TruthCoin
TruthCoin, now known as Hivemind, is a project that aims to create a decentralized prediction market. The project's website can be found at . In the Hivemind system, participants are incentivized to vote in a way that aligns with the majority. If a participant fails to vote or votes against the majority, they will face a penalty and lose their coins. On the other hand, if they vote for the majority or the final outcome, they will be rewarded with coins. This mechanism is designed to encourage active participation and accurate voting.
One assumption underlying this system is that the usefulness of the market will lead people to vote in a "fair" manner in the long run. While this assumption may seem naive, it could still work. There is a strong motivation to vote for the side that one believes will ultimately win, and it is not unreasonable to assume that this side has a higher chance of being true, especially if the questions are well-designed.
Compared to Intrade, Hivemind eliminates several risks and limitations. Intrade had counterparty risk, did not offer any return on deposits, had non-obvious fees, restricted who could contribute money, and limited the types of markets that could be created. Hivemind addresses these issues by removing risks #1, #4, and #5, significantly reducing risk #3, and offering a version of risk #2 that can be improved as the volume increases. Hivemind is also related to the concept of Schelling Coin. Similar to how the blockchain relies on trusting which transactions were made first, Schelling Coin relies on trusting certain information, such as which option was chosen by the majority. This trust is established through an ID system. Overall, Hivemind is an innovative project that aims to create a decentralized prediction market with incentives for accurate voting and reduced risks compared to previous platforms like Intrade. It also incorporates concepts from Schelling Coin to establish trust in the system.