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System Architecture
Precognition implements a three-tier architecture combining a modern web frontend, the Precognition AI Agent, and a secure Solana smart contract for trustless prediction market operations.
System Architecture
Precognition operates as a three-tier decentralized system, combining a modern web interface with the Precognition AI Agent and on-chain smart contracts.
Web Application
User Interface Layer
Precognition AI Agent
AI Processing Layer
Solana Program
On-Chain Logic Layer
Role-Based Access Control
The system implements strict role separation to ensure security and proper authorization for all operations.
Admin
Initializes markets, configures parameters, and withdraws accumulated treasury fees.
Precognition AI Agent
Creates predictions, resolves outcomes based on real-world data, and cancels invalid predictions.
User
Stakes tokens on predictions, votes VALID or FUD, and claims rewards or refunds.
Data Flow Summary
1. Users interact with the web app to view predictions and submit votes
2. The web app communicates with Solana via RPC for reads and wallet for writes
3. The Precognition AI Agent monitors markets and creates predictions with AI confidence scores
4. Smart contracts handle all token movements and state transitions on-chain
Technology Stack
Frontend
- Next.js 16 — React framework with App Router
- React 19 — UI library
- TypeScript — Type-safe JavaScript
- Tailwind CSS 4 — Utility-first styling
- Framer Motion — Animations
- Zustand — State management
Precognition AI Agent
- AI/ML Models — Market analysis and predictions
- Data Aggregation — Real-time market data feeds
- Verification Engine — Outcome validation
Smart Contract
- Anchor 0.32.1 — Solana development framework
- Rust — Systems programming language
- SPL Token — Token standard integration
Role-Based Access Control
The system implements strict role-based access control at the smart contract level, ensuring that only authorized entities can perform specific operations.
Admin
System administrator with full control over market configuration
Permissions
- Initialize prediction market
- Configure fee parameters
- Set voting duration and quorum
- Withdraw treasury funds
Precognition AI Agent
AI-powered agent responsible for prediction management
Permissions
- Create new predictions
- Resolve predictions with outcomes
- Cancel predictions (no quorum)
- Set AI confidence scores
User
Market participant who votes on predictions
Permissions
- Stake tokens on predictions
- Vote VALID or FUD
- Claim rewards (if winner)
- Request refunds (if cancelled)
Data Flow Overview
Prediction Creation
The Precognition AI Agent analyzes market data and creates predictions on-chain with metadata stored on IPFS. Each prediction includes target metrics, timeframes, and AI confidence scores.
User Participation
Users connect their Solana wallets through the web app, browse active predictions, and stake tokens to vote. All transactions are signed client-side and submitted to the Solana network.
Resolution
After the voting period ends, the Precognition AI Agent verifies real-world outcomes against prediction criteria and submits the resolution transaction, determining winners.
Reward Distribution
Winners claim rewards through the smart contract, receiving their original stake plus a proportional share of the losing pool. All calculations are performed on-chain.