Updated: Dec 20, 2019
Augur is an extremely innovative, Ethereum-based, decentralized application of blockchain technology. It uses a blockchain network to provide an open-source, peer-to-peer, and trustless oracle and prediction market platform, which successfully leverages crowd wisdom to create a futuristic search engine. This new engine runs on its own Ethereum based ERC20 token, called REP or Reputation tokens.
This guide will talk about what Augur is designed for, the team behind it, the way it works, and various uses and applications.
What Is Augur Designed For?
Augur was designed to use blockchain technology for creating a robust and decentralized prediction or betting platform, which had immense opportunities for growth in the future. While several betting platforms used cryptocurrencies as tokens to place individual bets, there was no single platform that employed blockchain tech completely.
The team after dabbling in Bitcoin forks wanted to create an individual niche market sector in the crypto space, which would stand out and be recognizable among other altcoins. REP is one of the most brazen online projects, which is on the path to success.
Who Is the Team Behind Augur?
Augur was released in November 2014, by developers Joseph Krug and Jack Peterson. However, the ICO began only in 2015, which generated over $5.1 million in funding from 2,744 accounts. Augur is an OG in the crypto world.
The founder duo has ample experience in working with crypto and blockchain technology. They have previously created Sidecoin, which is a Bitcoin fork. The creator of Ethereum, Vitalik Buterin, is an advisor to Augur.
How Does Augur Work?
Augur runs on the Ethereum network which allows its users to benefit from a decentralized, robust, and peer-to-peer platform. The technology has been developed using smart contracts. REP is the primary token used on Augur platform to vote on prediction markets.
Users can bet on the outcome of various future events to receive monetary prizes and rewards. Rewards become bigger when an event is less likely to take place. “The Wisdom of the Crowd” from various predictors and users is used by Augur to form real-time predictive data, which is called to be more accurate than the data analyzed by leading experts.
There are two primary actions available on Augur – creating markets and trading event shares. A small amount of Ethereum is needed to create markets that are future events, where you invite others to bet upon. Market creators make sure that the creator fee is low enough to incentivize people to bid, while high enough to cover the Ethereum spent on creating the market.
Users can also buy and trade shares that represent gambling odds or chances that an event may take place. Many traders buy individual positions at a low cost and then continue to sell them higher, due to fluctuating share prices to make a tidy profit.
What are Current and Future Applications of Augur?
REP or Reputation tokens power the Augur Decentralized Oracle System. They are primarily used as a stake to report on the outcome of a future event, for the many different markets. The tokens act to serve as a guarantee that market creators shall not create useless or malicious markets, which do not add value to the platform.
In any case, the funds are locked down by Augur’s smart contract system and released only after the predicted event in question takes place. The reporters (or event predictors) are the major users of the cryptocurrency. They use REP to stake on the outcome.
REP can also be applied towards disputing the outcome of future events and purchasing participation tokens. The tokens can be obtained by purchasing it from exchanges, such as Binance, Bittrex, Kraken, Poloniex, Bitsdaq, and Coinbase Pro. They can also be earned by reporting on a bet.
The best way to earn REP tokens is by disputing on an event and winning rewards by being correct.
Augur is one of the oldest predictive projects built on blockchain technology, and also, the first ones to be built on Ethereum. The platform takes decentralization to a whole new level for the prediction marketplace, which could also be employed in stock trading.
However, this does not mean that Augur is without competition. Gnosis is the biggest competition for the crypto tech, and both the projects are using similar technology to build almost identical products. The only difference between the two is their economic models. Gnosis collects fees in proportion to outstanding shares, while Augur fees are based on trading volume.