Building Games with Ethereum Smart Contracts: Intermediate Projects for Solidity Developers

© Kedar Iyer and Chris Dannen 2018

Kedar Iyer and Chris DannenBuilding Games with Ethereum Smart Contractshttps://doi.org/10.1007/978-1-4842-3492-1_10

10. Prediction Markets

Kedar Iyer¹  and Chris Dannen¹

(1)

Brooklyn, New York, USA

 

On the gambling spectrum, prediction markets are somewhere between proposition bets (“prop” bets) and stock markets. They don’t enjoy the full legitimacy of stock markets, but they tend to be less silly and address more serious matters than your standard prop bet. Prediction markets start by posing a yes/no question about a future event with a verifiable answer. Users can then bet on the possibility of the event by buying or selling shares in the market.

Here is an example of a typical prediction market question:

Will ...