Ethereum co-founder Vitalik Buterin has introduced “Information Finance,” a new concept that aims to transform the way information is captured, validated and shared across multiple digital sectors.
According to his latest blog post titled “From Prediction Markets to Information Finance,” Vitalik Buterin explores how Blockchain technology could help aggregate, organize and distribute information much “more effectively.”
“Information finance is a discipline in which you start from a fact that you want to know and then deliberately design a market to optimally obtain that information from market participants.” Buterin expressed.
Fundamentals of the proposed prediction markets. Source: Vitalik Buterin
Notably, Buterin defends prediction markets as a secure source of data and as a way to gather information about future events. In addition, Buterin also highlighted platforms such as “Polymarket”, where users bet on results to generate information based on data.
However, Buterin noted that “predicting elections is only the first application,” emphasizing the extent to which prediction markets could provide the public with valuable information about public expectations without media influence or sensationalism.
Importantly, Buterin summarized “Information Finance” as a three-sided market in which bettors make predictions, readers read the predictions, and the market will produce predictions about the future as a public good.
On the other hand, Buterin expressed that he hopes that Artificial Intelligence (AI) technology will boost information finance in the next decade, whether in the form of “LLM” or some future technology.
Buterin’s vision and Trump’s victory boost Ethereum
Notably, Buterin’s Information Finance concept focuses on the use of Blockchain and artificial intelligence to encourage the transparent exchange of information and reward participants for their accurate predictions.
Additionally, Buterin believes that the scalability of Blockchain technology and low transaction fees could make Information Finance tools widely accessible to Web3 users. Because of this, the co-founder of Ethereum sees this new approach as the answer to solving trust problems in all digital sectors.
Likewise, with the integration of AI, Buterin suggested that even if subsidies were required, the size of the subsidy per question would become extremely affordable.
“AI changes that equation completely and means we could potentially get reasonably high quality insights even in $10 volume markets.” Buterin expressed.
On the other hand, Vitalik Buterin’s new vision for “Information Finance” and prediction markets comes along with Ethereum trading above $3,000 in the last seven days. This after Donald Trump won the recent United States presidential election.
At the time of writing this post, Ethereum (ETH) is trading at $3,141, accumulating monthly gains of 30.49%. Source: CoinMarketCap
It is important to note that the price of ETH has increased by 28.7% during this last week. This, after breaking the $2,800 resistance and surpassing the $3,000 level for the first time since March.
Additionally, according to a publication by venture capitalist, “Henrique Centieiro,” the shortage of supply and growing demand for ETH could trigger a rally in the crypto asset as it enters “scarcity mode.”
Do you want to always be updated in the world of cryptocurrencies? Subscribe now to the CriptoTendencia WhatsApp channel! Here you will instantly receive the most relevant information about Bitcoin, Altcoins, DeFi, NFTs, Blockchain and the Metaverse.
Related
Crypto Keynote USA
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
