Prediction Market
A market where users trade on the outcome of future events, with prices reflecting probability.
A market where users trade on the outcome of future events, with prices reflecting probability.
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Sep 2026 · Verheidsscore: 50%
What is Prediction Market?
A market where users trade on the outcome of future events, with prices reflecting probability.
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Users buy shares in possible outcomes, and the price of each share approaches the market's assessed probability. When the event resolves, winning shares pay out. Arbitrage keeps prices efficient.
Prediction markets provide a transparent, incentive-aligned way to forecast events, from elections to protocol upgrades. They are a powerful application of market mechanisms. Their regulatory status and oracle dependence are ongoing conside
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Overview
A prediction market is a market where users trade on the outcome of future events, with prices reflecting probability. Outcomes are resolved by oracles or decentralized judges. They aggregate diverse information into a consensus forecast.
How It Works
Users buy shares in possible outcomes, and the price of each share approaches the market's assessed probability. When the event resolves, winning shares pay out. Arbitrage keeps prices efficient.
Why It Matters
Prediction markets provide a transparent, incentive-aligned way to forecast events, from elections to protocol upgrades. They are a powerful application of market mechanisms. Their regulatory status and oracle dependence are ongoing considerations.
Related Concepts
Prediction Markets rely on Oracles for resolution and on DeFi infrastructure for settlement. They connect to the broader economy of incentive design.
Frequently Asked Questions
What is Prediction Market?
A market where users trade on the outcome of future events, with prices reflecting probability.
How does Prediction Market work?
A prediction market is a market where users trade on the outcome of future events, with prices reflecting probability. Outcomes are resolved by oracles or decentralized judges. They aggregate diverse information into a consensus forecast. Users buy shares in possible outcomes, and the price of each
Why does Prediction Market matter in Web3?
Users buy shares in possible outcomes, and the price of each share approaches the market's assessed probability. When the event resolves, winning shares pay out. Arbitrage keeps prices efficient. Prediction markets provide a transparent, incentive-aligned way to forecast events, from elections to p