Paper: arXiv 2510.15612
Authors: Nahid Rahman, Joseph Al-Chami, Jeremy Clark
Abstract
Decentralized prediction markets (DePMs) allow open participation in event-based wagering without fully relying on centralized intermediaries. We review the history of DePMs which date back to 2011 and includes hundreds of proposals. Perhaps surprising, modern DePMs like Polymarket deviate materially from earlier designs like Truthcoin and Augur v1. We use our review to present a modular workflow comprising seven stages: underlying infrastructure, market topic, share structure and pricing, trading, market resolution, settlement, and archiving. For each module, we enumerate the design variants, analyzing trade-offs around decentralization, expressiveness, and manipulation resistance. We also identify open problems for researchers interested in this ecosystem.
Complexity vs Empirical Score
- Math Complexity: 6.5/10
- Empirical Rigor: 3.0/10
- Quadrant: Lab Rats — theoretically deep, empirically untested
Why this score: The paper introduces formal axiomatic definitions and taxonomy using mathematical notation, but it is primarily a survey and classification of existing designs rather than proposing new algorithms with empirical backtesting or data analysis.
Research Flowchart
flowchart TD A["Research Goal<br>Systematize DePM Market<br>Microstructure & Identify Trends"] --> B["Methodology<br>Historical Survey &<br>Modular Framework Design"] B --> C["Data Inputs<br>2011-2024 Proposal Review<br>Truthcoin, Augur v1, Polymarket"] C --> D["Computational Process<br>7-Stage Modular Analysis:<br>Infrastructure, Market, Trade, Resolution"] D --> E["Key Finding 1<br>Modern DePMs decouple<br>market resolution from trading"] D --> F["Key Finding 2<br>Trade-off exists between<br>decentralization & manipulation resistance"] D --> G["Key Finding 3<br>Open Problem:<br>Scalable dispute resolution<br>mechanisms"]
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- Improving and Simplifying a Variant of Pret a Voter (2009)
- A Game-based Definition of Coercion- Resistance and its Application (2010)
- Accountability: Definition and Relationship to Verifiability (2010)
- Proving Coercion-Resistance of Scantegrity II (2010)
- Verifiable Internet Voting Solving Secure Platform Problem (2007)
- Receipt-free electronic voting scheme with a tamper-resistant randomizer (2002)
- Receipt-free electronic voting through collaboration of voter and honest verifier (2000)
- Providing receipt-freeness in mixnet-based voting protocols (2003)
- On the CCA1 -security of E lgamal and D amg\r a rd’s E lgamal (2010)
- Pseudonym Systems (1999)
- Receipt-freeness in large- scale elections without untappable channels (2001)
- E-voting without `cryptography’ (2002)
- Simulation-based analysis of E2E voting systems (2007)
- A Coercion-Resistant Internet Voting Protocol (2007)
- Some remarks on a receipt-free and universally verifiable mix-type voting scheme (1996)
- Split-Ballot Voting: Everlasting Privacy With Distributed Trust (2007)
- Receipt-Free Universally-Verifiable Voting With Everlasting Privacy (2006)
- David and Goliath Commitments: UC Computation for Asymmetric Parties Using Tamper-Proof Hardware (2008)
- Civitas: Toward a Secure Voting System (2008)
- Visual Cryptography (94)
- Bit commitment using pseudo-randomness (extended abstract) (1989)
- A Verifiable Secret Shuffle and its Application to E-Voting (2001)
- How to prevent buying of votes in computer elections (1994)
- An Improvement on a Practical Secret Voting Scheme (1999)
- Provably secure and practical indentification schemes and corresponding signature schemes (1992)
- An Electronic Voting Scheme (1996)
- Receipt-free electronic voting schemes for large scale elections (1997)
- CAPTCHA-based Code Voting (2008)
- Public-key cryptosystems based on composite degree residuosity classes (1999)
- Efficient anonymous channel and all/nothing election scheme (1993)
- Non-Interactive and Information-Theoretic Secure Verifiable Secret Sharing (1992)
- A threshold cryptosystem without a trusted party (1991)
- Multiplicative homomorphic e-voting (2004)
- Breaking an efficient anonymous channel (1994)
- SpeakUp: remote unsupervised voting (2010)
- An introduction to punchscan (2006)
- Rerandomizable RCCA Encryption (2007)
