Distributed derivatives exchange/prediction market

[blueadept]

I've written up a rough draft of another idea.  This one should allow a distributed derivatives exchange or prediction market to exist on top of Bitcoin while permitting most of the bets to be off the blockchain.  I used constructs from my payment network scheme - bet channels similar to payment channels.   The write-up is here:

https://en.bitcoin.it/wiki/Off-Chain_Betting

Feedback appreciated.