Buterin's "Info Finance" Concept Aims To Evolve Ethereum Prediction Markets Beyond Betting

Ethereum co-founder Vitalik Buterin just shared a new concept called "Info finance", which extends beyond traditional predictions markets by merging information with finance on blockchain.

In his recent blog post "From Prediction Markets to Info Finance," Buterin explores how blockchain technology could help aggregate, organize and distribute insights more effectively.

According to Buterin, Info Finance is a discipline where you start from a fact you want to know, and then deliberately design a market to optimally elicit that information from market participants.

Predictive markets as a data source

Buterin drew his inspiration from the predictive market like polymarket which accurately predicted the victory of the 2024 Presidential election.

But Buterin believes that predicting the election is just the first step, emphasizing the extent to which prediction markets could provide the public with valuable insights into public expectation without the interference of the media or sensationalism.

This areas could extend to several key sectors, including governance, social media, scientific research and decision-making processes.

Buterin summarized info finance as a three-sided market:

"Better makes predictions, readers read predictions. The market outputs predictions about the future as a public good (because that's what it was designed to do)."

Leveraging blockchain and AI to create a secure and accessible tool for everyone

Buterin's concept of info finance also leverages blockchain technology and AI to foster transparent information sharing and reward participants for accurate predictions.

He believed that by tapping on blockchain scalability and low transaction fees, info financing could be made widely accessible to everyone.

The Ethereum co-founder also sees this approach as the answer to solving the trust issues in the industry.

With the integration of AI, Buterin suggested that even if subsidies are required, the size of subsidy per question becomes extremely affordable.

"AI changes that equation completely, and means that we could potentially get reasonably high-quality info elicited even on market with $10 of volume." Buterin said.

ETH Breaks $3,000

Buterin's new vision arrives in tandem with the Ether prices surging above $3000 over the last seven days after Donald Trump won the United States presidential election.

The ETH price has increased by 21.67%, breaking the overhead resistance faced of $2,800 and exceeding the $3,000 price level for the first time since March.

Venture capitalism Hentique Centiero stated on Nov.8 that the supply crunch and rising demand for ETC could trigger a rally for the asset as it enters "scarcity mode."