To capitalize on the growing popularity of blockchain areas such as decentralized finance (Defi), Zeitgeist will launch a new native prediction platform for Polkadot to expand opportunities for retail crypto investors.
New network built on substrate and operating solely on Kusama
Long before Satoshi Nakamoto announced the Bitcoin paper that led to a flood of blockchain innovations, prediction markets existed as organized bets, often on political outcomes. For centuries, these markets have existed to pool the wisdom of the crowd in the form of bets that remain popular to this day.
The blockchain iteration of these prediction markets promotes the same idea: determining the likelihood of news outcomes based on speculation. Unlike cryptocurrency trading, these markets are binary, meaning that a contract between two parties has a positive or negative outcome.
The predictions made using these systems are considered relatively accurate because they match or exceed the alternative findings of focus groups, experts and opinion polls. As predictive markets intersect with the latest definitive fad, companies are exploring new applications for blockchain architecture in another major expansion of decentralized finance horizons.
Zeitgeist, a startup that recently emerged from stealth mode, is leading the way in the new market for elementary blockchain predictions based on Substrate, a development framework developed by Polkadot.
After unveiling the project and raising $1.5 million in seed funding from a consortium of investors, Zeitgeist revealed its roadmap. The project, which will be run exclusively by users with their own ZTG token, plans to launch a test network called Battery Park and Parachute Kusama by the end of 2021.
Unlike other prediction markets that operate as decentralized applications on the blockchain, Zeitgeist is building its own blockchain or base layer that will run exclusively on Kusama. Although associated with Polkadot, Kusama is designed to accommodate experimental protocols while providing a test environment that mirrors real world conditions. This will allow the prediction market to operate at scale while minimizing transaction costs, opening up access to parachuted assets and allowing for non-split upgrades.
Cryptocurrency exchanges typically trade a limited number of cryptocurrency pairs and derivatives. Zeitgeist, on the other hand, plans to cover thousands of different markets. Zeitgeist will initially support cryptocurrencies, sports and esports, politics, startups and insurance markets. Together, they open up immense opportunities for traders looking to speculate on all possible outcomes while analyzing sentiment in the information sphere.
Over time, the platform aims to combine information and data collected on the network to improve decision-making, positioning itself as a future hub for Web3 forecasting. Interestingly, it will also introduce a feature called Futarchy, which will use insights from its own prediction markets to gradually evolve the management of the platform. By using substrates, Zeitgeist will also be compatible with Polkadot if this company wants to use a network display in the future.
With the growth of the blockchain prediction market, what’s next for Defi – sports betting? Tell us what you think in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Zeitgeist, Kusama
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