Polymarket operates on Polygon, a proof-of-stake layer two blockchain built on Ethereum. All transactions are denominated in USDC, a US-dollar pegged stablecoin.This architecture offers several advantages over traditional prediction markets:
Why USDC?
Stable Value
Polymarket denominates trades in USDC, which is pegged 1:1 to the US Dollar. This shields you from the volatility associated with other cryptocurrencies and offers a stable medium for trading.
Regulated Reserves
USDC operates in adherence to regulatory standards and is backed by reserved assets.
Transparency
Blockchain technology facilitates transparency, as all transactions are recorded publicly.
Global Reach
Research has shown that wide availability of prediction markets increases their accuracy. Using decentralized blockchain technology removes the need for a central authority in trading, which fosters fairness and open participation around the globe.