The first fully decentralized prediction exchange, building on Solana.
The first fully decentralized prediction exchange, building on Solana. An exchange offers a platform for traders to trade the outcome of uncertain events, whether that be sports, politics or current affairs. It differs from traditional sportsbooks by allowing traders to take positions against each other, rather than a bookmaker or against ‘the house’ . Instead of being limited to the odds set by bookies, and only having the option to back a certain outcome, an exchange allows users to go head-to-head against each other by either buying or selling (sometimes referred to as “backing” or “laying”). In many ways a prediction market operates just like an asset (stocks, crypto) exchange - except the underlying assets have a known positive payout if the speculator is correct and a zero payout if the speculator gets it wrong - these are sometimes referred to as “binary outcome markets”. Another key difference of prediction exchanges as compared to bookmakers sites and many asset exchanges is that users can also ‘sell’ positions (sometimes referred to as ‘laying’ ). This allows the user to profit if they believe the outcome won’t occur. While the payout at the point when the market resolves is binary (i.e. a payout or no payout) it is possible to buy and sell (or sell and buy) to close out a position before the market resolves - meaning it is possible to make a profit trading fluctuations in the market over time - just like on an asset exchange.