What happened?
Chainlink, a prominent figure in the oracle market, has announced a significant partnership with Polymarket, the largest on-chain prediction market, to improve the accuracy and speed of market resolutions. This partnership reinforces Chainlink’s domination at 62% of the oracle sector. The deal signifies Chainlink’s expanding role as a vital infrastructure for decentralized finance.
Who does this affect?
This collaboration directly affects Polymarket users, as it will allow near-instant settlement of prediction markets, starting with asset-pricing markets like Bitcoin and Ether. It also impacts the broader decentralized finance community, as Chainlink’s dominance in the oracle sector grows. The future collaborations between Chainlink and Polymarket will affect markets beyond asset-pricing, moving into more subjective prediction categories.
Why does this matter?
The importance of this partnership lies in its potential market impact. By teaming up, Chainlink and Polymarket can streamline and secure resolution processes, reducing reliance on subjective voting systems and minimizing resolution risks in more complex market types. It’s a significant milestone that transforms prediction markets into trusted indicators worldwide, given the tamper-proof computation and high-quality data involved.