---
id: 01_prediction_markets_use_case
title: Prediction Markets use case
sidebar_label: Prediction Markets use case
---

Prediction markets enable deep information discovery ranging from topics like the outcome of political events to application to solve for resource allocation in complex domains. Here we introduce another use case which will serve as an example to build your own prediction market.

In the past years more weather extremes could be observed all over the world. In Europe, the last two summers were considered the hottest since the beginning of all weather records. This resulted in dry fields and loss of crops. Prediction markets could forecast the impact of extreme weather on the crop's yield and the resulting price for producers and consumers. So we will be looking into the influence of weather conditions on food prices. 

Markets for this application could ask:

> 1. Will the summer 2020 in Germany break weather records for hottest recorded temperatures?
> - Yes
> - No

> 2. Will the potato price in Germany increase in autumn 2020? 
> - Yes
> - No

> 3. Will the producer price of milk increase in 2020 in Germany?
> - Yes
> - No

> 4. Will the retail price for milk increase in 2020 in Germany?
> - Yes
> - No

This is just a small collection of possible markets but it gives an idea where we are going.
With the help of this use case we will guide you through the different steps to build your prediction market application.