Verification Protocol
Learn how Hyperthesis ensures accurate, decentralized resolution of prediction markets through a cryptographically secure verification system.
Types of Market Outcomes
Outcomes that can be resolved automatically through trusted data sources.
Examples:
- Sports scores from official APIs
- Election results from government sources
- Stock prices at market close
Clear outcomes that require human verification of evidence.
Examples:
- "How many times was 'AI' mentioned in the keynote?"
- "Did the CEO wear a blue tie?"
- "Was the product announced before noon?"
Outcomes requiring judgment or interpretation of ambiguous criteria.
Examples:
- "Was the speech tone aggressive?"
- "Did the market react positively?"
- "Was the event well-received?"
How Verification Works
Stake to Verify
Token holders stake tokens to become eligible verifiers. Higher stakes increase selection probability and rewards.
Committee Selection
When resolution is needed, a random committee is selected from staked verifiers, weighted by stake size.
Evidence Submission
Users submit claims with supporting evidence (transcripts, images, links). Quality evidence earns rewards.
Review & Vote
Verifiers independently review evidence and cast votes. Supermajority (e.g., 75%) required for resolution.
Rewards & Slashing
Honest verifiers earn rewards. Dishonest or lazy verifiers lose staked tokens. Truth is incentivized.
Economic Incentives
- Share of market fees proportional to bet size
- Accuracy multipliers for consistent truth
- Evidence submission bonuses
- Voting against overwhelming evidence
- Failing to participate when selected
- Coordinated dishonest behavior
Security Features
Random Selection
Verifiable random functions ensure committee selection cannot be gamed
Commit-Reveal Voting
Prevents verifiers from copying others' votes or being influenced
Time-Locked Stakes
Stakes locked during verification prevent hit-and-run attacks
Appeal Mechanism
Disputed resolutions can trigger expanded committee review