Following our first piece on why real-time belongs to Linera, this article dives into how our architecture actually delivers it.
Prediction markets thrive on timing. When outcomes move fast, prices must move faster. But most blockchains were never designed for the velocity and concurrency these markets demand. Latency, congestion, and shared blockspace have kept on-chain prediction markets from achieving the responsiveness and reliability that live markets require.
Linera’s architecture changes that. It was built from the ground up to make real-time execution and horizontal scalability possible, without compromising decentralization. The foundation is what we call microchains, a model that transforms how blockchain computation is structured, validated, and scaled.
The problem: shared blockspace and delayed truth
Traditional chains process every transaction from every application in one global queue. This works for slow, sequential systems but breaks when many users interact simultaneously. For prediction markets, that means missed trades, unpredictable gas fees, and delayed resolution when everyone rushes in at once.
To keep up with real-time markets, infrastructure must behave like the markets themselves: concurrent, event-driven, and isolated enough that one surge of activity never slows the rest of the network. Linera’s design achieves exactly that.
“Infrastructure must behave like the markets themselves: concurrent, event-driven, and isolated enough that one surge of activity never slows the rest of the network.”
The Linera solution: microchains
A microchain is a lightweight, independent chain that shares security with the rest of the Linera network but operates in its own execution lane. Each user, application, or market can run on its own microchain while still participating in the same validator set.
This architecture solves three problems at once.
Parallelism. Every microchain processes its own transactions, so execution happens in parallel. When one market experiences a spike in trading volume, for example, a major election or championship match, it does not compete for blockspace with others.
Shared security. Despite their independence, all microchains rely on the same validator set. That means every transaction benefits from network-wide decentralization and cryptographic guarantees, even while operating in isolation.
Instant settlement. Because each microchain only handles its own local state, finality happens in sub-seconds. Trades confirm immediately. Market outcomes resolve the moment they are decided. Liquidity moves in real time.
This combination - parallel, secure, and fast - enables the kind of continuous, low-latency activity that live prediction markets depend on.
How it works in practice
When a builder deploys a prediction-market application on Linera, the system automatically allocates microchains to handle market creation, trading, and resolution. These microchains communicate through Linera’s consensus layer, ensuring that prices, liquidity, and outcomes remain synchronized across the network.
Validators confirm blocks for all active microchains concurrently. The result is not a single congested chain but a web of small, coordinated chains running at once. Performance scales horizontally: as more users or markets appear, more microchains activate, each maintaining real-time responsiveness.
Because each market can be contained within its own microchain, computation stays local, predictable, and low-cost. Builders can configure resource limits, define their own fee models, and rely on deterministic performance even during peak events.
Why this matters for prediction market builders
For developers creating new market platforms, this design means freedom from the bottlenecks that slow every other blockchain.
You can create new markets without worrying about gas spikes from unrelated applications. You can design user interfaces that reflect price changes instantly. You can implement market-maker logic or oracles that resolve in real time, knowing the chain will keep up.
The Linera SDK provides developers with the primitives to deploy these markets quickly: customizable contracts, flexible execution contexts, and wallet integrations that make participation seamless for end users.
Linera’s SDK provides builders primitives to deploy prediction markets that
Avoid congestion
Have tighter market-maker spreads
Preserve full on-chain settlement
Deliver trustless, transparent resolution
Unlock interactive scaling
Why it matters for traders and participants
Participants benefit from the invisible advantages of the architecture. Transactions finalize in near real time. Fees stay consistent, even when volume surges. Market resolution and payouts occur immediately on-chain.
For anyone trading live events like sports, politics, or crypto volatility, these differences are not incremental. They are transformative. Real-time settlement means new forms of strategy, higher liquidity, and the ability to respond as the world changes.
Linera’s architecture ensure users benefit from
Near-instant confirmations
Transparent settlement
Reliable UX during peak events
Full on-chain custody and decentralization
Why it matters for the ecosystem
The same qualities that make Linera ideal for prediction markets also make it foundational for any real-time application: autonomous agents, live auctions, gaming, or decentralized finance that operates at human speed.
Prediction markets are simply the first proof point. They reveal what becomes possible when blockchain infrastructure behaves like the networks it seeks to replace as fast, parallel, and always on.
The road ahead
Linera’s testnet phases have already demonstrated the potential of this model: thousands of microchains operating simultaneously, each reaching finality within moments. Ongoing releases are expanding SDK support, integrating data oracles, and preparing mainnet for builders who want to launch live prediction markets at scale.
In the coming months, we’ll share deeper technical documentation, benchmarks, and developer examples showing exactly how to implement market logic, connect external data feeds, and optimize performance under load.
Closing
Real-time markets demand real-time infrastructure. Linera’s microchain architecture delivers that foundation, combining the scalability of parallel execution with the trust of a decentralized validator set.
For builders, it means a chance to create markets that finally feel as fast as they think. For users, it means participating in live truth markets that never pause or lag.
The infrastructure for the next generation of prediction markets already exists. It’s called Linera.
About Linera
Linera is the first blockchain optimized for real-time applications and interoperability at Internet scale. Founded by former Meta engineer Mathieu Baudet, Linera introduces microchains—lightweight, parallel chains that enable direct user interaction. Backed by top-tier crypto investors, the protocol is live on testnet and preparing for mainnet launch.
