Vitalik Buterin is sharing his ideas about new ways to use cryptocurrency, especially in prediction markets. This comes after the rise of the betting site Polymarket.
In a recent blog post, Buterin describes prediction markets as part of a bigger concept he calls “info finance.”
He explains, “Info finance is where you start with a fact you want to know. Then, you design a market to get that information from people.”
This approach can apply to many areas, including social media, science, news, and governance. Buterin points out that there are already some exciting projects in the works. These include advertising, personal tokens, peer review for science, and funding for public goods.
Buterin believes that this decade is a unique time for info finance, and here’s why:
- Trust Issues: Many people struggle with knowing whom to trust in politics, science, and business. Info finance can help with this.
- Scalable Blockchains: We now have the technology to support these ideas without high fees that used to hold them back.
- AI Participation: Relying only on humans can be tough. AIs can step in to make markets work better, even for smaller questions.
Many markets will likely have a mix of AI and human participants, especially when interest in specific questions grows.
To really make the most of this opportunity, Buterin suggests we should look beyond just predicting elections. There’s so much more that info finance can offer.