- A virtual honeypot framework (2004)
- On the security of election audits with low entropy randomness (2009)
- Bare-Handed Electronic Voting with Pre-processing (2007)
- Three voting protocols: threeBallot, VAV , and twin (2007)
- Ballot Permutations in Pret a Voter (2009)
- Pret a Voter with Re-encryption Mixes (2006)
- Pretty Good Democracy (2009)
- Secure voting using partially compatible homomorphisms (1994)
- Receipt-Free Mix-Type Voting Scheme - A Practical Solution to the Implementation of a Voting Booth (1995)
- VoteBox: a tamper-evident, verifiable electronic voting system (2008)
- A Simple Publicly Verifiable Secret Sharing Scheme and its Applications to Electronic Voting (1999)
- Coercion-Resistant Electronic Elections with Observer (2006)
- Scantegrity Mock Election at T akoma P ark (2010)
- Design and Prototype of a Coercion-Resistant, Voter Verifiable Electronic Voting System (2004)
- Remote Electronic Voting with Revocable Anonymity (2009)
- New cryptographic election protocol with best-known theoretical properties (2005)
- A New Approach Towards Coercion-Resistant Remote E-Voting in Linear Time (2011)
- Coercion-Resistant Hybrid Voting Systems (2010)
- Coercion Resistant Tallying for STV voting (2008)
- On the Security of ElGamal Based Encryption (1998)
- Universally Composable Incoercibility (2010)
- System reliability and free riding (2004)
- Multiple Casts in Online Voting: Analyzing Chances (2006)
- New client puzzle outsourcing techniques for DoS resistance (2004)
- On Coercion-Resistant Electronic Elections with Linear Work (2007)
- Minimum Disclosure Counting for the Alternative Vote (2009)
- Masked Ballot Voting for Receipt-Free Online Elections (2009)
- Analysis, Improvement and Simplification of Pret a Voter with Paillier Encryption (2008)
- A new receipt-free e-voting scheme based on blind signatures (2006)
- Protocols for Secure Computations (1982)
- Secure Electronic Voting Over the World Wide Web (1997)
- A secure bulletin board (2005)
- Apparatus and method for authenticating access to a network resource (2004)
- A Voting scheme (1992)
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- Judgement of 3 March 2009 – 2 BvC 3/07, 2 BvC 4/07 – Verfahren " u ber die Wahlpr" u fungsbeschwerden (2009)
- Consultation on the Draft Code of Practice for the Investigation of Protected Electronic Information – Part III of the Regulation of Investigatory Powers Act 2000 (2006)
- PKCS #5: Password-Based Cryptography Specification (2000)
- Intelligent surveillance alarm system and method (1986)
- Password methods and systems for use on a mobile device (2007)
- Open Document Format for Office Applications (OpenDocument) v1.1 (2007)
- Computerized password verification system and method for ATM transactions (2005)
- The 2008 Voluntary Voting System Guidelines, v1.1) (2009)
- The Misuse of RC4 in Microsoft Word and Excel (2005)
- Verifiable secret-ballot elections (1987)
- Practical Privacy (1992)
- Democracy Enhancing Technologies: Toward deployable and incoercible E2E elections (2011)
- Multi-Party Computation: Efficient Protocols, General Adversaries and Voting (2001)
- Receipt-Free Homomorphic Elections and Write-in Ballots (2004)
- Guide to the 2008 Cooperative Congressional Election Survey (2009)
- Segment-based Visual Cryptography (2007)
- Proof Systems for General Statements about Discrete Logarithms (1997)
- Secret-Ballot Receipts and Transparent Integrity: Better and less-costly electronic voting at polling places (2002)
- Creating a Secure Digital Voting Protocol for Campus Elections (1996)
- Publicly Verifiable Nominations Committee (NomCom) Random Selection (2004)
- Publicly Verifiable Nomcom Random Selection (2006)
- The P unchscan Voting System (2007)
- Review of RIES (2004)
- Strong Privacy Protection in Electronic Voting (2004)
- On improving the uniformity of randomness with Alameda County’s random selection process (2008)
- Description and Analysis of the RIES Internet Voting System (2008)
- Evaluation of Audit Sampling Models and Options for Strengthening C alifornia’s Manual Count (2007)
- Coercion-resistant electronic elections (2002)
- The Promise of Cryptographic Voting Protocols (2005)
- Practical high certainty intent verification for encrypted votes. (2004)
