Prediction Markets are the Future of Reliable News: Vitalik

In his latest blog post, “From Prediction Markets to Info Finance,” Ethereum co-founder Vitalik Buterin discusses the growth of prediction markets. He pointed out its potential as a reliable news source, especially after the recently concluded U.S. elections. Vitalik stated that the Polymarket possessed two modes – one for the betting group and another for the general public. 

While the former gambles on trending topics, the latter can avail accurate information from the platform. Buterin stated that Polymarket provides deep insights into political news, unlike regular channels. He brought to focus the Venezuela Election protest, that took place earlier this year. Buterin emphasized that Polymarket provided more information on the situation, compared to other channels and how it irked his attention. He said,

People were willing to put over a hundred thousand dollars on the line, betting that there is a 23% chance that this election would be the one where Maduro would actually get struck down. Now I was paying attention

The Ethereum co-founder praised the prediction market for its transparency in providing sensational news. In the U.S. elections, while many claimed that Kamala Harris would win the elections, Polymarket blatantly revealed that Donald Trump would taste success and Trump won the elections. The prediction market provides accurate information based on the money invested by its users.

Moving onto decentralized autonomous organizations (DAOs), Buterin stated that due to low participation decision-making process became challenging, leading to centralization risks. He suggested that implementing the prediction market in DAO would enhance its operability, thereby improving its decision-making process. 

Elaborating on info finance, the Ethereum co-founder stated that it provides various routes to solve complex issues in decentralized governance. With info finance, users can buy personal tokens, and get scientific peer reviews. This would help to identify results in the market, giving a quick estimate of its reliability.

Overall, info finance forms an integral part of Polymarket. By integrating artificial intelligence (AI) into info finance, accurate predictions can be made. Notably, earlier this month, the prediction platform came under scrutiny after a French trader won $47M on Trump’s re-election. The French regulators were concerned about the platform likely providing unlicensed gambling services.