BCGAME - Free 5BTC Daily Bonus!The Augur cryptocurrency is a decentralized, peer-to-peer and open-source prediction platform built on the Ethereum blockchain.
In this article, we will discuss:
What is Augur (REP) token?
The Augur cryptocurrency is software with the aim of encouraging a global computer network to maintain a market forecasting platform on top of Ethereum (ETH).
A forecast market is no different from an exchange, except that instead of trading assets, users bet on the outcome of events. With Augur, users can create and trade “stocks” that represent a portion of the value of the results, without relying on a company to make or oversee these markets.
The software itself maintains an order book for each market created, and there is no limitation on what events can be traded, meaning that markets can be created to help predict the outcome of everything from election results to weather.
As with any betting system, when users predict an outcome correctly, they are rewarded. Otherwise, they lose the capital they bid on. The idea is for market participants to gain value by helping outside observers leverage crowdsourcing expertise to bring together global data points.
If and when users correctly predict the results, they are rewarded with REP, the crypto asset that powers the Augur network.
The REP itself can be used to create a prediction market, contest an outcome of a known outcome, or purchase participation tokens. Users can also obtain REP by purchasing it on Exchanges, reporting on the outcome of a bet or being on the right side of a result dispute.
Still, traders don't even need to own or use REP to bet on the platform. Instead, its main purpose is for users who want to participate in the event results reporting process.
How does the Augur token work?
The Augur cryptocurrency runs on blockchain Ethereum , which means that stock purchases on its prediction markets are made using ETH, Ethereum's native asset. Traders who want to use a less volatile asset can also bet on markets using DAI, a stablecoin running on top of Ethereum.
The platform leverages Ethereum's smart contracts to execute all final bet results, ensuring correct results are reported and winners are paid.
To facilitate the user experience to bet on the event's results, Augur divides its execution process into four distinct steps:
market creation – anyone can create a betting market based on real world events. Creators define the source of resolution (where the outcome will be determined) and a creator rate (a percentage of a trader's earnings) that they will collect once the market stabilizes.
Trading in the market – users buy shares on the outcome of an event, the price of which fluctuates depending on the amount of bets placed.
Customized – The results of each event are determined by the oracle of Augur, which brings real-world information to the blockchain. Reporters report on the market, and the consensual result of all reporters is considered “true”. Those whose report was not part of the consensus lose their staked REP, which is then distributed to those who reported with the consensus.
Sale off – Traders close positions and receive payments
Who created the Augur cryptocurrency?
Augur is developed by the Forecast Foundation, which was founded in 2014 by developer Jack Peterson and computer scientist Joey Krug, among others.
In 2015, Augur became one of the first cryptocurrency projects to raise funds in an Initial Coin Offering (ICO), in which the Forecast Foundation sold 8,8 million REP coins, raising $5,5 million.
The platform finally went live in 2018 and, in its first month after launch, $1,53 million was wagered by users on more than 800 result bets.
Why does the REP token have value?
Augur's REP cryptocurrency gets its value from its ability to ensure the successful execution of smart contracts that depend on the Augur network.
Most notably, the REP is integrated into the network itself and is the only currency that can be used to report event results.
In order to report the event results and earn a share of the platform fees collected during the trading event, we Augur (“reporters”) need to wager the REP in a special contract.
The consensual decision of all of us is considered the “truth” by the oracle of Augur. If a node reports a result other than the consensus, its staked REP is then confiscated by the network and redistributed to honest us.
However, Augur isn't the only cryptocurrency project looking to disrupt the forecasting market, meaning it could face competition from users that would put pressure on the price of its currency.
Augur's main competitors are other decentralized forecasting market platforms, the main one being Gnosis, which has varied technical capabilities.
Why use the REP token?
Forecast markets like Augur offer a unique view of global sentiment.
As such, investors may want to add REP to their portfolio if they believe the forecast market will become an essential tool in capital markets and data science.
Likewise, Augur adds to the cryptocurrency market, allowing users to trade the potential outcomes of events. This can range from predicting the price of a particular asset to betting on the outcome of elections.
Users who believe in the long-term value of driving change with predictive markets may also want to support the platform and its broader mission.
REP Market Policy and Availability
As of December 12, 2019, the market capitalization of the REP was $97, with a 856-hour trading volume of $775. At the 24 collective sale of the token, 7 million of tokens were distributed to the public, with 271 million tokens reserved for operating costs.
The REP token can be purchased in cryptocurrency exchanges such as Bittrex, Coinswitch, Poloniex, Coinbase, Kraken, etc.
Augur is an ERC 20 token, which means you can store it in any wallet that supports ERC-20. Other options include hardware wallets such as Ledger Nano X, Ledger Nano S, Trezor, KeepKey, etc.
What is the future of Augur cryptocurrency and should you invest in it?
The Augur cryptocurrency was one of the first projects to launch on the Ethereum blockchain. It is also one of the Ethereum projects that made headlines after its release and remains consistent. In addition, the project gained the node of notable figures in the sphere of crypto and blockchain.
Brian Armstrong, CEO of Coinbase, described it as “an amazing project”, while Vitalik Buterin, co-founder of Ethereum, noted its ingenuity when he called it “Uber for knowledge”.
We believe its uniqueness among other Ethereum tokens, along with its solid reputation, makes it a worthwhile investment.
Conclusion
The Augur cryptocurrency has been around for some time now – being one of the first to be built on the blockchain Ethereum. It is a decentralized market forecasting platform that is available to anyone. With a small amount of ether, anyone can participate in a stock trading probability event.
