We can build a decentralized SatoshiDice quite easily.

Player1 bets against Player 2 on the result of the hash of block height N % 2. The blockchain locks in the funds and decides the winner.

Rough idea:

COPY(my_address, my_priv_key, copied_address)

From this moment onward, every operation done by copied_address is copied by my address, in proportion to our funds. Meaning if copied_address holds X MSC and my_address holds Y MSC, and copied_address now places a market offer to sell Z MSC, then my_address will sell Z*Y/X MSC.

This of course needs more details to account for multiple currencies and assets stored on the same address.

Anyone can publish events into the blockchain.

E.g. A soccer league publishes results of all soccer games..

(This is analogous of course to Price Feeds)

1. Using Event Feeds, users can bet on the results of events.
2. A prediction market is phase two - once bets that were already closed can now be freely traded.

A lot of people don't know this is possible, but it is. Mastercoin isn't a specific technology, it's a project that can switch backends/infrasturcture if needed.

I think we need to brainstorm about this a bit, and see whether this can help us combat some potential future scalability issues / changes in the Bitcoin protocol. This ticket is for creating a wiki article document this scenario.

We decide on a certain block height in the future. The decision is done via decentralized voting of course.

Then we start a new dedicated alt chain which is entirely premined by holders of Mastercoin. Tokens on the new chain are initially owned by private keys of MSC holders.