To capitalize on the rising recognition of blockchain developments like decentralized finance (defi), Zeitgeist will likely be rolling out a brand new native prediction platform for Polkadot to increase the scope of alternatives out there for retail crypto traders.
New Community to Construct on Substrate and Launch Completely on Kusama
Lengthy earlier than Satoshi Nakamoto unveiled the Bitcoin whitepaper that led to a flood of blockchain innovation, prediction markets have been out there within the type of organized betting, usually on political outcomes. For hundreds of years these markets existed, serving to corral crowd-based knowledge within the type of betting odds, which stay standard to today.
The blockchain iteration of these prediction markets promotes the identical concept: figuring out the likelihood of informational outcomes primarily based on hypothesis. In contrast to cryptocurrency buying and selling, these markets are binary, that means both a optimistic or adverse final result outcomes from a contract between two events.
Predictions made utilizing these techniques are thought of comparatively correct, both matching or outpacing various outcomes from focus teams, specialists, and opinion polls. As prediction markets intersect with the most recent defi craze, one firm is probing new makes use of for blockchain’s structure in one other vital enlargement of decentralized finance’s horizons.
A Base Layer Method
After revealing the mission and elevating a $1.5 million seed spherical from a consortium of traders, Zeitgeist has unveiled its street map. The mission, which will likely be solely ruled by customers holding its native ZTG token, expects to launch its testnet titled “Battery Park” and a Kusama parachain by the tip of 2021.
In contrast to different prediction markets that function as decentralized purposes working on high of blockchains, Zeitgeist is constructing its chain, or base layer, which will likely be launched solely on Kusama. Though associated to Polkadot, Kusama is designed to host experimental protocols whereas offering a testing floor that displays real-world circumstances. This can allow the prediction market to function at scale whereas minimizing transaction prices, opening entry to parachain property, and enabling for forkless upgrades.
Cryptocurrency exchanges ordinarily deal with a restricted variety of cryptocurrency pairs and derivatives. In contrast, Zeitgeist plans to host 1000’s of various markets. Zeitgeist will initially assist markets in cryptocurrency, sports activities and esports, politics, startups, and insurance coverage. Collectively, these will open up immense potential alternatives to retail merchants looking for to invest on all method of outcomes whereas additionally reviewing sentiment throughout informational areas.
Over time the platform intends to mixture the data and information collected on the community to enhance decision-making, envisioning itself as a future hub for Web3 predictions. Curiously, it is usually rolling out a function known as Futarchy, which is able to use insights from its personal prediction markets to assist regularly evolve the platform’s governance. Furthermore, its development on Substrate will assist Zeitgeist be suitable with Polkadot if it intends to construct on a community parachain sooner or later.
With the rise of blockchain prediction markets, what’s subsequent for defi – sports activities betting? Tell us what you suppose within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons, Zeitgeist, Kusama
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