Vitalik explores ‘data finance’ potential as ETH tops $3K
Ethereum founder Vitalik Buterin introduced a new concept called “information finance” that aims to change how information is captured, verified and shared across sectors.
In his recent blog post, “From Speculation Markets to Data Finance,” Buterin explores how blockchain technology can help collect, organize, and distribute insights.
According to Buterin, “Information finance is a discipline where you (i) start with the facts you want to know and then (ii) design markets deliberately to get that information better than market participants.”
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Forecast market as a source of data
Buterin supports prediction markets as a way to gather insights about future events. It highlights platforms like Polymarket, where users bet on outcomes to generate data-driven insights.
“Predicting the election is only the first application,” he explained, emphasizing the extent to which prediction markets can provide the public with valuable insight into public expectations without media influence or sensationalism.
Buterin summarizes information finance as a three-sided market:
“[…] Debtors make predictions, readers read predictions. The market produces predictions about the future as a public good (because it is designed to do so).
The fundamentals of the prediction market are in action. Source: Vitalik Buterin
Related: ‘Purge' – Vitalik's plan to reduce Ethereum bloat
Trustless through blockchain and AI
Buterin's data finance concept uses blockchain and artificial intelligence to encourage transparent data sharing and reward participants for accurate predictions. He believes blockchain scalability and low transaction fees will make data finance tools widely accessible.
Ethereum's founder sees this approach as the answer to solving the trust issues in the industry.
With the integration of AI, Buterin suggests that “even if subsidies are needed, the amount of subsidies for the request will be very proportional. AI will completely change that equation, and it will mean that we can get reasonably high-quality data even in markets with a volume of $10.”
Related: Saylor's comments on big bank's BTC protection are ‘batshit crazy' – Buterin
ETH breaks $3,000.
Buterin's vision for “information finance” and prediction markets have come together, with the price of Ether (ETH) rising more than $3,000 in the seven days since Donald Trump won the US presidential election.
A graph showing the rising price of ETH over seven days. Source: CoinMarketCap
The price of ETH increased by 21.67%, broke the profit barrier faced with $2,800 and exceeded the price level of $3,000 for the first time since March.
Venture capitalist Henrique Centeiro said on November 8 that supply congestion and increased demand for ETH could create a rally as the asset enters “scarcity mode.”
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