Chainlink's Data Streams are crucial for the functionality of 5-minute prediction markets, such as those on Polymarket, which operate like trading terminals. These markets allow users to bet on outcomes like Bitcoin's price exceeding $70,000 within a short timeframe, with trades opening, settling, and paying out winners in just five minutes.
The challenge in such fast-paced markets is ensuring accurate and tamper-resistant price data. Chainlink addresses this by aggregating prices from multiple top exchanges, preventing any single exchange from skewing results. This system updates prices at high frequency, ensuring all participants receive the same standardized data simultaneously, thus eliminating potential exploits from manipulated price prints or latency issues.
Chainlink's infrastructure is essential for these markets, providing a reliable settlement price that is crucial for instant payouts without disputes. This makes Chainlink not just a partner but a necessary component for the existence of 5-minute prediction markets.
Chainlink Powers 5-Minute Prediction Markets with Reliable Data
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