Top 7 prediction market platforms on blockchain in 2024

What makes decentralized prediction markets different?

The rise of blockchain-based prediction platforms has marked a turning point in how people bet on event outcomes. Unlike traditional betting sites, these platforms leverage blockchain technology to provide fairness, transparency, and absolute security for all participants.

What makes the best crypto prediction site attractive is that they eliminate the need for centralized intermediaries. Instead, smart contracts automatically handle the entire process—from accepting bets to distributing rewards. Users can use cryptocurrencies to wager on anything, from political elections to crypto price fluctuations—all happening on a platform protected by blockchain technology.

Another advantage is global inclusivity. Anyone anywhere with an internet connection can participate. No permission required, no strict geographical restrictions, and no need to go through cumbersome approval processes of traditional organizations.

The collective intelligence of predictors from around the world creates a valuable data source. The more people participate, the more reliable the prediction results become, reflecting market sentiment in real-time. This is why many analysts view prediction markets as an early indicator for upcoming events.

How it works internally

Core components

A decentralized prediction platform is built on three main elements:

Smart Contracts: These are automated code snippets that execute pre-programmed terms. They manage the entire lifecycle of a bet—from when a user places a wager to when they receive payment. This eliminates human errors and minimizes fraud risks.

Oracles: These are external services that connect the real world with blockchain. When an event occurs, oracles gather accurate information from trusted sources and feed data into the blockchain, helping smart contracts know the actual outcome.

Outcome Tokens: Every time you place a bet, you receive tokens representing that wager. Their value fluctuates based on market supply and demand until the event concludes and is settled.

Process from A to Z

A prediction on the prediction market proceeds through these steps:

1. Market creation: The market creator poses a specific question, such as “Will Candidate A win the election?”, then sets options (usually “Yes” or “No”).

2. User betting: Participants buy tokens corresponding to the outcome they believe will happen. The token prices reflect the current probability assigned by the market to each result.

3. Outcome determination: When the event ends, oracles verify information from trusted sources and submit data to the blockchain.

4. Reward distribution: Smart contracts automatically pay out to those who predicted correctly, based on the number of tokens they hold.

Main advantages

Censorship resistance: Due to their decentralized nature, these platforms are almost impossible to remove or manipulate by governments or external organizations. This ensures a fair playing field for everyone.

No intermediaries needed: Transactions occur directly via smart contracts. Costs are reduced, and human error risks are minimized.

Global accessibility: No geographical restrictions, no need for complex bank accounts. Anyone with a crypto wallet can participate.

Full transparency: All transactions are recorded on the blockchain, publicly accessible and verifiable at any time. This builds trust among users.

Notable platforms

Polymarket - The king of prediction markets

Launched in 2020 by Shane Coplan, Polymarket quickly became the best crypto prediction site in the industry. The platform operates on Ethereum and Polygon, allowing users to wager using USD Coin (USDC).

What makes Polymarket stand out is its enormous trading volume. In June 2024, volume surged from $100 million to $380 million, mainly driven by interest in the U.S. presidential election. This election was the largest market ever on the platform, with over $505 million in bets placed.

Polymarket uses liquidity pools to maintain fair, real-time prices. Its user-friendly interface makes it a popular choice for both newcomers and seasoned traders.

Hedgehog Markets - Unique combination

Founded in 2021 by George Yu (former Google engineer), Hedgehog Markets operates on Solana—known for its fast speed and low fees.

Hedgehog’s unique feature is “no-loss markets”—a concept combining prediction with DeFi. Users place bets without risking their initial capital, as their funds generate profits through DeFi protocols while the market remains open. It’s a smart way to reduce risk.

Projection Finance - New but promising

Launched in 2023, Projection Finance operates on Ethereum and integrates advanced DeFi features. The platform uses liquidity pools and staking mechanisms to encourage user participation.

Highlights include a user-friendly interface combined with robust security measures, making it an attractive choice for both beginners and experienced users.

