Decentralized prediction markets such as MYRIAD, launched by Decrypt and Rug Radio, have rapidly gained traction in recent years, enabling users to bet on the outcomes of events such as the U.S. Presidential election.

So what are decentralized prediction markets, and how do they differ from conventional prediction markets? Read on to find out.

What are prediction markets?

Prediction markets have existed in one form or another since the 16th century. They allow users to speculate and bet on the outcome of any future event—as long as someone has set up a market for it.

Users can bet on the outcome of sporting events, elections, legal cases, and anything with a clear or provable outcome. The core concept is very simple: if your prediction is right, you win money. If you’re wrong, you lose the money you used to place the bet.

The mechanics that underpin them are deceptively simple. The price of one “share” in a prediction market ranges from between $0.00 to $1, and its price correlates to its percentage chance of winning, or its “odds.”

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Author: Stephen Graves,Reza Jafery