The blockchain offers a much more reliable platform than a centralised database. Because it is very difficult (if not impossible) to change (tamper-proof).
The recent evolution of blockchain technology has given rise to several new prediction market applications based on Ethereum. These new technologies utilize digital currency to provide a decentralized, real-money prediction market.
But first we need to analyze 2 (two) types of prediction markets platform:
Centralized Platform
This is a standard type of prediction markets, it works the same as an exchange service. You send your cryptocurrency to the platform owner and market creators. They record your balance in their own database.
The updates to your prediction stats. (wins, losses, etc) are done centrally, by the platform owners. This is might be faster than a blockchain-based platform but there is a drawback, you have to trust the people who run the platform and the market creators.
Once you send cryptocurrency to the platform, you can only get it back if they give it to you. A withdrawal is actually a request for your own money.
We do hope these centralised operators have enough funds and don’t run away. You might get a faster database. But you risk losing your money. A centralised platform is not public. So you have to trust the site owners and hope they are not playing with your data and your money.
Decentralised Platform
With decentralized platform, there is no 3rd party, there is no trust involved. You always control your funds and your predictions. You send funds directly to the Smart Contract, on the Ethereum blockchain.
Stox is a Blockchain Prediction Markets Platform
The Smart Contract processes the predictions and returns the win directly to your wallet. The Smart Contract is a public and verified code, that lives on the very public Ethereum blockchain.
Stox.com aims to create the leading decentralized prediction market used by mainstream audiences by maintaining a thriving ecosystem of users looking to invest in event outcomes and providers looking to create events and be compensated for operating them. The main role of Stox is to develop the open source technology required for running the decentralized Stox platform and network and create a successful model incentivizing both users and providers to join the network.
As an an open source, Ethereum based platform for prediction markets where people can predict the outcome of events in almost any imaginable category, Stox targets mainstream audiences and provides a venue where users can enjoy predicting everyday events in real time, and potentially profit from the outcome.