Polymarket and BET are two crypto prediction markets gaining significant attention. Each leverages blockchain technology to offer unique features and user experiences. Polymarket has accrued over $750 million in bets on the US election this year, while the newcomer BET has acquired around $22 million since its launch this month.
How do Polymarket and BET work?
Polymarket operates on the Ethereum blockchain and utilizes Polygon as a Layer-2 scaling solution to enhance scalability and reduce transaction costs. This setup allows Polymarket to efficiently handle a high volume of trades without congesting the Ethereum network or incurring high gas fees.
The platform features mostly binary outcome markets, where users can bet on “Yes” or “No” outcomes for various events through a continuous double auction model. Alternatively, markets can be made for multiple outcomes, such as betting on which terms will be used during a political speech. This model ensures dynamic price discovery, with prices representing the probability of an event occurring.
Notably, Polymarket does not require users to hold a native platform token, and it supports self-custodial wallets, enhancing user security and control over funds. The platform also incentivizes liquidity and participation through various reward mechanisms, including liquidity provider rewards and market-specific incentives.
On the other hand, BET is a Solana-based prediction market platform launched by Drift Protocol. It capitalizes on Solana’s high transaction throughput and low fees, making it an attractive choice for decentralized applications. BET allows users to engage in event-based predictions by purchasing YES or NO shares on the outcomes of real-world events. The platform also offers structured bets, allowing users to implement complex trading strategies.
Differentiating asset collateral and betting mechanisms
Polymarket’s auction system allows for dynamic price discovery by representing the probability of an…
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