Hodl Hodl Launches New Predictions Services

According to a recent report, Hodl Hodl which is a KYC-free virtual currency exchange has made it known that it will be adding a new service called “Predictions” to its list of services being rendered, as the exchange is of the belief that prediction markets are useful financial instruments within the crypto ecosystem. The service offers a reward to those that forecast the specific outcome of an event.

Hodl Hodl Doesn’t Require KYC

The exchange doesn’t require KYC verification and it uses a multi-signature escrow scheme which prevents it from theft and fraud. It does this by utilising a P2SH contract which allow traders to hold keys to fund in escrow which is a similar to that which the latest prediction markets feature will be using, which is to lock prediction contracts in a 2-out-of-3 multi-signature escrow.

Prediction tools are not new to the crypto ecosystem. They function as financial tools which offer their users the opportunity to create a contract with others and it gives incentives to Predictions which turns out as correct after the event has occurred. A typical example is the creation of a contract in anticipation of the outcome of the next U.S. presidential election or someone could try to forecast the price of a certain virtual currency in 2020. The Augur platform which relies on the wisdom of the crowd and it’s native currency REP is the leading crypto prediction market.

Hodl Hodl is Focused on BTC

As for the Hodl Hodl, its concept utilises BTC, and it’s developers claim their implementation can be termed as a peer-to-peer prediction market.

The developers explained that: “Because each party would lock funds in multi-signature 2-out-of-3 escrow, the oracle, in this case, is going to be sort of distributed: in a perfect case, both parties agree on the outcome, because neither party is able to return the coins locked in escrow unilaterally and, thus, they have nothing to win whatsoever by denying the outcome in favour of the other party,” “In fact, they risk losing their reputation on Hodl Hodl and future prospects for creating contracts.” they added.

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