One thought on “Who decides on the outcome of a prediction market?

  1. Arti says:

    In decentralized prediction markets, oracles are needed to submit and verify information on real-world events & outcomes to the blockchain for the smart contracts to initiate the right payouts. I recommend this article for more information about the alternative kinds of oracles. In traditional centralized prediction markets, the company running the market would fill the oracle role when the event has occurred and pay out the profits to the correct predictors. Oracles can come in alternative forms which include software, hardware, or humans and can be centralized (trusted parties) or decentralized. Oracles are a highly interesting field of study by itself as they are not only crucial for prediction markets but can also connect any kind of smart contract with the real-world. Here’s where so-called oracles come into play, which can be seen as unbiased “judges”.

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