the global decentralized economy to operate smoothly and securely”.
Kleros, whose name is derived from the Greek word for Kleroterion (a stone randomization device used in democratic processes in ancient Greece) provides completely decentralized arbitration services for virtually anything. The company proposes doing this using Ethereum smart contracts. Its dispute resolution technology can be used to arbitrate all kinds of disputes in industries such as e-commerce, finance and insurance.
MARKET Protocol is powering safe, solvent & trustless derivative trading of any asset. This creates a decentralized framework allowing traders to establish long or short positions without lending or borrowing. Contracts are guaranteed solvent with no counterparty risk. Users can trade cross-chain, off-chain or on-chain relationships, such as Monero/ETH or APPL/stablecoin using ERC20 assets as collateral while remaining on the Ethereum blockchain. The protocol provides the pieces necessary for others to create decentralized exchanges and applications. MARKET Protocol’s first beta dApp was released on Rinkeby test network in April.
Seth Rubin, CEO and co-founder of MARKET Protocol, mentioned: “With trustless settlement, we are guaranteed to have issues from time to time. This can be as simple as bad data or worse, malicious data. We are excited to work with Kleros to provide creators of MARKET Protocol contract relationships a robust dispute resolution mechanism. We look forward to working with Federico and the rest of the Kleros team!”