To capitalize on the increasing popularity of blockchain trends such as decentralized finance (defi), Zeitgeist will launch the new native prediction system for Polkadot. This is to broaden the range of opportunities available to retail crypto investors.
New network builds on Substrate and exclusively launched on Kusama long before Satoshi Nakamoto published the Bitcoin whitepaper. This sparked a rush of advancement, prediction markets formed the basis of organized betting, frequently on political outcomes. For millennia, these marketplaces existed. These assist in collecting crowd-sourced knowledge in the manner of betting options, which are still popular today.
The blockchain version of these economic models supports the same concept: speculation calculates the likelihood of informative events. Unlike bitcoin trading, these markets are binary. It means that a contract between two parties results in either a positive or negative consequence.
Predictions made by these methods are thought to be relatively accurate. These also match or outperform alternative findings from focus group discussions, professionals, and polling data. As prediction markets collide with the latest defi frenzy, one business is exploring new applications for blockchain’s architecture in yet another significant extension of the horizons of decentralized finance.
Zeitgeist is a firm that recently emerged from stealth mode. It develops a new base layer prediction market built on Substrate, Polkadot’s development framework.
Zeitgeist has released its road map after presenting the initiative and winning a $1.5 million seed round can syndicate of investors. The project will be regulated only by users holding its native ZTG coin. It plans to launch its “Battery Park” testnet and a Kusama parachain by the end of 2021.
Unlike the other prediction markets that function as decentralized programs placed on top of blockchains, Zeitgeist constructs its chain, or base layer, available solely on Kusama. Unlike Polkadot, Kusama intends to host experimental methods while providing a testing environment that mimics real-world settings. It will allow the prediction market to scale while lowering transaction costs. It also accesses parachain resources and allows for forkless updates.
Typically, cryptocurrency exchanges deal with a small selection of cryptocurrency pairings and derivative products. On the other hand, Zeitgeist intends to feature thousands of distinct markets. In the beginning, Zeitgeist will help markets such as bitcoin, sports and esports, government, entrepreneurs, and insurance.
Together, this will create enormous potential opportunities for retail traders looking to speculate on various outcomes. At the same time, they can also analyze sentiment across informational domains.
Over time, the platform hopes to consolidate the network’s information and data to better decision-making. Thus, picturing itself with a future center for Web3 forecasts. Surprisingly, it also introduces a tool dubbed Futarchy, which will use lessons from its financial derivatives to evolve the platform’s governance continuously.
Furthermore, its foundation on Substrate will aid Zeitgeist’s compatibility with Polkadot if it chooses to develop on a network parachain in the future.