Systems and methods for providing a decentralized volatility platform for cryptocurrency option trading

A method for trading options, the method comprising:

• upon an option activation via a smart contract, initializing a set of parameters, wherein the smart contract operates on a blockchain network comprising a plurality of distributed compute nodes operating a distributed consensus algorithm that determines when to record transactions on a distributed ledger across the plurality of distributed compute nodes, the transactions being recorded in an immutable manner;
• computing via the smart contract an expected price range for an underlier based on the set of parameters;
• subdividing via the smart contract the expected price range into a fixed number of standard risk blocks, wherein each respective standard risk block of the fixed number of standard risk blocks comprises a price interval centered around a specific value, wherein each standard risk block comprises a binary state dependent unit that pays at an expiration of an option lifecycle a fixed amount for a purchased stake if a reference value meets a specific condition, and nothing otherwise;
• and
• handling via the smart contract a settlement of options via payment of stakes purchased in standard risk blocks.