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Oracle / Resolution 1
Smart contracts cannot directly observe real-world outcomes; prediction markets need an external resolution mechanism; this is the core oracle problem.
Oracle / Resolution 2
Polymarket uses the UMA Optimistic Oracle; after the event someone proposes the market outcome; that proposal begins resolution.
Oracle / Resolution 3
The proposal requires a bond; it then enters a challenge period; if disputed the oracle process determines the final result.
Oracle / Resolution 4
If accepted the winning token becomes redeemable; the winning token pays $1 and the losing token pays $0; the oracle bridges real-world truth to on-chain settlement.
Custody / Non-Custodial 1
Polymarket is non-custodial; users control their own funds and positions; assets remain tied to the user's wallet.
Custody / Non-Custodial 2
Orders are signed locally with the user's key; signing an order is not the same as giving up custody; the operator cannot execute unauthorized trades.
Custody / Non-Custodial 3
Matching happens off-chain for speed; settlement happens on-chain through smart contracts; this keeps execution efficient but trust-minimized.
Custody / Non-Custodial 4
Centralized exchanges hold user funds internally; Polymarket coordinates trades without taking possession; blockchain controls the assets and enforces settlement.
dApp Design Lessons 1
Polymarket shows that hybrid architecture works; not every function needs to be on-chain; good dApps separate coordination from enforcement.
dApp Design Lessons 2
Decentralization is selective not absolute; blockchain adds most value in trust-sensitive areas; those areas include assets collateral custody and settlement.
dApp Design Lessons 3
Oracles are part of the core trust model; they are not just an optional add-on; real-world truth must be bridged on-chain for redemption.
dApp Design Lessons 4
Polymarket is more than a prediction website; blockchain is doing real application work here; it defines claims enforces rules and settles outcomes.