SanR.app - On-chain analysis (On-chain)

Developed by Santiment team, SanR.app (launched in 2021) specializes in on-chain data analysis and social signals. The platform allows users to earn money by sharing accurate analytical signals.

It’s a great place for traders and data professionals to spot market trends earlier than the crowd.

PlotX - “Uniswap of prediction”

Launched in October 2020, PlotX is known for using Automated Market Making (AMM). This protocol enables predictions on crypto pairs like BTC/ETH over 1-hour, 1-day, or 1-week intervals.

With over 200,000 users, PlotX operates fully decentralized. Token PLOT holders can vote on key platform decisions. Integration with Polygon reduces transaction fees, providing a smoother experience.

( DexWin - Focused on sports

Launched in 2022, DexWin focuses on sports betting on Ethereum and Polygon blockchains. Its advantages include gas-free transactions and a platform promising the highest global odds.

DexWin supports NBA, NCAA, and plans to expand into football, tennis. Besides sports betting, the platform offers decentralized casino games like dice, coin flip, and slot machines.

) Oriole Insights - Market psychology analysis

Launched early 2024, Oriole Insights operates on Polygon and focuses on improving market psychology analysis. The platform offers simple UP/DOWN markets and ROI predictions, allowing users to forecast initial token prices.

Its reputation system recognizes accurate predictions. Oriole plans to become fully decentralized by introducing smart contracts.

Drift Protocol - Coming soon

Founded in 2021, Drift Protocol is currently a perpetual DEX on Solana with 195,000 users and a trading volume of $34.5 billion. The platform is set to launch prediction market features in mid-August 2024.

Drift promises an efficient experience thanks to Solana’s high-speed infrastructure. “The Election Center” will be a special section for trading predictions related to the U.S. presidential election, along with PolitFi memecoins like TREMP and KAMA.

The vital role of blockchain oracles

Blockchain oracles are middleware ###middleware### that connect the outside world with smart contracts. They collect real-world data—weather, sports results, election outcomes—and feed it into the system.

To ensure reliability, oracles often use multiple data sources and consensus mechanisms to validate information. Some also reward accurate data providers and penalize dishonest ones.

By utilizing a network of decentralized nodes, oracles help eliminate single points of failure, ensuring the system operates securely and reliably.

Challenges to overcome

Scalability: Current blockchain networks still face difficulties handling high transaction volumes. Layer-2 solutions and rollups are being developed to address this, but widespread deployment is still a work in progress.

Legal framework: Legal uncertainty is a major obstacle. In many jurisdictions, prediction markets may be considered gambling, leading to legal issues. Clear legal frameworks are needed for sustainable development.

Seamless integration: Combining prediction markets with other DeFi applications offers opportunities but also requires advanced technical solutions.

Future prospects

Decentralized prediction markets are in a rapid growth phase. As blockchain technology advances and legal frameworks mature, these platforms will become more efficient. Better scaling solutions will help reduce fees and increase speed. Deeper integration with DeFi will create innovative financial products never seen before.

The main strength of the best crypto prediction site lies in harnessing collective intelligence. When people worldwide place bets, aggregated data tends to be more accurate than traditional forecasting methods. This opens new opportunities for analysis, prediction, and decision-making.

However, risks should not be overlooked. Market volatility, potential legal issues, and oracle data accuracy can all impact outcomes. Always conduct thorough research before participating in any decentralized prediction market.

Frequently asked questions

How do these platforms make money?
They charge fees on each transaction, usually around 1% to 2% of net profits from winning positions. This structure sustains the platform financially and encourages high trading volume.

Are they legal?
Yes, but it depends on your jurisdiction. In some places, they may be considered gambling.

Can I profit from them?
Yes, but losses are also possible. Results depend on the accuracy of your predictions.

What are the transaction fees?
Varies by platform. Polymarket and Augur typically charge about 1.5% to 2%. Platforms on Solana or Polygon have lower fees due to lower network costs.

Are they safe?
Decentralized markets use smart contracts to ensure fairness. However, choose platforms that have been audited for security and understand the market risks.