To capitalize on the growing popularity of blockchain trends like decentralized financing (defi), Zeitgeist will launch a new native forecasting platform for Polkadot to expand the scope of opportunities for retail crypto investors.
New network that builds on substrate and starts exclusively on Kusama
Long before Satoshi Nakamoto unveiled the Bitcoin whitepaper that sparked a flurry of blockchain innovations, prediction markets were available in the form of organized betting, often on political outcomes. These markets existed for centuries and helped improve people’s wisdom in the form of betting odds that are popular to this day.
The blockchain iteration of these prediction markets promotes the same idea: determining the likelihood of information outcomes based on speculation. In contrast to trading cryptocurrencies, these markets are binary, which means that there will be either a positive or a negative outcome from a contract between two parties.
Predictions made with these systems are considered relatively accurate because they either match or exceed alternative results from focus groups, experts, and opinion polls. As forecasting markets overlap with the recent defi craze, a company is exploring new uses for the blockchain architecture in yet another significant expansion of the decentralized finance horizon.
Zeitgeist, a startup that recently moved out of stealth mode, is pioneering a new market for base-layer blockchain prediction based on substrates, the development framework developed by Polkadot.
A base tier approach
After Zeitgeist unveiled the project and raised a $ 1.5 million starting round from a consortium of investors, he published his roadmap. The project, which is managed exclusively by users who have the native ZTG token, is expected to launch its test network entitled “Battery Park” and a Kusama parachute at the end of 2021.
In contrast to other forecasting markets that run as decentralized applications on blockchains, Zeitgeist builds its chain or base layer, which is started exclusively on Kusama. Although related to Polkadot, Kusama was designed to host experimental protocols while providing a testing ground that reflects real-world conditions. This enables the forecasting market to operate on a large scale while minimizing transaction costs, opening up access to parachain assets and enabling bifurcated upgrades.
Cryptocurrency exchanges usually process a limited number of cryptocurrency pairs and derivatives. In contrast, Zeitgeist plans to serve thousands of different markets. Zeitgeist will initially support markets in the fields of cryptocurrency, sports and sports, politics, startups and insurance. Together, these opportunities open up immense potential for retailers who want to speculate on all possible outcomes while checking sentiment across all information areas.
Over time, the platform intends to aggregate the information and data gathered on the network to improve decision-making and see itself as the future center for Web3 forecasting. Interestingly, a function called Futarchy is also being introduced, which uses insights from its own forecast markets to gradually develop the governance of the platform. In addition, the construction on substrate will help to ensure that Zeitgeist is compatible with Polkadot if a network parachute is to be built in the future.
What’s next for defi sports betting with the rise of blockchain prediction markets? Let us know what you think in the comments section below.
Photo credit: Shutterstock, Pixabay, Wiki Commons, Zeitgeist, Kusama
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