- An Electrical Voting Scheme using a Single Administrator (1998)
- Unconditionally Untraceable and Fault-tolerant Broadcast and Secret Ballot Election (1992)
- A Variant of the Chaum Voter-Verifiable Scheme (2004)
- Election Technology and the Voting Experience in 2008 (2008)
- Two Years of Broken Crypto (2008)
- Verified Cryptographic Implementations for TLS (2012)
- Trust Management for IPsec (2002)
- Performance Analysis of TLS Web Servers (2006)
- Provable Security in the Real World (2011)
- The homograph attack (2002)
- Randomness and the N etscape Browser (1996)
- Beyond the Basics of HTTPS Serving (2011)
- Parallel Collision Search with Cryptanalytic Applications (1999)
- SSL/TLS session-aware user authentication (2006)
- Inductive Analysis of the Internet Protocol TLS (1999)
- Trusted Paths for Browsers (2005)
- SSL and TLS : Designing and Building Secure Systems (2001)
- Predictable PRNG in the Vulnerable D ebian OpenSSL package: the What and the How (2008)
- Crytanalysis of MD5 compress (1996)
- Here come the $\oplus$ ninjas (2011)
- An Observatory for the SSLiverse (2010)
- Is the SSLiverse a Safe Place? (2010)
- Users’ Conceptions of Web Security: A Comparative Study (Short Talk) (2002)
- An Open Audit of an Open Certification Authority (2008)
- HTTPS Can Byte Me (2010)
- SSL/TLS Interception Proxies and Transitive Trust (2012)
- B lack O ps 2008: it’s the end of the cache as we know it (2008)
- More Tricks for Defeating SSL in Practice (2009)
- SSL And The Future Of Authenticity (2011)
- New tricks for defeating SSL in practice (2009)
- Man in the middle attacks: demos (2003)
- Getting SSLizzard (2011)
- 365-day: HTTPS cookie stealing (2008)
- Stealing the internet: An internet-scale man-in-the-middle attack (2008)
- Stone Knives and Bear Skins: Why does the Internet still run on pre-historic cryptography? (2006)
- The Internet is Too Secure Already (2003)
- Internet SSL Survey 2010 (2010)
- The CRIME attack (2012)
- Breaking the security myths of Extended Validation SSL Certificates (2009)
- Criminal charges are not pursued: Hacking PKI (2009)
- Leveraging the edge: abusing SSL VPN s (2008)
- Practice-Oriented Provable Security (1999)
- Improving B rumley and B oneh Timing Attack on Unprotected SSL Implementations (2005)
- Visual Spoofing of SSL Protected Web Sites and Effective Countermeasures (2005)
- An analysis of private browsing modes in modern browsers (2010)
- Lucky Thirteen: Breaking the TLS and DTLS Record Protocols (2013)
- DoubleCheck: Multi-path Verification Against Man-in-the-Middle Attacks (2009)
- Measuring SSL Indicators on Mobile Browsers: Extended Life or End of the Road? (2012)
- Building a Dynamic Reputation System for DNS (2010)
- Formal Treatment of Certificate Revocation Under Communal Access Control (2001)
- A New Approach to DNS Security ( DNSSEC ) (2001)
- Effects of Mobility and Multihoming on Transport-Protocol Security (2004)
- A Challenging but feasible blockwise-adaptive chosen-plaintext attack on SSL (2006)
- Secure Content Sniffing for Web Browsers, or How to Stop Papers from Reviewing Themselves (2009)
- A Security Evaluation of DNSSEC with NSEC3 (2010)
- A concrete security treatment of symmetric encryption (1997)
- Deploying a New Hash Algorithm (2006)
- Cryptographically Verified Implementations for TLS (2008)
- Session-Layer Encryption (1995)
- Trust Management for IPsec (2001)
- Chosen Ciphertext Attacks Against Protocols Based on the RSA Encryption Standard PKCS #1 (1998)
- A Method for Fast Revocation of Public Key Certificates and Security Capabilities (2001)
- The quest to replace passwords: a framework for comparative evaluation of web authentication schemes (2012)
- Remote timing attacks are still practical (2011)
- Remote Timing Attacks are Practical (2003)
- Secure Password-Based Cipher Suite for TLS (2000)
- Password Interception in a SSL/TSL Channel (2003)
- Pretty-Bad-Proxy: An Overlooked Adversary in Browsers’ HTTPS Deployments (2009)
- A Model of Certificate Revocation (1999)
- Trust No One Else: Detecting MITM Attacks against SSL/TLS without Third-Parties (2012)
- Using Client Puzzles to Protect TLS (2001)
- Attacking the IPsec Standards in Encryption-only Configurations (2007)
- The Battle Against Phishing: Dynamic Security Skins (2005)
- Why phishing works (2006)
