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Moving on from Traditional Prediction Markets

PlotX is a non-custodial prediction protocol that enables users to predict and earn rewards. It provides fast, simple & highly rewarding DeFi prediction markets and makes it super easy & fun to participate in.

But, how and more importantly, why did PlotX have to do what it does?

Traditional Prediction Markets — A problem-ridden gateway to predictions?

For the most part of the short history of prediction markets, Traditional Centralized prediction markets dominated the narrative of prediction markets. However, traditional prediction markets come with their own set of problems which have hindered their mass appeal.

The major challenges in the traditional prediction markets are

  1. Counterparty Risk
  2. High Cost
  3. Inability to showcase provably fair settlements.
  4. Liquidity

These challenges reduce the effectiveness of the platform and compromise on the user experience. Let’s take up these major issues one by one below:

Counterparty Risk

Having a counterparty involved in the prediction market is the text-book definition of counterproductive. It doesn’t only jack up the fees for participants but also introduces a host of other problems, leaving participants with very little to cheer about.

Centralized prediction markets are closed and unreliable, meaning they operate under the authority of a few custodians. Participants participating in these markets run the risk of being denied proper information and visibility of how odds are calculated due to their centralised nature.

The centralized inefficiencies make up for a lack of transparent system which is largely trust-driven and can also fall prey to undue influence.


Traditional Markets does not show up alone at the party, it brings along a middleman/central authority to the party. And, as it turns out they can take a large bite out of your pie. The transaction fee can sometimes even blow through the roof — both on entry and reward distribution. Not to mention, it ends up leaving a hole in the participant’s pocket.

Inability To Showcase Provably Fair Algo

Users in the centralized ecosystem need to trust the “market maker” or the “house” with their transactions and cannot expect a transparent, immutable processing and settlement mechanism.


Centralized prediction markets impose low betting caps, which prevent high-confidence actors from sufficiently expressing their conviction and moving the markets by trading higher amounts. This limits the predictive powers of these markets. The risk of markets being shut down by regulators also discourages participation.

Anything that discourages more and more users to participate is a constraint to liquidity for that platform. Think of it as a clogged tap where the liquidity is low and the information can not flow freely.

So, let us start all over again!

We started with PlotX and let us make the article come full circle by ending it with PlotX. Remember the Why part?

PlotX effectively looks to solve these pain-points by bringing a community-driven approach to prediction markets.

  • On PlotX, markets are created automatically on-chain via smart contracts and not via certain individuals (which are the primary trouble-makers in traditional prediction markets).
  • Different from other blockchain-based prediction markets, Plotx uses an Automated market Maker that automatically creates new markets with options and odds, without the need of a counterparty, and hence we draw parallels to Uniswap.
  • As a direct result of the decentralized nature of PlotX, there is no third-party in the middle taking their cut of the transaction. The only place where the rewards of the market will end up is in the winners’ pockets.
  • PlotX follows a pragmatic approach for predictions, whereby results can settle with mathematical equations that are based on decentralized price feeds of any asset. Anyone can check out the formulas used to settle the market and verify the results.
  • The uniqueness of the PlotX model is its risk spread mechanism. Meaning, for the first time in prediction markets, you have the option to choose the middle ground instead of having to go all-in or all-out. Your options on PlotX vary, from 20%-in to 100%-in (all-in).
  • PlotX gives you three main time-frames to choose from- Hourly, Daily, and Weekly. Thus, you don’t need to lock your funds for too long and can claim your earnings in a much faster time frame.
  • PlotX, with the help of Govblocks, preserves its tenets of decentralisation and combats the ‘trust problem’ of centralised prediction markets by resolving disputes via the community governance and retaining the flexibility to add more to the platform over time.

Has it caught your attention yet?

This is just the beginning as PlotX sets out to conquer many more citadels and tear down the glass ceiling. With amazing features and a dedicated team behind to ensure pixel-perfect execution, PlotX has a lot more going for it.

Check out the PlotX Alpha

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