The technological advantages of the present day have made things like artificial intelligence, virtual reality, and even self-driving cars possible, but one innovation with the potential to bind them all together is blockchain technology. A decentralized ledger known to impart security, transparency, and immutability to data while enabling value exchange, blockchain has become a major part of the next generation tech. Gaining widespread adoption, the combination of crypto and blockchain has the potential to truly change the world.
However, it is worth noting that the early adopter of this combination is the gambling industry, and today, crypto prediction markets are the forerunner in the gambling space made possible only by the blockchain evolution.
So, what is a Crypto Prediction Market?
A Crypto Prediction Market is a form of gambling platform where users can bet on future outcomes in a decentralized space. With no central authority that dictates the winning odds, bettors in the market only compete against each other in a fair and open market. The use of cryptocurrencies and blockchain technologies erase geographical restrictions and other barriers to participation, allowing users from all over the world to place wagers in crypto assets and win this same crypto for successful bets.
Crypto Prediction Markets and Web3, A Combination Made Possible by Blockchain Technology
The introduction of crypto prediction markets to the list of various gambling options is made possible by Web3, which has the blockchain tech to thank for its existence. Also known as the decentralized web, Web3 is the third and the latest iteration of the internet.
The first version of the internet (Web1) was only readable pages, while the second version (Web2) introduced social platforms and encouraged content creation. Web3 differs from its previous two iterations because it directly incorporates blockchain, enabling users to maintain complete control over their data without relying on any third-party or centralized infrastructure. Apart from offering users full ownership of their creations, it also provides a secure, leveled playing field for anyone with the skills to develop, deploy, and monetize their projects for the entire community’s benefit.
The decentralized Web3 applications seamlessly connect with blockchain protocols to enable the uninterrupted, trusted, and provably fair operation of crypto casinos and other financial platforms that support prediction markets. The prediction market models find extensive application in gambling and DeFi analogues of traditional financial instruments like futures and options, and more.
The role and impact of crypto prediction markets in the real world have been foreseen by many industry stalwarts. Some of them have also been vocal about its potential to bring changes to many present-day solutions. Few such comments in this regard include those of former Coinbase CTO Balaji Srinivasan and Ethereum Co-Founder Vitalik Buterin.
The Future of Gambling Lies with Crypto Prediction Markets
Web3’s support of blockchain is what gives cryptocurrency the ability to change the world of gambling. The combination of crypto and blockchain is a drastic improvement over the current technology behind prediction markets, as this new pairing will make transactions quicker and more secure than ever before. Crypto gambling will also be far cheaper than standard gambling, as the decentralized nature of crypto casinos leads not only to lower fees but also to increased transparency.
Crypto prediction markets are far less restrictive than the standard online gambling platforms of today. With no central authority, the practice of banning players for winning too much and too often, as well as the rigged gaming system will come to an end. This way, users can be assured of their winnings and losses to be part of a fair game.
On the other hand, the use of Web3, VR and AR technologies in crypto prediction markets paves the way for a more immersive and interactive gambling experience, which most of the current gambling platforms lack. Many blockchain projects like Augur, Hedgehog, Gnosis, Polymarket and the newer Reality Cards, which recently finished their Beta phase and are set for a token launch, are already providing the necessary backbone for enhanced gambling experience by supporting play-to-earn gaming, NFT integration and more. The same mechanism used in Reality Cards will also be used in their own launchpad Launch Cards where the token sale will be hosted.
With more games offered on these platforms, users can experience a more entertaining way of gambling, winning money as well as NFTs without any local legislations or regulations depriving them of the fun. After all, having fun shouldn’t be a crime and it is just a matter of time before crypto prediction markets-based gambling solutions become the mainstay.