The current world has become increasingly digitized with numerous advancements advocating the use of digital technologies. With blockchains in the mix, the scope for refurbishment of existing technological provisions becomes a reality. Novel applications such as prediction markets are not exceptions either, as newer iterations of them being established using top-notch innovations. Decentralized prediction markets, as they are called, bring home the power of blockchain technology to make gamified prediction betting more fun, safe, and seamless. We will see more about these platforms and what they offer as a business model in today’s swashbuckling world of Web3 technology.
Table Of Contents
- Decentralized Prediction Markets: What Do They Mean?
- Benefits of Blockchain-based Prediction Applications
- Working of Web3 Prediction Markets
- Top Web3 Prediction Platforms
- Why Should You Build a Decentralized Prediction App?
- Why Should You Choose Us to Create Decentralized Prediction Markets?
- Conclusion
Decentralized Prediction Markets: What Do They Mean?
Decentralized prediction platforms let people make bets on outcomes of events of all sorts in exchange for crypto-based rewards. Commonly covered event themes can include crypto price forecasts, stock price predictions, sports results, election outcomes, financial regulatory predictions, and weather predictions.
While the concept of prediction markets have existed for a long time, the decentralized version is fairly new. It only picked up steam during the pandemic when blockchain-based asset trading became immensely popular. Since then, it has largely remained underrated, despite being a promising business model. Now, though, things are changing, as more entrepreneurs have begun exploring this promising venture model.
Benefits of Blockchain-based Prediction Applications
- Blockchain-based prediction applications offer high degree of decentralization, meaning no central entity is involved. This makes them resistant to content censorship and manipulation of results.
- Such prediction apps provide military-grade security that were absent in their earlier versions. From user-end login provisions to back-end security using HTTPs authentication and encryption, these platforms ensure to offer top-notch safety for users and businesses.
- Decentralized prediction solutions operate in a peer-to-peer manner, making it devoid of intermediaries. Such operations reduce the costs associated with transactions in these platforms, slashing entry barriers for participants.
- These platforms utilize open blockchain ledgers to process and store data, increasing transparency levels observed. It helps in reducing fraudulent behavior while enhancing trust among the user community.
Working of Web3 Prediction Markets
- Any Web3 prediction market begins by sorting out the events that users will be interested to place their predictions. Events here can be of diverse types ranging from crypto price movements to weather predictions.
- After finding the events the platform will have, the venture will create exclusive markets for different events with adequate information such as description, betting deadline, and live statistics wherever possible. Each event will have multiple submarkets for different rewarding regimes.
- Now users can place predictive bets on the events listed in the platform by buying tokens representing the event or by paying a particular crypto coin or stablecoin.
- As the event deadline approaches, users can exchange their prediction tokens based on how sentiments related to a particular event pan out. In case of investing crypto coins to place bets, such exchanging is not possible.
- After the event occurs, relevant information is updated and verified on the blockchain ledger. Payouts can be redeemed for tokens representing the winning outcome based on the odds and total number of bets placed.
- Finally, the payouts are distributed to directly to the wallets of winners who had correctly predicted the outcome beforehand. These transactions are executed automatically and registered on the blockchain.
Top Web3 Prediction Platforms
PolyMarket
PolyMarket is a popular Polygon-based Web3 prediction market that has been popular in the current times. The platform needs users to deposit funds either through their MetaMask wallets or through a centralized crypto exchange like Binance. Afterwards, they can place bets on events and yield the outcome.
Augur
Augur is a decentralized prediction app built on the Ethereum network, attracting a lot of users as a result. The application enables users to trade shares of event outcomes as a way to place bets in a peer-to-peer manner, eliminating the need for intermediaries to administer transactions.
Better Fan
Better Fan works on BNB Chain and Multichain, opening decentralized predictions to alternative networks. The app focuses primarily on sports predictions without adverse impacts like gambling addiction and financial losses. THe platform offers prediction events for both real world and virtual sports competitions, opening a diverse range of possibilities for sports fans.
Wingman
Another Polygon-based prediction platform, Wingman is unique with its prediction events – flight delays. People can predict flight delays and cancellations daily to earn rewards in $MATIC. The platform utilizes real-time oracles related to flight schedules to bring new flights into competition, making way for prediction enthusiasts to participate in new competitions.
Launch a Decentralized Predictions Market App to Tap into the Crypto-Savvy Population!
Why Should You Build a Decentralized Prediction App?
With the buzz around decentralized predictions gaining momentum, it wouldn’t be nice if you do away with creating a business based on the model. Why? Firstly, gaining user trust is very easy. Blockchains hold all data generated on your behalf, and they can show it to anyone wishing to look at it.
Also, you can eliminate the overhead costs of secure data storage for the same reason. With blockchain technology, all information will be stored across a network of devices connected to the network, tampering with which would be next to impossible. Also, with more people willing to go social and show their opinions digitally, these platforms offer a safer yet beneficial option for them to exhibit their predictive knowledge.
Why Should You Choose Us to Create Decentralized Prediction Markets?
In case you are interested in building a decentralized prediction platform but are unsure of how to proceed, you never need to worry. With our expertise in building a diverse range of blockchain-based decentralized applications (dApps), we can seamlessly create and deploy your dApp for predictions.
Apart from our understanding of the Web3 business dynamics, our capability to work with sophisticated tech stacks, including major layer-1 and layer-2 networks, allows your app to stay on top. We also emphasize customizability from the start till the end, enabling you to decide how your blockchain-based prediction market will look and work and what external integrations will be utilized.
Conclusion
Henceforth, we have seen the significance of decentralized prediction markets as a business model in the current Web3 space. With the current socializing mindset among people changing due to digital innovation, these dApps are expected to see an unprecedented rise in adoption and usage. Such a shift in mindsets has greatly benefited business enthusiasts wanting to explore beyond NFT collections and marketplaces. Did the decentralized prediction app model intrigue you from a business perspective? If so, talk with one of our experienced professionals to take your perception forward into a realistic business existing online forever. Fill out the form below for a start!
