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The following guest post is courtesy of Cahill Puil, the founder of Byte Media Group, a Strategic Marketing Consultancy that helps blockchain and technology companies go beyond beta. He acts as an advisor to ZeroSum.
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Prediction platforms and cryptocurrencies are a match made in heaven for a number of reasons. The Internet has played host to prediction markets in the past, but many have been forced to shut down or limit operations due to regulatory issues. However, there has been a recent trend in such platforms being developed on the blockchain – where transactions are made in that platforms tokens.
One of the prime reasons prediction platforms have caught a second wind lately is that cryptocurrencies are still at a stage where they are a speculative asset. Their value depends to an extent on how sanguine people are of their future. This is why we see the prices of bitcoin and its kind swing so wildly. These conditions are conducive for platforms that reward people for making accurate predictions about different cryptocurrencies.
It’s also true that people who trade cryptocurrencies already show an inclination for making gambles. The industry is still the Wild West in many ways and it takes courage to wager any significant amount of money on a digital currency. Prediction platforms are the perfect middle ground between all-out gambling and data-based analysis, allowing players control over their own fate given enough knowledge of the system.
At the same time, such platforms are also of benefit to forex traders. There aren’t a lot of easy ways in which you can test a new trading strategy without losing money. This leaves a lot of traders playing it safe, which may be detrimental to their ability to augment profits. Forex traders now have the option of testing out new approaches in fantasy trading environments that are integrated with prediction platforms.
Here’s a look at some of the top prediction platforms on the market today.
FairLay is a prediction market that uses bitcoin as its native currency. It’s different from other prediction platforms because the bets are user-generated, which means that anybody can create a bets on a binary outcome.
Participants can make predictions about a myriad different kinds of events on FairLay. The most popular theme on the platform is sports. That said, you can wager money on all kinds of esoteric events like whether Mark Zuckerberg will run in the next presidential elections or how many Model S units Tesla will deliver in a calendar year.
FairLay’s users make bets by first picking the odds they like and then putting a certain amount of mBTC (MilliBitcoins) on a prediction. Fees are variable depending on the kind of bet you’re making.
ZeroSum is both a fantasy trading game and a prediction market. The platform is built on the Ethereum blockchain and has its own token, ZFX.
Forex traders can use ZeroSum to take part in peer-vs-peer fantasy trading competitions. Participants make trades using fictional portfolios and the platform determines the results of their decisions by sourcing live data from the markets. This makes it a handy tool for forex traders to try out new trading strategies or observe how fellow traders approach the market.
ZeroSum is also the first ever peer-vs-peer cryptocurrency prediction platform. Users get to take part in prediction competitions where they try to forecast the future prices of bitcion and popular altcoins. The winners of all the competitions are rewarded in the form of ZFX. ZeroSum allows its software to be white-labeled by third parties and used to set up prediction competitions of any kind.
Gnosis is a platform built on the Ethereum blockchain. The software simplifies the creation of decentralized prediction markets for third-party developers.
While most prediction markets focus on specific bets, Gnosis lays an emphasis on the underlying architecture. The main goal is to make it possible for anyone, even those without technical knowledge, to set up a prediction platform of their own. This capability could be used to set up a standard public prediction market around popular events. It could also be leveraged to create private prediction markets, so entities like companies could gauge what employees feel about important decisions.
Gnosis broke out in the cryptocurrency space with a mammoth $12.5M token sale. Since then, the platform has initiated the development of different prediction markets. That includes an upcoming app called Futarchy, which will show how a prediction platform can be used to create a market-based governance paradigm.