Friday, June 2, 2023

Insurance-backed Prediction on SOL


The prediction market is a multibillion-dollar industry that dates back to the dawn of entertainment. It dates back to the 1500s, when people were speculating about who would be the next Pope.

The prediction market initially appeared in the US in 1884, when people on Wall Street made political predictions. These examples demonstrate that the connection of this industry with entertainment.

The rapid advancement of technology and theatric innovation brought us to new forms of entertainment. Despite this, the prediction markets continued to draw a large number of consumers.

It emphasizes that, despite its centuries-long history, this business has adapted to meet present demands. The increasing risk of losing money reduced the market’s enjoyment factor.

Time for Change

An expert in gamified finance, Nezha examines the centuries-old financial method that is still gaining favor today.

In reality, we’re looking at an 11.5 percent annual growth rate from 2019 to 2027. By 2027, they predict that the global prediction industry might reach $120 billion. The fact that a major portion of it will be in the crypto prediction sector is noteworthy.

To enter this market, the new DeFi protocol uses a distinct concept from first-generation prediction markets. It basically makes Nezha just the next prediction market protocol.

DeFi, according to Nezha Co-Founder Ivan Gowan, will have the most impact on the crypto prediction market. Decentralized technology will become more widely available, allowing for unprecedented innovation.

However, there are several distinctions between DeFi prediction markets, including technology, philosophy, and blockchain platforms.

Prediction Markets De-risked

Nezha, a Solana-powered prediction market, can manage up to 65,000 TPS, compared to Ethereum’s 13.

It also allows Nezha to execute transactions for a fraction of the cost, which is around $0.00025 on average. Nezha, on the other hand, isn’t limited itself to Solana, as multi-chain is the crypto industry’s future. That means Nezha will be available on the Cardano and Ethereum blockchains once they launch Solana.

The most intriguing aspect of Nezha’s notion, though, is this. Users on Nezha do not have to worry about losing their money. Instead, they’re betting on Nezha with the money they’ve earned.

The protocol has now removed the looming sword of financial loss that users of prediction markets fear. Simultaneously, this allows it to capitalize on the entertainment value of first-generation prediction markets.

In short, Nezha is rejuvenating the sector by lowering the risk of losing staked funds.

Nezha creates its yield through clever yield routing, which assures the maximum potential return on customer funds. The liquidity engine gathers user funds first, and then distributes the pooled funds to multiple yield-based protocols.

Market-leading DeFi platforms like Solend or Tulip are examples for the protocols.

Original Iteration

Nezha has created a prediction draw game to celebrate its launch. Every user who participates in the prediction draw will receive six numbers. How many tokens they have invested determines the quantity of entries accessible to a user. These entries will include a unique identification number as well as a set of numbers that will determine the winner.

The amount you can win from the yield pot depends on the tier because Nezha pays out in tiers.

Nezha Prediction Markets

Anyone interested in using Nezha must first invest their tokens in the protocol. Each game’s staking phase will last till the end. They shift funds to yield-generating procedures determined by Nezha’s digital asset management partners.

To mitigate the risks, these specialists take into account the default hazards of the particular protocols.

Nezha will begin earning daily yields once these money are deposited into the external DeFi lending processes. Every week, these monies are added to Nezha’s liquidity pools.

The locking time will cease when the game cycle is completed. The customers can then withdraw their principal, as well as any gains, if any, at any time. They can also retain their funds staked and participate in the next game cycle if they wish.

According to Gowan, it was only the financial losses that kept the prediction market from reaching its full potential. It was so powerful that users feared losing money, even if the prediction market was lucrative. However, with Nezha’s arrival, the industry will forever shift.

Nezha, according to the architects of the next-gen protocol, welcomes us into Prediction Market 2.0. So the concept isn’t just another brand trying to carve out a niche in this exciting market. Rather, it aspires to be a true disruptor, one who can bring the prediction market to the (crypto) public.

Vincent Sanchez
Vincent Sanchez
Vincent Sanchez currently writes articles for Cryptoconstellation. He completed his Msc in finance and had a successful career as an accountant. Vincent enjoys travelling and working out.

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