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I recently had to confirm to a brokerage that I won’t be using the money I’m withdrawing for any illegal activities.

A sure sign of a legal team or possibly an entire legal system having lost the plot. Hopefully only the former.

You seem to be arguing that that's the canonical definition of a prediction market, and anything else, including markets merely aggregating non-insider beliefs about future events, should be called something else. Do you have a better proposal?
Would you argue the same for the stock market, i.e., that the only rational active market participants are insider traders? If not, why not?

Good point on there needing to be some application-level addressing anyway.

On top of that, I believe the UDP checksum can be omitted as well at least on some OSes (and is arguably not necessary for fully encrypted/authenticated payloads) – leaving really just the two bytes for the "length field".