PolyCash allows anyone to create secure betting applications on the blockchain. Many projects have launched which incorporate aspects of blockchain & cryptocurrencies with betting. But most of these projects maintain a traditional business model in which the house earns money by charging fees on each bet.
PolyCash prediction markets are designed with no house, no fees and are maximally decentralized. Most blockchain projects rely on a single blockchain or issue a single token. But PolyCash is a multi-currency and multi-blockchain program. PolyCash is compatible with Bitcoin, Litecoin and any other blockchain based on the original Bitcoin code.
PolyCash Lets Builders Create Coins Easily
This project was designed to reduce the barrier to entry for creating a new cryptocurrency to zero. PolyCash allows anyone to create a new currency with industry leading functionality without writing code. PolyCash is an implementation of the colored coins concept and each PolyCash protocol currency is launched on a blockchain such as Bitcoin and uses trace amounts of the underlying blockchain asset.
PolyCash has launched several testnet currencies which have proven the security and functionality of this software, but which have no value. PolyCash is designed for currencies which are backed by other sources of value. Coins can be pegged to assets like BTC or dollars by holding escrowed funds in a multi-sig crypto address or a traditional bank account. Funds can then be redeemed from escrow by destroying coins.
This functionality protects investors and allows pegged currencies to be wound down and even terminated without defrauding coin holders. Payment methods are distinct from the assets backing each currency. For dollar backed currencies you can buy still buy in with BTC, ETH and others, place your bets and then cash out any time via those same channels.
Reliably determining the outcomes of real-world events is a hard problem for decentralized systems. Projects like Augur and Gnosis approach the oracle problem by asking users to vote on the correct outcome and by penalizing users who vote against the consensus. Low user participation has been a challenge for these platforms. PolyCash takes a more practical and more decentralized approached by making event resolution the responsibility of each node operator. Node operators effectively fork the currency each time they resolve an event out of consensus. Node operators who allow users to cash out to networks like BTC must be especially careful to always remain in consensus or risk losing money or defrauding users. PolyCash nodes maintain a list of peers and should regularly check with their peers and disable cash-outs whenever a fork occurs, until the fork can be resolved.
PolyCash Investment Opportunities
We are looking for investors and strategic partners who can help us launch our first value-backed betting currencies. If you’re interested in starting a sports betting hedge fund, we could use your help. Although there’s no house which can charge fees, betting markets can be configured to give higher payouts to early bettors, giving high volume bettors a way to earn a profit from late bettors even when they only bet as well as average.