Paul Sztorc

Truthcoin & Prediction Markets – From Information-Overload to Crowd Intelligence

Prediction markets are considered one of the most promising applications of blockchain technology. Although the concept and some early implementations have existed for years, decentralized prediction markets present a number of advantages to their centralized counterparts.

joins us to discuss Truthcoin, a “Peer-to-Peer Oracle Protocol which absorbs accurate data into a blockchain so that Bitcoin-users can speculate in Prediction Markets”. We dive deep to explore the advantages of decentralized prediction markets, their various real-world applications, and their potential to revolutionize the creation and propagation of knowledge in our society.

On this episode, we are thrilled to introduce a new co-host on Epicenter Bitcoin, Meher Roy. He has a biochemical engineering background and previously worked as an adviser to HyperLedger. Since discovering Bitcoin, he spends most of his free time understanding blockchain technology and its potential impact on our lives. We’re confident that Meher will bring a high level of understanding and critical thinking to the topics we cover, and we’re certain our listeners will be as happy as we are to have him on the show.

Topics we discussed in this episode
  • What are prediction markets and why they are useful
  • The mechanics of prediction markets
  • The potential for prediction markets to provide useful aggregation to today’s abundant information
  • The parallels between crowd intelligence and artificial intelligence
  • The different components of Truthcoin and the state of the project
  • How Truthcoin differs from other decentralized prediction markets
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  • The outcome of the Proof of Work – Proof of Stake debate that was part of the episode entirely depends on the assumption one makes about “what Bitcoin is”.

    What it “is” will be defined by what it will be used for, or more by what the (blockchain) technology and its various implementations will be used for, i.e. consumer demand will define what these distributed database maintaining p2p networks are.

    Paul is correct that there is nothing cheaper than POW under the assumption that Bitcoin is (and will be used as) “digital gold” or some counterparty free digtial world currency whose intrinsic value is defined by work necessary to produce it.

    I don’t think that there is much / any demand for such a comodity. But we will see.

    I made this post (… under the assumption that the highest demand for blockchain based services will come from all kinds of use cases that don’t require a digital gold. In other words I assume that any blockchain network will be subject to users judging the “services” of the respective blockchain network like they judge a company’s services. Therefore I assume that the main parameter by which to judge POW vs. POS or any public consensus algorithm is “security per cost”.