HOW IT WORKS
Oracle combines Solana's high-throughput execution with Arcium's cryptographic privacy layer to create prediction markets where no participant's position is ever exposed.
MARKET CREATED ON-CHAIN
A market creator deploys a new prediction market to the Solana program. The market is assigned to an Arcium MXE (Multiparty eXecution Environment) cluster that will handle all encrypted computations.
Cluster assignment - Arcium nodes register to handle this market's MPC jobs.
USERS ENCRYPT CLIENT-SIDE
Before submitting a position, the user's browser generates a fresh ElGamal keypair, encrypts both their stake amount and YES/NO choice using the cluster's public key. The plaintext values never leave the browser.
Client-side encryption — Arcium SDK generates the ciphertexts locally.
CIPHERTEXTS STORED ON-CHAIN
Only the encrypted ciphertexts (C1, C2 curve points) are stored in the Solana account. Anyone inspecting the chain sees only opaque byte arrays - no amounts, no choices.
On-chain storage - Arcium nodes monitor the chain for new position events.
HOMOMORPHIC ACCUMULATION
As positions arrive, Arcium nodes homomorphically accumulate the encrypted stakes - adding ciphertexts together without decrypting them. This maintains a running encrypted tally of YES and NO stakes.
Off-chain MPC - Additive homomorphism over Ristretto255 ElGamal ciphertexts.
THRESHOLD MPC DECRYPTION
After the resolution timestamp, anyone triggers the tally. Arcium's threshold MPC protocol requires a quorum of nodes to cooperate for decryption - no single node can learn the result alone.
Threshold decryption - t-of-n nodes must participate; collusion resistance built in.
OUTCOME REVEALED & CLAIMS OPEN
The decrypted YES/NO totals and outcome are written on-chain. Individual position amounts are also revealed via per-position MPC decryption. Winners claim proportional payouts from the vault.
Result relay - Arcium relayer posts the verified decryption result on-chain.
WHY THIS MATTERS
Traditional markets
Public stakes create herding - participants copy popular positions rather than contributing genuine information, distorting prices.
Oracle with Arcium
Encrypted stakes force genuine belief-based positions. No one can herd on hidden information. Outcomes aggregate true wisdom of the crowd.