Vitalik Buterin emphasizes the potential of prediction markets, such as Polymarket, to facilitate “info finance.”
Vitalik Buterin, the co-founder of Ethereum, has emphasized the potential of prediction markets to transform from basic wagering platforms to “info finance” conduits that can revolutionize the way users collect information on social media, science, news, governance, and other related fields.
In a November 9 article titled “From prediction markets to info finance,” Buterin advocated for the concept. In his view, info finance is a three-sided market in which gamblers make predictions, viewers read predictions, and the market projects forecasts about the future as a public benefit.
Buterin stated that the expansion of prediction markets to accommodate this new category would necessitate the use of finance “as a means of aligning incentives” in order to offer viewers valuable information.
According to Buterin, “you can use market prices to infer a lot of information about the world. This means that people make various buying and selling choices based on their own beliefs about the future, as well as their own requirements, such as their risk preferences and the need to hedge.”
The Ethereum co-founder has stated that information finance is a “particularly potent category” with applications in scientific peer review, personal tokens, public goods funding, advertising, and decentralized autonomous organizations (DAOs).
Info finance provides a variety of solutions to decentralized governance issues in DAO applications. For instance, forecasting the ballots by AI and humans, in addition to the decision of important propositions by prediction markets, can reduce centralization risks.
Buterin observed that the “engine” is the market, while the “steering wheel” is a non-financialized trustworthy mechanism. The balance between the two is crucial.
Buterin is of the opinion that AI technology would be crucial in the acceleration of information finance. This is due to the fact that the majority of the concept’s “interesting” applications are “micro” concerns that involve millions of mini-markets for low-consequence decisions.
According to his concept, AI would enable consumers to obtain high-quality information on markets with a volume of $10.
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