The prediction markets have always captured the attention of many actors, whether political elections or sporting events. But today, with the boom of blockchain and decentralized finance (DEFI) , these platforms take on a whole new dimension. It is in this context that Polymarket, a decentralized prediction market, is distinguished as an innovative alternative.
Table of contents
What is a prediction market?
A prediction market allows its users to bet on the outcome of a future event. Users are betting on the results of real events, such as a presidential election, a decision of economic policy or a sporting event. Unlike traditional bets, prediction markets use " wisdom of crowds ", a phenomenon that collective decisions can sometimes be more precise than those of individual experts.
Polymarket presentation
Polymarket is a prediction market platform launched in 2020. Based on blockchain , it allows its users to speculate on a variety of subjects ranging from electoral results to global economic trends. Unlike other centralized platforms, Polymarket is fully decentralized, thus guaranteeing total transparency and increased accessibility for its users.
How does Polymarket work?
On Polymarket, users impress cryptocurrencies, mainly USDC USDC a stablecoin indexed to the US dollar), to bet on predictions. The process is simple: you select a question, as "will Bitcoin exceed $ 100,000 by the end of the year? », And you bet on the answer you deem the most likely. When the event is realized, those who bet properly recover their earnings in proportion to their initial bet.
Polymarket and decentralization
What makes Polymarket unique is its integration into decentralized finance ( DEFI ) and its decentralized nature. Unlike the traditional centralized prediction markets, such as sports betting or casinos, the platform has no fixed commission taken by the platform. In other words, Polymarket works as a zero hope game. This means that each bet contributes directly to the gains of the participants, without intermediaries which takes a share of the bets. This lack of commission direct debit allows users to bet in a transparent and fair environment, a major advantage in the face of centralized platforms which often take a commission, thus reducing the potential gains of bettors.
Types of predictions
On Polymarket, the subjects of predictions vary enormously. Users can bet on major political events, such as elections or legislative decisions. They can also be interested in economic events, such as stock market trends or cryptocurrencies or even cultural or sporting events.
Polymarket in the face of other prediction markets
In terms of competition, Polymarket is distinguished from other platforms such as Augur. Its main advantage lies in its ease of use and its intuitive user interface. Unlike certain competing platforms, Polymarket does not require in -depth knowledge in blockchain, which makes it accessible to a wider audience. An emerging competitor makes its place on the Blokchain Solana trading options but also for a prediction market named BET, it is Drift .
Why is Polymarket unique?
The platform stands out for the simplicity of its interface and its orientation towards decentralized finance. Unlike certain platforms that require a native token, Polymarket works directly with stablecoinS likeUSDC, making the user experience more fluid. In addition, decentralization makes it possible to have a zero hope game, unlike centralized bets where part of the bets is taken in the form of a commission.
Here, all the mised funds are redistributed between the winners, which maximizes potential gains for each user. This transparency and equity are weight arguments for those who wish to bet without undergoing the hidden costs of traditional platforms.
Cryptocurrencies on polymarket
Polymarket usesUSDC as the main currency of exchange. This stablecoin, backed by the US dollar, allows users to minimize the risks linked to the volatility of cryptocurrencies. It is important to note that Polymarket does not allow direct trading of Tokens, but focuses only on predictions, unlike Drift.
The risks
Like any prediction market, Polymarket has risks. The markets are volatile and users can lose their bets if their predictions are incorrect. In addition, the decentralized nature of the platform means that there is no appeal in the event of a dispute.
Polymarket and regulation
The prediction markets are often a slippery terrain in terms of regulation. Polymarket, although innovating, is no exception to this reality. The platform has already drawn the attention of regulators, especially in the United States, where money games and bets are strictly supervised. However, its decentralization makes it difficult to regulate strict.
How to use it?
1. Connection with a crypto wallet :
- When you use a wallet to connect, you put stable currencies like the USDC (USD Coin), because Polymarket uses this currency for all transactions.
- You must transfer the USDC to the Polygon ( Layer 2 of Ethereum ) to use it on the platform. If you don't have one yet, you can convert other Cryptocurrencies into USDC to an exchange platform, then send them to Polygon .
- The advantage of this method is that you keep control of your funds thanks to your personal wallet.
2. Connection with an email address :
- If you choose to connect with an email address, Polymarket creates a “Custodial” portfolio (managed by the platform). Your funds are then held by Polymarket.
- Fiat payments (such as USD) thanks to integrated payment services (such as a bank card or other options offered by third parties).
- Funds are automatically converted to USDC to be used on the platform.
Summary: In what form are the bets?
- USDC (USD Coin) is the reference currency used on Polymarket, whatever the connection mode.
- You can feed your account withUSDC (in crypto) or with FIAT funds (converted into USDC).
Important points to note:
- If you are using a crypto wallet, be sure to have enough matic (the native Polygoncrypto) to cover the transaction costs.
- If you opt for connection by email, your funds are kept by Polymarket, which can limit your direct control compared to a non-custodial wallet.
More information here
The advantages of using Polymarket
Polymarket has several advantages. First, thanks to its decentralization, it works as a zero hope game. All the funds required by the participants are redistributed between the winners without a platform taking a significant part of the bets. Unlike sports betting or centralized casinos, the platform does not take a commission, thus maximizing user gains. In addition, its transparency: the results are published on the blockchain, which guarantees the integrity of the process. Finally, the diversity of subjects offered allows everyone to find an area that interests them.
Polymarket limits
However, the platform also has its limits. It remains relatively young and has not yet reached massive adoption. In addition, some markets lack liquidity, which can make exchanges less dynamic.
The future of Polymarket
The future of Polymarket seems promising. With the growing interest in prediction markets and decentralization, Polymarket could become a reference in its field. The platform continues to innovate, regularly adding new features and covering new events.
Conclusion
Polymarket is a decentralized prediction market that relies on the blockchain to offer a transparent and fair platform. By adopting a zero hope game model, standing out from traditional Paris platforms by maximizing user gains. If you are looking for a way to invest in future events while taking advantage of decentralization, Polymarket can be an interesting option, with all the advantages and risks that this involves.
Faq
What is Polymarket? Polymarket is a decentralized prediction market platform where users are betting on the result of future events.
How does Polymarket work? Users are betting cryptocurrencies, mainly the USDC , to bet on the outcome of real events. All funds are redistributed between the winners without commission taken by the platform.
What types of events are covered? Polymarket covers a wide range of events, especially political, economic, and cultural.
What are the risks linked to Polymarket? The main risks are the volatility of the prediction markets and the possibility of losing its bet if the prediction is incorrect.
Does Polymarket take a commission on gains? No, Polymarket is a zero hope market. This means that gains are redistributed between the winners without a commission being taken by the platform.
Yohan Uzzan
Training engineer, I quickly became interested in the field of finance. Convinced that decentralized finance has a bright future ahead of it, I participate in its democratization by developing Crypternon.
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