> ## Documentation Index
> Fetch the complete documentation index at: https://learn.polymarket.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Why Crypto?

> Why Polymarket uses crypto and blockchain technology to create the world’s largest Prediction market.

Polymarket operates on Polygon, a proof-of-stake layer two blockchain built on [Ethereum](Ethereum.org). All transactions are denominated in USDC, a US-dollar pegged stablecoin.

This architecture offers several advantages over traditional prediction markets:

### Stable Value.

Polymarket denominates trades in USDC, which is pegged 1:1 to the US Dollar. This shields you from the volatility associated with other cryptocurrencies and offers a stable medium for trading.

### Regulated Reserves

USDC operates in adherence to regulatory standards and is backed by reserved assets.

### Transparency

Blockchain technology facilitates transparency, as all transactions are recorded publicly.

### Global Reach

Research has shown that wide availability of prediction markets increases their accuracy. Using decentralized blockchain technology removes the need for a central authority in trading, which fosters fairness and open participation around the globe.