This week, Jorrin Bruns (Support Engineer, Parity Technologies) is joined by Zeitgeist’s founder Logan Saether, and CIO, David Perry. Zeitgeist is a Substrate-based decentralized network for creating, participating in, and resolving prediction markets, and exploring the potential of futarchy for governance.

They discuss prediction market systems, futarchy for decision making, mitigating market biases, how a prediction market works, and its diverse applications — from improving on-chain governance to choosing political candidates and predicting parachain slot auction winners.

The team also describes the next steps for this project in terms of usability and adoption, such as parachains leveraging futarcy, developing an SDK to speed up prediction market app deployment, and their plans for Zeitgeist to become a Kusama parachain.

Links

Zeitgeist’s website

The Wisdom of Crowds, James Surowiecki

Keynesian beauty contest

Futarchy

Kusama Derby Conclusion Results

Highlights

01:05 What is Zeitgeist

08:10 Prediction market systems

10:27 Futarchy for decision making

13:20 Zeitgeist Substrate pallet recipe

18:00 Automated Market Makers

20:15 How a prediction market works

26:14 Prediction market efficiency given subjective information

27.58 Mitigating prediction market biases and incentives

30:02 Prediction markets within politics

34:15 Types of prediction markets

38:20 Building an SDK

41:20 Zeitgeist plans as a parachain

Special Guests: David Perry and Logan Saether.