Markets whose resolution depends on on-chain or automatically verifiable data, needing no human oracle.
Cluster: Oracle & Resolution
Markets whose resolution depends on on-chain or automatically verifiable data, needing no human oracle.
Referenced in 2 articles
Explains the SKC (Srinivasan, Karger, Chen) mechanism for prediction markets on unverifiable outcomes. Markets resolve using crowd consensus as the outcome, with delta-based scoring rewarding participants for moving markets toward final consensus. Enables markets for subjective questions lacking ground truth.
Proposes a mechanism for prediction markets where outcomes cannot be objectively verified. Uses the last reporter's prediction as a reference point, creating incentives for truthful reporting through negative cross-entropy payments. Proves truthful reporting is a perfect Bayesian equilibrium.