Decentralized Prediction Markets

If something is being centralized, there’s a single point that does all of the work involved in any given action. on the other side, if something is decentralized, there are multiple points that do the work.

Since centralized platforms require all data to go through one place, it’s very easy to track information. For example, a betting platform which collects massive amounts of data of its players thanks to the fact everything goes through a single point.

Gmail, Google’s email service, has such incredible spam filters because it can see into almost everyone’s email. In much the same way, Facebook is the king of data collection because literally billions of users interact with the platform every day. In a nutshell, centralized platforms make for extremely easy collection of data.

The ultimate goal of STOX is to introduce the general public to the features of a decentralized prediction market platform. Prediction markets involve trading stock-like equities based on the likelihood of certain events. If that event takes place — say, if your President wins — then you get paid. The market determines the price of each “stock” based on the perceived likelihood of that event occurring.

Prediction markets are an exchange where any individual or organization can tap into the wisdom of the crowd to ask any question or predict the result of any event. STOX utilizes the relevant event in the form of a stock. Participants can trade that stock to trade on the outcome of an event.

The STOX app will be open source and implement the user side of the model, including on-chain access over Ethereum to STOX smart contracts and access to content, listings, and event metadata from decentralized cloud storage. Below are some of the core features of the platform:

  • Create markets and categories
  • Create predictions
  • Trade with peers
  • Take positions at any time, not just upon a specific result (enabled by the STOX Liquid Flow trade engine)
  • Use STX tokens for numerous global prediction trades
STOX delivers an “unparalleled peer-to-peer trading experience”.

Stox is meant to offer a peer-to-peer trading experience, based on blockchain, crowdsourced information, and runs using an algorithm that assesses what the crowd thinks about a specific event. The platform itself will act as a “dynamic” platform, meaning prediction patterns and assessments change based on events occurring daily.

By utilising blockchain technology and cryptocurrency, STOX plans to reach mainstream audience and to set a new standard in the prediction markets industry.