- Origin-Bound Certificates: A Fresh Approach to Strong Client Authentication for the Web (2012)
- Tor: the second-generation onion router (2004)
- Analysis of the HTTPS Certificate Ecosystem (2013)
- Building Certification Paths: Forward vs. Reverse (2001)
- Establishing Identity Without Certification Authorities (1996)
- Why Eve and Mallory Love Android : An Analysis of Android SSL (In)Security (2012)
- Phishing on Mobile Devices (2007)
- Web Spoofing: An Internet Con Game (1997)
- Certificate Revocation: Mechanics and Meaning (1997)
- Dos and Don’ts of Client Authentication on the Web (2001)
- Provably Secure Browser-Based User-Aware Mutual Authentication over TLS (2008)
- Universally Composable Security Analysis of TLS (2008)
- Public Key Distribution with Secure DNS (1996)
- The most dangerous code in the world: validating SSL certificates in non-browser software (2012)
- Speeding up Secure Web Transactions Using Elliptic Curve Cryptography (2004)
- Plug-and-Play PKI : A PKI your Mother can Use (2003)
- The Problem with Multiple Roots in Web Browswers - Certificate Masquerading (1998)
- A Modular Correctness Proof of IEEE 802.11i and TLS (2005)
- Mining Your P s and Q s: D etection of Widespread Weak Keys in Network Devices (2012)
- Stealth DoS Attacks on Secure Channels (2010)
- Advanced Client/Server Authentication in TLS (2002)
- The SSL Landscape: A Thorough Analysis of the X.509 PKI Using Active and Passive Measurements (2011)
- Talking to Yourself for Fun and Profit (2011)
- An Evaluation of Extended Validation and Picture-in-Picture Phishing Attacks (2007)
- Protecting Browsers from DNS Rebinding Attacks (2007)
- ForceHTTPS : Protecting High-Security Web Sites from Network Attacks (2008)
- Beware of Finer-Grained Origins (2008)
- On the Security of TLS-DHE in the Standard Model (2012)
- SD3 : a trust management system with certified evaluation (2001)
- Layering Public Key Distribution Over Secure DNS using Authenticated Delegation (2005)
- On the Security of RSA Encryption in TLS (2002)
- Securing OpenSSL against micro-architectural attacks (2007)
- PKI Layer Cake: New Collision Attacks Against the Global X .509 Infrastructure (2010)
- Conditioned-safe Ceremonies and a User Study of an Appplication to Web Authentication (2009)
- Compression and Information Leakage of Plaintext (2002)
- Cryptographic Extraction and Key Derivation: The HKDF Scheme (2010)
- The order of encryption and authentication for protecting communications (or: how secure is SSL ?) (2001)
- Cryptographic Strength of SSL/TLS Servers: Current and Recent Practices (2007)
- Cut-&-Paste Attacks with JAVA (2002)
- Public Keys (2012)
- SSL splitting: securely serving data from untrusted caches (2003)
- mSSL : Extending SSL to Support Data Sharing Among Collaborative Clients (2005)
- Inferring the Source of Encrypted HTTP Connections (2006)
- A Cross-Protocol Attack on the TLS Protocol (2012)
- Finite-State Analysis of SSL 3.0 (1998)
- The Design and Implementation of Datagram TLS (2004)
- A Modular Security Analysis of the TLS Handshake Protocol (2008)
- Scalable Web Content Attestation (2009)
- Secure Blue: An Architecture for a Scalable, Reliable High Volume SSL Internet Server (2001)
- Revocation: Options and Challenges (1998)
- Certificate Revocation and Certificate Update (1998)
- Deploying and Monitoring DNS Security ( DNSSEC ) (2009)
- Web Sites Should Not Need to Rely On Users to Secure Communications (2006)
- Phoolproof Phishing Prevention (2006)
- Efficient Certificate Status Handling within PKI s: an Application to Public Administration Services (1999)
- Ceremony Analysis: Strengths and Weaknesses (2011)
- Security holes… Who cares? (2003)
- SSLACC : A Clustered SSL Accelerator (2002)
- A Study of what really breaks SSL (2011)
- Can We Eliminate Certificate Revocation Lists? (1998)
- Fast Checking of Individual Certificate Revocation on Small Systems (1999)
- The Emperor’s New Security Indicators: An evaluation of website authentication and the effect of role playing on usability studies (2007)
- Fast-Track Session Establishment for TLS (2002)
- An Empirical Study of Visual Security Cues to Prevent the SSLstripping Attack (2011)
- Domain-Based Administration of Identity-Based Cryptosystems for Secure Email and IPsec (2003)
