The post Decentralized Prediction Markets: The Next Frontier in DeFi?  appeared on BitcoinEthereumNews.com.

Decentralized prediction markets are one of those incredible phenomena where state of the art technology meets fundamental human nature. For example, at the core of a prediction market are a group of humans that all want to guess at the outcome of a future event, and are willing to put something valuable on the line in order to be rewarded if they are right.  At the same time, the innovation of decentralization takes this concept that might have been done at the event itself, or through a heavily centralized platform, and transforms the entire situation so that the community of people who are staking a claim on their prediction are all contributing (along with a smart contract) to the market functioning perfectly.  More than that, this technology allows a prediction market to transcend any particular currency, border, or geographical distance, meaning that nearly anyone in the world could potentially participate.  One of life’s oldest instincts, guessing about the future, meets modern technology in a way that doesn’t depend on any central figure.  Incredible phenomenon indeed.  Let’s dive into what a decentralized prediction market might look like in terms of DeFi and beyond, and how this can be a strong advantage for the challenges currently faced by centralized versions of these markets. Prediction Markets: Assets and Events Prediction markets of any kind can take two distinct forms:  guessing at the price of an asset in the future, or guessing at the outcome of a future event.  Both are valid applications of prediction markets, and both have found significant success within blockchain.  The basic elements in each case are the same.  Any participants must decide for a given market what outcome they would like to predict.  This could be the price of a particular asset (either within a particular time frame or indefinitely),…

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Filed under: News - @ November 4, 2024 5:21 pm