The post What are decentralized prediction markets? appeared on BitcoinEthereumNews.com.

Decentralized prediction markets are blockchain-based platforms where users bet on future events without intermediaries. Here’s what you need to know: Use blockchain and smart contracts to operate autonomously Allow betting on various outcomes like politics, sports, finance Typically use cryptocurrency tokens for trading Aim to harness “wisdom of the crowd” for accurate predictions Key features: Feature Description Decentralized No central authority controls the market Transparent All bets and market data are public Low fees Reduced costs due to no intermediaries Global access Anyone with internet can participate Censorship-resistant Difficult for governments to shut down Popular platforms: Polymarket: Operates on Ethereum with Polygon Layer-2, allows bets on a wide range of real-world events. Augur: Ethereum-based, allows user-created markets TotemFi: Uses staking system, no loss of funds on wrong predictions Challenges include legal uncertainties, data reliability issues, and potential market manipulation. Despite limitations, these markets show promise for predicting outcomes in finance, politics, and other fields. 2. Basics of decentralized prediction markets 2.1 Definition Decentralized prediction markets are online platforms that use blockchain technology. They let people bet on future events without middlemen. These markets use group knowledge to guess how likely different outcomes are. They work on blockchain, which makes them open, unchangeable, and hard to shut down. Key parts of decentralized prediction markets: Built on blockchain Run by smart contracts Use tokens for betting Allow direct trading between users 2.2 Main features Decentralized prediction markets have several key features: Feature What it means No central control No single group runs the market Open to all Anyone with internet can join See-through All bets and market info are public Hard to stop Governments can’t easily shut them down Cheap to use Lower fees than regular markets Self-running Smart contracts handle all tasks These features make prediction markets more open and fair.…

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Filed under: News - @ August 7, 2024 10:22 pm