Polymarket, the World's Largest Prediction Market, Announces Collaboration with This Altcoin! Here are the Details

EigenLayer, Polymarket and UMA, are collaborating to develop a next-generation oracle system that aims to improve blockchain-based data verification by leveraging EigenLayer's infrastructure and EIGEN token.

EigenLayer, Polymarket, and UMA Join Forces to Develop Next-Generation Oracle

EigenLayer, a protocol that allows users to reacquire ETH and liquid staking tokens to secure additional services, will provide a security framework for the new oracle.

The restaking mechanism may help Ethereum stakers to ensure the security of the Oracle and enhance the reliability of Ethereum with economic support.

EigenLayer said, 'We are collaborating with the UMA protocol and Polymarket to explore a new generation oracle that utilizes interlocking security enabled uniquely by EigenLayer and EIGEN token.'

It is expected that Oracle will work on the “inter-subjective truth”, meaning truths are determined not by completely objective data like mathematical proofs but by community consensus.

This model is closely aligned with prediction markets, where the resolution of disputes is generally assumed to be based on widely accepted interpretations of real-world events.

Development of Oracles for Prediction Markets

Prediction markets like Polymarket rely on oracles to resolve bets based on real-world events. Currently, UMA's Optimistic Oracle empowers Polymarket, allowing a proposer to present an outcome, for example, “Candidate X won the election”.

Unless objected within a challenge window, the result is assumed to be correct. In case of objection, UMA's decentralized voting mechanism determines the final decision.

This system has been effective, and more than 10,000 Polymarket markets have been resolved using UMA's oracle. However, occasional disputes have raised concerns about accuracy and prompted Polymarket to explore advanced oracle solutions.