🧵 Educational AF: Polymarket’s Oracle Magic
Ever wondered who decides the winner when a market ends?
1/
I was curious how @Polymarket decides who actually wins a bet
Didn’t make sense to me at first cause there’s no "judge"
Turns out they use something else: UMA’s Optimistic Oracle
Let me explain so you don't waste your time researching👇
2/
It’s basically how the blockchain gets info from the real world:
"Who won an election"
"Did BTC hit 100k"
Smart contracts can’t see that, so the oracle tells them.
4/
If someone does disagree, they can dispute it
That starts a vote among UMA token holders
Everyone who votes has money at stake
Vote right → earn rewards
Vote wrong → lose tokens
So being honest pays off big time here
That’s why Polymarket doesn’t need moderators
The system works on incentives
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