Using BlockChain for Prediction Markets is not new. Augur, based on Ethereum, has implemented a first pass. Prediqt, is an EOS version. In both of these, there is an app and a number of Buy and Sell markets for standard political events. You stake tokens to take a bet, and your bet is resolved by a decentralized group of “oracles”.
But what if the “bet” itself was encapsulated in a non-fungible token, using the dGoods standard? Imagine there was a “Yang2020” coin that you could hold in your dGoods wallet and that would pay off at face value automatically if Yang was elected?
It’s entirely possible — and is perfect for our blockchain Lynx.
Here’s how it could work.
1. There is an automated facility for creating new prediction coins.
2. Anybody (say @jeremy) can create a new coin, for example “Yang 2020”. The person creating the contract is betting that the contract *will not* come true
3. @jeremy. deposits 1,000 LNX in the contract for Yang 2020.
4. Now, anybody who agrees with the bet and the oracle can come and issue more supply. All they need to do is deposit more LNX.
5. Any seller of the bet can list it on the dGoods contract. So @jeremy could list his “Yang2000” sale for $0.15. And anybody, anywhere could interact with that token and automatically buy it from jeremy
6. The person starting the contract is the initial oracle. If there are disagreements, a dispute is started. There is a fixed threshold cost X of bring a dispute — all can contribute. The contract creator must match X, otherwise he forfeits the dispute.
7. The dispute is settled by a decentralized vote of judges who get X. The winning party gets back X.
This sounds complicated.
Granted, this all sounds complex, because its new. But it’s really not. These “dGoods Bets” are really just the same as “vegas bet tickets” that can be cashed in, exchanged or sold. Expect this in early 2020 on LynxChain.