Bitcion and Prediction Markets

Bitcoin research is becoming more and more usefull as a research team led by Princeton faculty is designing a prediction market — in which parties predict the likelihood of future events — underpinned by Bitcoin transactions.

Prediction markets function like stock markets, with participants trading shares. These shares have payoffs that are tied to the outcome of real-world events. For instance, a share may pay out $1 if a particular candidate wins the next presidential election.

Link:  DailyPrincetonian.com