EddieJayonCrypto
12 Sep 25
Polymarket is partnering with Chainlink to use its oracle platform for resolving digital asset-related bets, shifting from its previous system with UMA. Chainlink's data streams will verify price targets for Bitcoin and other cryptocurrencies, enhancing trust through precision and speed. The colla...
Polymarket is shaking up the prediction market scene by handing over the reins for resolving digital asset-related bets to Chainlink, the oracle platform known for its precision and speed. This move marks a shift in how outcomes are determined on the platform, with Chainlink now acting as the go-to source for verifying whether price targets are hit within specific timeframes. Chainlink co-founder Sergey Nazarov hailed the partnership as a “pivotal milestone,” emphasizing that high-quality data and tamper-proof computation could restore trust in prediction markets. For now, the collaboration focuses on markets tied to Bitcoin and other cryptocurrencies, leveraging Chainlink’s data streams that cover 366 trading pairs. But the two firms are also eyeing more subjective questions—like whether Ukrainian President Volodymyr Zelenskyy wore a suit or if the OceanGate Titan submersible was found. These topics have sparked controversy before, with users arguing that UMA’s dispute resolution system—Polymarket’s previous oracle—delivered unfair outcomes. UMA’s approach relies on token holders voting to determine truth, a system designed to incentivize accuracy but vulnerable to manipulation by wealthy stakeholders. Last March, a market tied to a U.S.-Ukraine minerals deal resolved against user expectations due to UMA’s system, though Polymarket dismissed it as a “market failure” and refused refunds. Recently, UMA tightened its rules by creating an “allowlist” of 37 proposers for dispute resolutions, a move aimed at curbing abuse. Chainlink’s entry brings a different model: it aggregates data from multiple off-chain sources, offering a more objective, automated solution. This could address concerns about bias or manipulation, though it’s unclear how the partnership will handle subjective questions. For now, the focus remains on crypto markets, where Chainlink’s reputation for reliability could enhance Polymarket’s credibility. Meanwhile, Chainlink’s growing influence extends beyond prediction markets. Earlier this week, Nazarov hinted at deeper collaborations with Trump administration agencies, aiming to bring federal government functions on-chain after working with the Department of Commerce on data feeds. As Chainlink and Polymarket push forward, the question remains: Can a blend of objective data and evolving governance models finally make prediction markets a trusted tool for both casual bettors and serious investors?