Augur is a decentralized, open-source platform for prediction markets that was built on the Ethereum blockchain. It was founded in 2014 by Jack Peterson and Joey Krug which is developed by Forecast Foundation. The platform is available for any user and anyone can make predictions and can earn from it without heavy investments in it. Are you eager to know more about this set of open-source smart contracts? Then you are in the right place.
An Overview Of Augur
Augur is a peer to peer prediction market in which users receive payouts when they predict the winning outcome. It also acts as a decentralized source that verifies real-world occurrences. The company was successfully crowdfunded in August 2014 and its native token, REP is used as the source of reward and gas for making predictions. It was not designed to correct any specific issue related to technology or to overcome any drawbacks of technology.
Wisdom of the crowd concept
Wisdom of crowd concept is the approach based on the idea that larger groups of people are smarter than individuals, even those who hold specialist knowledge about a particular subject. This concept helps to make successful predictions about certain events. The users will create pools of data on any subject by making predictions on the Augur platform. Wisdom of crowd concept makes the prediction process more accurate and closer to real-time availability.
How to use Augur platform?
Augur betting platform can be used on the basis of two primary actions available on it. They are:
- Creating markets: to create an Augur prediction platform you need to spend a small amount of Ethereum. After creating a market, you would set the taker and maker fees of that market. It will be a percentage of the rewards that winning traders receive. If you are a market creator, then you receive this fee and it must be between zero and fifty percent of the winners’ rewards.
- Trading event shares: instead of creating your own market, you can buy and trade shares that represent the odds that the event in a market will happen, that is through trading event shares.
Reputation (REP) tokens
The REP tokens are the native tokens of Augur prediction platform. The REP tokens are used to stake reports on the outcome of events for the different markets. It is the unique token usable only on the Augur gambling platform. The token was launched in 2018 and users lock REP tokens in escrow, thereby staking them, in order to assert the outcome of a particular created market. The uses of REP token are to:
- Create a bet
- Dispute a bet’s outcome
- Purchase participation tokens
It can be received or purchased form:
- Purchasing it on exchange
- Being right about a dispute
- Report ona bet
Augur, a decentralized oracle and prediction market platform can be used to literally bet on anything. It is one of the oldest projects out there and was one of the first to be built on top of Ethereum. Augur platform has also paved a way for other dApps on the Ethereum network.