Enter The World of Prediction Markets With Stox

A prediction market is an online exchange where individuals or group of individuals can get into trading by asking questions and predicting the outcome of future events. As a matter of fact, a prediction market is quite similar to a stock exchange apart from the fact that it involves trading of securities while in Prediction Market, trading happens mainly on the event outcomes. In stock market, a price is assigned to the estimated earnings of a stock. On contrary to this, the prediction market works by assigning a price to the probable outcome of an event. People can buy and sell shares in form of contracts that indicate the potential outcome of a future event. All the prediction markets including Stox rely on a single principle called Wisdom of the Crowd which indicates that a collective opinion by a group of individuals is always far more accurate than that of a single expert.

Although there are plenty of prediction markets all over the world, most of these are centralized with a single party governing the entire network. However, the emergence of DAPP platforms like Ethereum have brought an immediate change in picture. Augur, Gnosis and Stox are some examples of decentralized prediction markets that we have today.

Also read A Blockchain Platform Stox Raises 30 Mln USD In The ICO.

What Is Stox?

Stox is an emerging platform for prediction markets powered by Ethereum blockchain. Stox allows its users to predict the outcome of various events in all sorts of categories including sports matches, movie verdict, election update, celebrity marriages and even the weather reports. It’s an open source platform built on top of the Ethereum blockchain. The platform targets mainstream audiences and allows people to trade on the outcome of the forthcoming events.

How It Works?

Stox is a spin-off of invest.com, an online financial company operating since 2014. With over 3 million registered users, the company is currently operational in 5 countries. The main objective of Stox project is to build a decentralized prediction market for the mainstream audiences where they can trade on the event outcomes. Stox offers two-way benefits to its users. The providers create events and they get compensated for operating them. Others can trade on these events by predicting their outcome. Those who make accurate predictions are rewarded in “STX, a digital token that backs the Stox platform.” The STX token is used for all the financial transactions and activities happening in the Stox network.

Who Can Use It and How?

Once it goes mainstream, Stox will be open to everyone which means anyone can set a prediction and trade on the outcome. However, invest.com will be the first operator to join the network and by the second quarter of 2018, it will be open to everyone so that others may pool in and start trading using STX tokens.