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Author: Admin | 2025-04-28
What Are Prediction Markets? Prediction markets are platforms that enable users to bet on the outcome of an event. Prediction markets are like futures trading platforms but for real-life events. They allow users to trade future outcomes easily. Prediction sites built on the blockchain and that use crypto assets are generally known as Crypto Prediction Sites.Crypto Prediction Sites use blockchain technology and smart contracts to manage prediction pools, individual wagers, and collation of prediction results. They also use technologies such as Oracles to feed the protocol with real-world data used to decide the final result of a prediction pool. Users can bet on these results using supported crypto assets. Crypto Prediction Sites are permissionless, they are devoid of central moderation and restrictions, thus allowing anyone to create a prediction pool and participate in the betting process.How do the prediction markets work?Contemporary prediction markets use the binary option structure for betting on events. On these platforms, participants in a prediction pool are required to choose ‘Yes’ or ‘No’ as the outcome of the concerned event. This translates to a share in the outcome. The shares (Yes or No) must tally to 1 and represent the percentage outcome at any stage. The percentage value of each outcome represents the participants’ opinion and the price of each share. For instance, for an event with a 60% Yes and 40% No, buying a YES share costs $0.60 and $0.40 for a NO share. At the end of the event, the votes will resolve to 1 and 0 representing the outcome. That is, every share for the winning bet will be settled at $1 each while every share for the losing bet becomes worthless. " class="fixed-container" alt=""> " alt=""/> " target="_blank" class="d-block btn" rel="noreferrer nofollow"> --> " class="fixed-container" alt=""> " alt=""/> " target="_blank" class="d-block btn"
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