Zeitgeist is built on top of the Substrate framework for building blockchains, the most advanced tech of its kind.
No single entity controls the Zeitgeist network. It is based on peer-to-peer technology and distributed governance.
Zeitgeist is powered by ZTG. ZTG is the native currency of Zeitgeist that plays a critical role in market creation and resolution.
Since Zeitgeist is built on its own layer-1 chain with optimized runtime logic, it will be affordable even with high traffic.
An individual, known as an aggregator, wishes to obtain a prediction on a particular variable. They create a new market and pose a question about the variable they want to test.
What will the price of Bitcoin be on December 31, 2020 at 23:59 UTC according to the CoinAPI feed?
Traders, whom each hold different views and information regarding the variable in question will take position in the market by buying market shares.
After the conclusion of the event, the designated oracle will report the outcome of the question to Zeitgeist.
If any participant sees that the designated oracle reported incorrectly, they may start a dispute of the market by challenging it in a decentralized court.
Once the market outcome is finalized, traders who took the correct position in the market can exchange their shares for 1 ZTG. Traders who took the wrong position will have shares that are worth nothing.
Zeitgeist is governed by the holders of the ZTG using a mix of normal token voting and a new futarchy model. Zeitgeist eats its own dogfood by making governance decisions via prediction market based futarchy.
Zeitgeist is an evolving network that will change and adapt over time. It does this through a sophisticated on-chain governance process.
Zeitgeist uses prediction markets based futarchy to determine its direction and policy. Game theory says that this should be more efficient than token voting alone.
The court is the native dispute resolution system.
Holders of ZTG can stake their tokens in order to join the pool of jurors. These jurors are randomly selected whenever an oracle dispute is made for a particular market.
The jurors of the court will be charged in selecting the real outcome of the market. Court decisions can be challenge, which increasingly expands the number of jurors that are selected - each time raising the stakes.
If jurors are found by a later appeal to have resolved an oracle decision incorrectly, they will be slashed.
After a number of quorums are created and asked the real outcome of a market, if there is still a dispute the case will move to a global vote by all ZTG holders to report the outcome.
Sports and eSports betting sites can allow fans to further share in the excitement of their favorite team by allowing them to trade positions in real time.
Prediction markets on politics are one of the best mechanisms for aggregating information about political races that we know of. They also allow you to hedge again possible outcomes.
The prices of cryptocurrency are notoriously volatile. Zeitgeist allows traders to take long or short positions on cryptocurrency prices, creating a pseudo-financial contract.
Markets for various events can act as decentralized insurance by hedging outcomes.
It's difficult to predict whether a particular startup may succeed. Prediction markets can help by allowing traders to take position on the success or failure of them.
Organizations can run their entire decision making process on-chain by acting on the information aggregating principles of prediction markets.