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# 2.2 The Fragmentation of Prediction Markets
The current prediction market ecosystem consists of multiple independent platforms, resulting in significant fragmentation:
* Liquidity is dispersed: Different platforms operate with their own user bases, liquidity pools, and event markets, with liquidity unable to flow naturally across platforms.
* Users must compare markets across platforms: To participate in a given event, users need to browse multiple platforms, compare probabilities, and understand different rule sets.
* The same event carries different probability quotes: The same event often trades on multiple platforms simultaneously, with implied probabilities varying from one platform to another.
* Information acquisition and trading costs are elevated: Users must determine for themselves whether price discrepancies represent trading opportunities or market noise.
* Market pricing efficiency is compromised: When liquidity is fragmented across multiple venues, the probabilistic consensus reflected by market prices becomes incomplete.
Prediction markets are currently in a development phase similar to the early days of DEXs, where each ecosystem operates as an isolated silo — highly inefficient. Just as DEX aggregators (such as 1inch) addressed the fragmentation of liquidity, prediction markets equally require an aggregation and execution layer to improve the current state.
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