We are thrilled to announce Polkamarkets’ partnership with Kylin Network to provide decentralized and validated data via oracles to our prediction markets. This partnership will help to ensure the quality and reliability of data sourcing for markets, disputes and resolution on Polkamarkets.
One of the key use cases for on-chain oracles is to provide the critical data needed to resolve markets. Prediction markets, like financial markets, need to be furnished with external data points in order to provide accurate and real time information to traders. In the decentralized world, the challenge of getting off-chain data on-chain is a significant one. Most off-chain data sources are provided via a trusted 3rd party API. As trusted as this setup could be, it still is a single-source of data that is centralised, and hence subject to possible tampering, collusion, and corruption of data. From a decentralisation perspective it also makes more sense for a Dapp to use data from decentralised sources.
One of the reasons why Polkamarkets chose Kylin Network as an oracle partner is their validation layer. The model that Kylin uses is the “skin in the game” model where data miners must place a financial stake to act as collateral against the validity of the data they provide. If miners are correct in their data, then they get rewarded with more reputation; if miners provide false information their collateral gets slashed.
The prediction markets on Polkamarkets require high-quality and low latency data from the off-chain world. Markets such as our daily crypto price markets will require real time price feeds. Esports markets with live, in-play trading of outcome shares will also require similarly real-time information. We are working closely with Kylin in order to build an on-chain system that allows their oracle to serve our data needs.
Decentralised Oracle Systems
In this diagram, Polkamarkets would be the Data Requester and consumer of the data. Our systems would send a data request to the Kylin Data Warehouse to pull and verify data from off-chain data sources via oracle nodes. These data providers include off-chain crypto price feeds, news aggregators, and Esports/sports data providers.
Then, a network of arbitration nodes would validate the data prior to passing it back to the Data Warehouse, to then be fed into the prediction markets for real time price updates and event resolution. In the case of a dispute, the Arbitration Nodes would step in and revalidate the data to discover the anomaly.
Building on Polkadot
Polkamarkets and Kylin Network are both committed to building on the Polkadot Ecosystem to bring value and user traction to the network. We view this partnership as a great opportunity to showcase the power and scalability of Substrate and specialised parachains in order to achieve a wide variety of use-cases.
“We are excited to be exploring the world of decentralized oracle systems with Kylin Network. Our goal is to create a fully on-chain prediction market that balances scalability with decentralization. Having a partner like Kylin Network for our data needs helps us to achieve that vision. We look forward to working together on bringing high quality off-chain data on-chain for markets such as Esports and daily crypto price markets. Polkamarkets is an entertainment DeFi platform offering a gamified prediction market. Data is a key resource and we are happy to be working with our partners to make it a reality.” — Ricardo Marques, Polkamarkets CEO.
“We are today seeing the next logical step of blockchain applications past DeFi — Polkamarkets will revolutionize the landscape when it comes to prediction markets. These prediction markets need access to a basic, trustless, and decentralized validation layer with both high-throughput and cost-effectiveness. We are super-pleased to be able to work hand-in-hand with Polkamarkets to achieve our shared fundamental, mutual and synergetic mission, which is to extend the borders of blockchain to achieve new things.
Polkamarkets represents an important and major component of a DeData world, which is operationalizing and monetizing data functionalities in the realm of forecasting, esports, and prediction markets.” — Dylan Dewdney, Kylin Network CEO.
About Kylin Network
Kylin Network aims to build a cross-chain platform powering the data economy on Polkadot. It will be the data infrastructure for the future DeFi and Web 3.0 powered by Polkadot. Kylin Network aims to provide valid, reliable, secure, cost-effective, and easily-coordinated data sources and data analytics. It is the Kylin team’s bold vision that we have the capacity and potential to build the infrastructural data validation layer of Polkadot and by virtue, potentially the entire cross-chain blockchain universe!
Polkamarkets is a DeFi-Powered Prediction Market built for cross-chain information exchange and trading where users take positions on outcomes of real world events–in a decentralized and interoperable platform based on Polkadot.