> For the complete documentation index, see [llms.txt](https://docs.polyquest.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.polyquest.xyz/prediction-oracle/prediction-oracle-system.md).

# Prediction Oracle System

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The **Prediction Oracle System** is an essential part of Polyquest’s vision for a fully decentralized prediction platform that leverages the power of Web3 without relying on Web2 data sources, which can be prone to manipulation. The system evolves through three stages, each designed to empower users, reward collective intelligence, and expand the platform's capabilities to support external applications.

## **Key Principles**

* **Decentralization**: The oracle system removes reliance on centralized Web2 data sources by leveraging collective user action to determine the outcome of real-world events.
* **Transparency**: Every action within the oracle system is recorded on-chain, ensuring transparency and preventing manipulation.
* **Delegation of Power**: Both oracle participants (nodes) and governance groups share responsibility, ensuring that no single entity can control outcomes, preventing data corruption.


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