- Exploring User Reactions to New Browser Cues for Extended Validation Certificates (2008)
- Certified Lies: Detecting and Defeating Government Interception Attacks Against SSL (2011)
- The Hitchhiker’s Guide to DNS Cache Poisoning (2010)
- Timing Analysis of Keystrokes and Timing Attacks on SSH (2001)
- On the Challenges in Usable Security Lab Studies: Lessons Learned from Replicating a Study on SSL Warnings (2011)
- Reinforcing bad behaviour: the misuse of security indicators on popular websites (2010)
- Chosen-Prefix Collisions for MD5 and Colliding X.509 Certificates for Different Identities (2007)
- Short Chosen-Prefix Collisions for MD5 and the Creation of a Rogue CA Certificate (2009)
- FOAF + SSL : REST ful Authentication for the Social Web (2009)
- Statistical Identification of Encrypted Web Browsing Traffic (2002)
- Crying Wolf: An Empirical Study of SSL Warning Effectiveness (2009)
- Toward Short-Lived Certificates (2012)
- Security Flaws Induced by CBC padding: applications to SSL , IPSEC , WTLS , \ldots (2002)
- The Inconvenient Truth about Web Certificates (2011)
- Analysis of the SSL 3.0 protocol (1996)
- The Multi-Principal OS Construction of the G azelle Web Browser (2009)
- Perspectives: Improving SSH -style Host Authentication with Multi-Path Probing (2008)
- Gathering Evidence: Use of Visual Security Cues in Web Browsers (2005)
- When Private Keys are Public: Results from the 2008 D ebian OpenSSL Vulnerability (2009)
- Revisiting SSL : A Large-Scale Study of the Internet’s Most Trusted Protocol (2012)
- The vulnerability of SSL to chosen-plaintext attack (2004)
- Transitions: Recommendation for Transitioning the Use of Cryptographic Algorithms and Key Lengths (2011)
- Ceremony Design and Analysis (2007)
- On the Security of TLS Renegotiation (2012)
- Not One Click for Security (2009)
- Sub-Prime PKI : Attacking Extended Validation SSL (2009)
- It’s Time to Fix HTTPS (2011)
- Bitcoin and Cryptocurrency Technologies (2016)
- Provisions: Privacy-preserving proofs of solvency for Bitcoin exchanges (2015) — link
- Bitcoin and Second-generation Cryptocurrencies (2015)
- A first look at the usability of B itcoin key management (2015)
- On Decentralizing Prediction Markets and Order Books (2014)
- Mixcoin: Anonymity for Bitcoin with Accountable Mixes (2014)
- DoS -resistant authentication with client puzzles (2000)
- Curbing junk e-mail via secure classification (1998)
- Evaluating User Privacy in Bitcoin (2013)
- A fistful of bitcoins: characterizing payments among men with no names (2013)
- An analysis of anonymity in the bitcoin system (2013)
- Quantitative Analysis of the Full Bitcoin Transaction Graph (2013)
- CommitCoin: Carbon Dating Commitments with Bitcoin (2012)
- Betting Markets with Decentralized Resolution and Persistent Reputation using Electronic Cash (2013)
- Using Prediction Markets to Enhance US Intelligence Capabilities: A ``Standard & Poors 500 Index’’ for Intelligence (2006)
- Interpreting prediction market prices as probabilities (2006)
- Prediction Markets (2004)
- Combinatorial Information Market Design (2003)
- Trading and exchanges: market microstructure for practitioners (2003)
- Zerocoin: Anonymous Distributed E-Cash from Bitcoin (2013)
- Blind signatures for untraceable payments (1982)
- Intention-Disguised Algorithmic Trading (2010)
- Cryptographic Securities Exchanges (2007)
- Cryptographic Rule-Based Trading (2012)
- Privacy for the Stock Market (2001)
- PayWord and MicroMint : two simple micropayment schemes (1996)
- Bitcoin: A peer-to-peer electionic cash system (2008)
- Proofs of work and bread pudding protocols (1999)
- Client Puzzles: A Cryptographic Defense Against Connection Depletion Attacks (1999)
- Time-lock puzzles and timed-release crypto (1996)
- Hashcash: a denial of service counter-measure (2002)
- Pricing via Processing or Combatting Junk Mail (1992)
- Secure names for bit-strings (1997)
- How to Time-Stamp a Digital Document (1990)
- Blending different latency traffic with alpha-mixing (2006)
- From a trickle to a flood: Active attacks on several mix types (2003)
- Towards an information theoretic metric for anonymity (2003)
2 of 729 cited works are in the corpus; resolved via arXiv source bundles, Semantic Scholar and OpenAlex. Corpus-wide: 2518 linked papers.