Major disadvantages of traditional prediction markets arise from their inherent centralization, but blockchain technology can solve this. Blockchain is a system in which a record of transactions are maintained across several computers linked in a peer-to-peer network. Decentralization (the transfer of control and decision making from a centralized entity to a distributed network) strives to reduce the level of trust that participants must place in one another, and eliminates the ability of any one entity to exercise authority or control. In this decentralized environment, there’s no single point of control, making prediction markets more transparent, democratic, and ultimately fair for people who participate.

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