Truthcoin's Paul Sztorc: 'Buying Predictions is Just like Buying Orange Juice'
Prediction markets sound crazy. People “bet” on what the future will be, and the reported results end up accurate predicting the future. Truthcoin's Paul Sztorc, a decentralized prediction market pioneer, recently joined Epicenter Bitcoin to chat about how the future might look if these markets get off the ground. But first, he explained how prediction markets, such as Truthcoin, work. As Sztorc put it, “a prediction market is a market for buying and selling predictions just like you can buy and sell anything you want—orange juice or milk.” Users put their money where their mouth is; they....
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When it comes to valuation of any commodity there are two main players in the game, producers and investors. Let's take an example from the real world orange juice market. There are producers, the orange farmers, who utilize their land to create material commonly known as oranges. The primary requirements to produce oranges are land, farming equipment and labor. Add the cost of the resources together and the farmer has a base price in which he is willing to sell them. Orange juice manufacturers are buyers of the oranges to produce a good, orange juice, that we all enjoy from time to time.....
Most people in the Bitcoin community know Paul Sztorc for his work on the Truthcoin concept (now backed by Roger Ver and currently in development as Bitcoin Hivemind), but the former Yale statistician also recently joined blockchain startup Bloq (of which Bitcoin Core contributor Jeff Garzik is a co-founder) under the role of economist. In a recent message to the Bitcoin development mailing list, Sztorc attempted to jump-start the conversation on a potential BIP (Bitcoin Improvement Proposal) to enable two-way pegged sidechains on the Bitcoin network. Sztorc noted the inclusion of a new....
Projects that re-invent the Bitcoin blockchain are “like adding a fifth wheel to a car” and “disrespectful to Satoshi Nakamoto,” says Hivemind and Drivechain founder Paul Sztorc. ‘Giant Graveyard of Projects’. The creator of the two Bitcoin sidechain projects made the remarks about non-Bitcoin blockchains in an interview with Tuur Demeester of Adamant....
Some people say money is the root of all evil. Others say its a necessary evil. Most can agree that it's an important human innovation. But it hasn't been widely acknowledged that the human desire for money can actually be used to peer into the future. A Prediction Market (PM) is a place where people can bet on the outcome of an event. If they guess correctly, they win money. If they guess incorrectly, they lose money. People care about their money, so the market price of an event gives us a good answer to the question "Will this outcome happen or not?" It's not magic. It's the economics....
In one of the more exciting developments in the Bitcoin space so far this year, noted Bitcoin angel investor and entrepreneur Roger Ver has given his blessing to a Bitcoin 2.0 application, and it's one that some may have overlooked in the past. Truthcoin, a Bitcoin sidechain designed by Yale Department of Economics Researcher Paul Sztorc, is described as a "peer-to-peer oracle system and prediction marketplace."The platform is a decentralized method of bringing external data, such as the price of gold or the weather in a particular city, to the blockchain, which can then be used as the....