AI Judges: Unlocking the Expansion of Prediction Markets

The Bottleneck of Prediction Markets and AI Solutions

Prediction markets have long struggled with accurately determining the outcomes of future events. This issue not only affects market fairness but also impacts liquidity and the reliability of price signals.

Advantages of AI Judgment Mechanisms

Introducing AI, particularly large language models (LLMs), as judges can effectively address trust issues. By recording rules and decisions on the blockchain, the process becomes transparent and resistant to manipulation, enhancing overall fairness and neutrality.

Technical Implementation

• Record LLM models and decision prompts encrypted on the blockchain when creating contracts.
• Fix model weights to prevent tampering and reduce cheating risks.
• Make settlement mechanisms publicly auditable to eliminate arbitrary human decisions.

Future Outlook

AI judgment mechanisms can significantly improve the efficiency of prediction markets and enable scalable expansion, providing participants with a more reliable and transparent trading environment.