To capitalize on the rising reputation of blockchain tendencies like decentralized finance (defi), Zeitgeist will likely be rolling out a new native prediction platform for Polkadot to broaden the scope of alternatives out there for retail crypto buyers.
New Network to Build on Substrate and Launch Exclusively on Kusama
Long 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, typically on political outcomes. For centuries these markets existed, serving to corral crowd-based knowledge within the type of betting odds, which stay widespread to this present day.
The blockchain iteration of these prediction markets promotes the identical thought: figuring out the likelihood of informational outcomes primarily based on hypothesis. Unlike cryptocurrency buying and selling, these markets are binary, which means both a constructive or destructive final result outcomes from a contract between two events.
Predictions made utilizing these techniques are thought-about comparatively correct, both matching or outpacing different outcomes from focus teams, consultants, 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 important enlargement of decentralized finance’s horizons.
Zeitgeist, a startup that not too long ago exited stealth mode, is pioneering a new base layer blockchain prediction market primarily based on Substrate, the event framework pioneered by Polkadot.
A Base Layer Approach
After revealing the undertaking and elevating a $1.5 million seed spherical from a consortium of buyers, Zeitgeist has unveiled its highway map. The undertaking, which will likely be completely ruled by customers holding its native ZTG token, expects to launch its testnet titled “Battery Park” and a Kusama parachain by the top of 2021.
Unlike different prediction markets that function as decentralized functions operating on prime of blockchains, Zeitgeist is constructing its chain, or base layer, which will likely be launched completely on Kusama. Although associated to Polkadot, Kusama is designed to host experimental protocols whereas offering a testing floor that displays real-world situations. This will 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. By distinction, 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. Together, these will open up immense potential alternatives to retail merchants searching for to speculate on all method of outcomes whereas additionally reviewing sentiment throughout informational areas.
Over time the platform intends to mixture the knowledge and knowledge collected on the community to enhance decision-making, envisioning itself as a future hub for Web3 predictions. Interestingly, it is usually rolling out a function known as Futarchy, which is able to use insights from its personal prediction markets to assist steadily evolve the platform’s governance. Moreover, its development on Substrate will assist Zeitgeist be appropriate 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? Let us know what you assume within the feedback part beneath.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Zeitgeist, Kusama
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