Prediction markets are platforms that allow users to bet on future events. Odds are usually dependent on the possibility of the event in question happening – lower odds (more likely an event happens) pay out less than higher odds (less likely an event happens), and it is easy to understand why this is the case. More participants end up betting on the more likely scenario, so if they are correct in their prediction, the prize pool is split across a larger number of participants, resulting in smaller payouts and vice versa.

Following our recent deep dive into the world of NFTfi, it only makes sense to discuss arguably the most exciting use case of it, tokenization. Real-world assets (RWAs) and financial assets can be tokenized and put on the blockchain. Tokenization is the process of representing a RWA on-chain with a token like an ERC-20 (fungible token on Ethereum) or an ERC-721 (non-fungible token on Ethereum). Tokenization encompasses virtually any real-world asset. These can be tangible assets like real estate, physical art and collectibles, and gold. They can also be intangible assets like stocks and treasury bonds.

Commerce has played a significant role throughout human history and has continually developed and evolved to reflect the changing needs and capabilities of society. The practice of trade, initially shaped by bartering, was the bedrock upon which early civilizations thrived. This ancient system involved the direct exchange of goods or services, dependent entirely on the relative needs or surpluses of individual parties. The intricacy of this system led to the emergence of a more efficient approach: currency.

The mainstream NFT boom is now a little over two and a half years old. NFT trading started off with a Shopify-esque experience where you click on something you like before clicking again to buy it. Over the last two years, with deteriorating market conditions and dwindling user counts, it has evolved into tools and charts that enable users to squeeze more and more value out of the market.