PhantomBet

A privacy-first decentralized prediction market with AI-powered settlement using Chainlink Runtime Environment (CRE).

Bet in the shadows. Settle with truth.

🚀 Features

• Privacy-Preserving Betting: Commitment-reveal scheme keeps bets private during betting phase
• AI-Powered Settlement: Automated outcome verification using GPT-4 and multiple data sources
• Multi-Source Verification: Cross-references news APIs, sports data, and social media
• Cross-Chain Ready: Built on Arbitrum with CRE orchestration
• Institutional Grade: Compliance-friendly privacy with transparent settlement

🏗️ Architecture

┌─────────────────────────────────────────────────────────────┐
│                         Frontend (React)                     │
│  Market Creation | Betting Interface | Settlement Dashboard  │
└─────────────────────┬───────────────────────────────────────┘
                      │
                      ▼
┌─────────────────────────────────────────────────────────────┐
│                   Smart Contracts (Solidity)                 │
│  PredictionMarket.sol | CRESettlementOracle.sol             │
└─────────────────────┬───────────────────────────────────────┘
                      │
                      ▼
┌─────────────────────────────────────────────────────────────┐
│              Chainlink Runtime Environment (CRE)             │
│                   Settlement Workflow                        │
├─────────────────────────────────────────────────────────────┤
│  ┌──────────────┐  ┌──────────────┐  ┌──────────────┐      │
│  │  News API    │  │ SportsData   │  │  OpenAI GPT-4│      │
│  │  Integration │  │  Integration │  │  Analysis    │      │
│  └──────────────┘  └──────────────┘  └──────────────┘      │
└─────────────────────────────────────────────────────────────┘

📁 Project Structure

chainlink-prediction-market/
├── contracts/              # Smart contracts (Hardhat)
│   ├── src/
│   │   ├── PredictionMarket.sol
│   │   └── CRESettlementOracle.sol
│   ├── test/
│   └── scripts/
├── cre-workflow/          # Chainlink CRE workflow
│   ├── src/
│   │   └── settlement-workflow.ts
│   └── config/
│       └── cre.config.json
├── frontend/              # React frontend
│   └── src/
│       ├── components/
│       ├── hooks/
│       └── utils/
└── docs/                  # Documentation

🛠️ Technology Stack

• Smart Contracts: Solidity 0.8.x, Hardhat
• Blockchain: Arbitrum Sepolia (testnet)
• CRE: Chainlink Runtime Environment
• AI: OpenAI GPT-4o-MINI
• Frontend: React, Vite, ethers.js
• Data Sources: News API, SportsData.io

📋 Prerequisites

• Node.js >= 18
• npm or yarn
• Chainlink CRE CLI
• Wallet with Arbitrum Sepolia ETH

🔑 API Keys Required

Create a .env file with:

OPENAI_API_KEY=your_openai_key
NEWS_API_KEY=your_newsapi_key
SPORTSDATA_API_KEY=your_sportsdata_key
PRIVATE_KEY=your_wallet_private_key
ARBITRUM_SEPOLIA_RPC=your_rpc_url

🚀 Quick Start

1. Install Dependencies

# Install contract dependencies
cd contracts
npm install

# Install CRE workflow dependencies
cd ../cre-workflow
npm install

# Install frontend dependencies
cd ../frontend
npm install

2. Deploy Contracts

cd contracts
npx hardhat compile
npx hardhat deploy --network arbitrum-sepolia

3. Test CRE Workflow

cd cre-workflow
chainlink-cre simulate src/settlement-workflow.ts

4. Run Frontend

cd frontend
npm run dev

🧪 Testing

Smart Contract Tests

cd contracts
npx hardhat test

CRE Workflow Simulation

cd cre-workflow
chainlink-cre simulate src/settlement-workflow.ts --config config/cre.config.json

📖 How It Works

1. Market Creation

Anyone can create a prediction market with:

• Question (e.g., "Will it rain in London tomorrow?")
• Possible outcomes (e.g., "Yes", "No")
• Betting deadline

2. Privacy-Preserving Betting

Users place bets using commitment scheme:

1. Generate random secret
2. Create commitment: hash(betAmount + outcome + secret)
3. Submit commitment to contract (bet is hidden)
4. Store secret locally for later reveal

3. Reveal Phase

After betting deadline:

1. Users reveal their bets with the secret
2. Contract verifies commitment matches reveal
3. Invalid reveals are rejected

4. AI-Powered Settlement

CRE workflow automatically:

1. Fetches data from multiple sources (News API, SportsData, etc.)
2. Sends data to GPT-4 for analysis
3. Requires consensus from 3+ sources
4. Submits verified outcome to blockchain
5. Triggers settlement

5. Winner Payout

Winners claim their share of the prize pool proportional to their bet amount.

🔒 Privacy Guarantees

• During Betting: All bets are hidden via cryptographic commitments
• After Reveal: Bets become public (necessary for prize distribution)
• No Identity Required: Wallet addresses only, no KYC
• Transparent Settlement: AI decision-making is auditable

🎥 Demo Video

[Link to 3-5 minute demo video]

📄 Chainlink Integration Points

CRE Workflow

• File: cre-workflow/src/settlement-workflow.ts
• Purpose: Orchestrates AI-powered outcome verification
• External Integrations: OpenAI, News API, SportsData
• Blockchain Interaction: Reads market data, submits settlements

Oracle Contract

• File: contracts/src/CRESettlementOracle.sol
• Purpose: Receives verified outcomes from CRE
• Chainlink Features: CRE integration, multi-source verification

🏆 Hackathon Tracks

This project qualifies for:

1. ✅ Prediction Markets - Core functionality
2. ✅ CRE & AI - AI-powered settlement via CRE
3. ✅ Risk & Compliance - Privacy-preserving with transparent settlement

📝 License

MIT