What is a prediction market

A prediction market lets people trade on the outcome of a real event instead of trading a company's stock or a currency. "Will this happen yes or no?" becomes something you can buy and sell a position on, and the price moves as new information arrives.

The core mechanic

Each question resolves to one of two outcomes: YES or NO. Contracts tied to each side trade at a price that reflects the market's collective view of the probability a YES contract trading near the top of its range implies the market thinks that outcome is likely.

Why this is useful

• Prices aggregate information faster than most single sources
• Markets exist on things far beyond finance sports, politics, culture, product launches
• You can express a view on almost anything with a clear yes/no resolution

Where World fits

World applies this model on Solana, self-custodially: your wallet, not a company account, holds your position. See YES vs NO for how a single trade actually works.