Notch Protocol

A Cryptographic Framework for Verifiable Prediction Scoring and Alpha Commoditization

Qais Alassa (Bethlehem, Palestine) · Osama Alashqar (Oslo, Norway)

Technical Specification v0.1 · March 2026

Read the Paper

The full technical specification covering the commitment scheme, Brier score calibration, difficulty adjustment, the instrument layer (Alpha Passes, Futures, Indices), oracle architecture, and $NOTCH token economics.

Abstract

We present NOTCH, a protocol for the cryptographic commitment, verification, and scoring of price predictions on Ethereum Layer 2. The protocol implements a commit-reveal scheme scored using the Brier Score — a strictly proper scoring rule where expected score is uniquely optimized when stated confidence equals true belief.

Key Contributions

  • Commit-reveal scheme making predictions unforgeable and non-repudiable
  • Brier Score calibration — penalizing both overconfidence and underconfidence
  • Three financial instruments: Alpha Passes, Alpha Futures, Alpha Indices
  • Difficulty multiplier adjusting scores for prediction complexity
  • Sybil resistance through calibration scoring + staking requirements

Deployment

Designed for Arbitrum One with a complete prediction cycle costing approximately $0.01–$0.03 in gas.

DOI: 10.5281/zenodo.19118356

Notch Protocol is experimental software. Predictions are not financial advice. Use at your own risk. Read full disclaimer