Prediction markets have been around for quite some time. These markets collect unbiased data from users in return for some rewards. The users need to buy the shares depending on the side they support. And this is all done under Gnosis. So what is gnosis?
Gnosis is a decentralized prediction market designed to set a global standard for prediction markets.
Understanding the Prediction Markets
The prediction markets are managed by centralized organizations that collect data from a huge number of participants to predict the results of an upcoming event. These markets usually collect data for political, social, and financial events.
A recent survey shows that prediction markets have proved to be very helpful in tracking and forecasting emerging epidemics. The prediction markets create a number of shares for upcoming events. The participants can buy the shares to give their opinion.
The organizations predict the results depending on the percentage of shares purchased by the users. If the user’s prediction is correct, he/she can redeem the share for $1 otherwise, they won’t get a refund. The prediction markets are different from betting and gambling because users make the prediction after analyzing a number of aspects.
What is Gnosis?
Gnosis is an Ethereum-based prediction market protocol where users can create different markets to predict the results of upcoming events. It’s pretty much similar to a cryptocurrency exchange because traders predict the price of an asset in the exchanges.
However, Gnosis allows them to predict upcoming events. The value of Gnosis tokens is affected by the outcomes of the events. Gnosis is dedicated to becoming a reliable forecasting tool that can show uncensored public opinion.
Governments, insurance companies, and financial experts can use this tool to collect reliable data without dealing with a third party. Gnosis is a unique tool that provides traditional blockchain users with an opportunity to trade international events.
Gnosis Safe – The users can create multi-signature wallets with Gnosis Safe. They can protect their assets with multi-factor authorization. Android and IOS users can easily obtain this service. The users can also download the chrome extension to connect t the most popular Defi protocols.
Gnosis DEX – Gnosis has also introduced a decentralized exchange called CowSwap. This protocol executes trades depending on the coincidence of wants. However, if a trade can’t be settled with other CowSwap traders, the network executes the trade with the automated market maker. Unlike other decentralized exchanges, Gnosis doesn’t use liquidity pools.
Gnosis Brief History
Stefan George and Marting Koeppelmann introduced the Gnosis project in 2015. It was initially launched under the umbrella of ConsenSyS, an Ethereum venture production studio. Gnosis team raised $12.5 million worth of ETH by selling 4 percent of the total supply during an initial coin offering in 2017.
It gained a lot of attention from the investors and the token sale ended within 15 minutes. Thus, the Gnosis became an independent project. The team launched a test version of its prediction marketplace known as Olympia.
The team launched the decentralized exchange, its prediction market platform, and its wallet in 2018. Gnosis has a team of 50 members dedicated to introducing new ideas to support different DeFi applications.
How Does Gnosis work?
As it’s mentioned, Gnosis has introduced three products for its users. These products are connected to each other through three different layers.
Core Layer – The core layer is the most important part of the network. It keeps a record of the events that have occurred over time. It also updates the latest information as soon as new events are announced. It also keeps a track of market mechanisms and outcome tokens.
Service Layer – The service layer is designed to build consensus among different applications. The applications can interact with each other if needed. It also supports additional features like stablecoins, payment processing, and chatbots. The trading fee model of the Gnosis network is also controlled by the service layer.
Application Layer – The developers can launch their prediction market decentralized applications on this layer. The developers can charge the users for services they’re offering. However, most decentralized apps are developed by Gnosis. And the fee structure of these apps is determined with the help of the service layer.
Gnosis network consists of two native tokens known as GNO and OWL. GNO is the primary token users need to stake to generate OWL tokens. The OWL tokens are pegged to the US Dollar. Thus, it consistently maintains its value over time.
The users can spend OWL tokens to buy different tokens from the prediction market. Although users can also use other ERC-20 tokens to perform these transactions, the gas fee is a bit high for those tokens.
Gnosis platform rewards the users when they pay fees using OWL tokens. Similarly, the protocol increases the OWL supply as a penalty when more users spend other tokens to pay Gnosis fees.
With a circulating supply of 2.57 million, GNO has a market cap of $370.9 million. It has a total supply of 10 million tokens. The network automatically burns GNO tokens to control inflation. It ranks among the 100 best cryptocurrencies in terms of market cap.
Gnosis is a decentralized prediction market protocol that allows users to predict the results of different events to earn rewards. The network also uses this data to predict the results of upcoming events. The developers can build applications on this platform for different industries.
It offers three different products to smoothly run the operations. If you need more information about how Gnosis works, feel free to get in touch with us.