Prediction markets, also known as betting or information markets, are open exchanges that leverage financial incentives to predict specific outcomes, with market prices reflecting the crowd's aggregated probability for an event. This concept, often called "the wisdom of the crowd" (first noted by Francis Galton in 1907), has roots in historical political betting as far back as 1503. Modern examples include the University of Iowa's Iowa Electronic Markets, launched in 1988 for presidential elections, and the Hollywood Stock Exchange (1996), which famously predicted many Oscar nominees. While platforms like Intrade.com facilitated real-money trading from 2001 to 2013, controversial initiatives, such as the U.S. Department of Defense's "terrorism futures market" in 2003, were quickly canceled due to public backlash. Ultimately, these markets aim to aggregate diverse beliefs to offer insights into uncertain future outcomes.