How do platforms settle complex bets? Dive into the technical landscape of market resolution protocols 🧵👇

Prediction markets require robust settlement & dispute resolution protocols. Let's examine 3 primary architectures…

1. Centralized Resolution

- A single trusted entity (often the platform) determines outcomes

- Pros: Low latency, high throughput

- Cons: Single point of failure, potential for censorship

___________________

2. Oracle-Based Resolution

- Decentralized networks of data providers report real-world data on-chain

- E.g., UMA's Optimistic Oracle: Utilizes optimistic verification + decentralized dispute resolution

- Pros: Scalable, resistant to manipulation

___________________

3. Hybrid Models

- Combine multiple resolution methods

- E.g., Centralized feed with decentralized arbitration fallback

- Pros: Balances efficiency and trustlessness

___________________

Each architecture presents unique trade-offs in security, speed, and decentralization. The optimal choice depends on specific use cases and risk tolerance. Which resolution model do you prefer? 🔮