Coinbase-Backed Vega Gets Into Prediction-Market Race, Chasing Polymarket

Polymarket offers a platform where users can place wagers on a wide range of topics, including sports and scientific matters. While it’s not allowed to bet on U.S. election results domestically, international predictions made through Polymarket have been recognized as valuable insights in Washington discussions about the 2024 U.S. presidential race, often being mentioned alongside traditional polls.

Now, the Vega network, supported by Coinbase Ventures, is entering the competitive arena with an upgrade centered around betting. Vega, which operates as a blockchain and decentralized exchange (DEX) built upon Cosmos network infrastructure, is among several crypto platforms concentrating on perpetual futures – a mechanism for predicting future asset values.

In a recent upgrade, Vega has broadened its Decentralized Exchange (DEX) application to incorporate prediction market functionality. Now, users are able to place wagers on the results of upcoming events, similar to how they predict future token prices.

To start, Vega’s prediction market will vary from Polymarket’s primarily because it will function more as an open platform rather than a complete betting application. Throughout its development, Vega will maintain a resemblance to a traditional decentralized cryptocurrency exchange. Users will be capable of trading assets in the usual manner; however, some of these assets will now serve as proxies for prediction bets.

As a researcher, I’d like to highlight a distinct platform I’ve come across – Polymarket. Unlike others, it’s a unique app established within the Polygon blockchain ecosystem. For traders, it offers an engaging, casino-like interface reminiscent of platforms such as Draft Kings or other online betting sites.

Barney Mannerings, founder of Vega, explained that we’re in the process of creating the protocol, establishing the essential components, and making it possible for others to construct upon Vega. This allows those building on Vega and launching markets to essentially create their own products, offering unique user experiences (UX), and even incorporating elements like sports, news, or other content.

Despite some criticism towards bet-on-anything applications, Vega’s update highlights growing excitement about prediction markets as a promising application of blockchain technology that could lead to a significant breakthrough.

Mannerings commented, “It won’t shock me, particularly if prediction markets become popular, if more decentralized exchanges (DEXs) that offer perpetuals or futures start implementing similar practices. To me, it simply feels logical.”