I don't know if you own Augur (REP token), but in 24 hours (July 13/14), the crypto skyrocketed by more than 30%. In a rather bearish market, this not only boosts the value of this crypto but also our investor morale. Once again, the price increase is explained by an update. Version 2 of Augur has been released and this certainly explains this sudden increase.
We are therefore going to take the opportunity today to give you a brief portrait of this little-known crypto, in my opinion.
That said, this is unique to the betting and prediction space. So it's perfectly normal that you haven't heard of Augur if it's not "your cup of tea", to use a phrase I like to use from time to time.
Project display Augur
Augur was developed by the "Forecast" foundation, created in 2014 by developer Jack Peterson and computer scientist Joey Krug to name just the best known members of the team.
As early as 2015, Augur raised funds via a ICO and they managed to raise $5,5 million for 8,8 million REP tokens distributed.
It was not until 2018 that the platform had $1,53 million wagered by users on more than 800 outcome bets.
Augur…Just with this name, we are already supposed to know what we are talking about. Think of the expression “bird of good/bad omen”. Yes, even in English, it works! Augur is indeed a prediction software, built and adapted to the Ethereum (ETH) network. Predictions and the domain of oracles as with chainlink for example are widely used in blockchain, in fact.
Augur therefore makes it possible to create prediction markets. All users can then create their own prediction market by investing tokens. If the prediction turns out to be correct, the creator is rewarded.
If this is not yet very clear, think about the platforms of Sport bettings in the idea of prediction. Frankly, it's very similar in principle. The big difference is that it happens on the blockchain. What is interesting with Augur is that you can bet on anything and everything, without waiting for validation from an intermediary. Yes, we can make predictions about the weather or the results of a football match, for example.
The software records bets for each market with no limits on events and bets.
How does Augur work?
It's the same as with other bets, when you make a bet and the result is not consistent, then you lose your capital. In case they predict the results, then, they earn REP, the token that powers the Augur network.
Now let’s talk about the REP token. It can then be used to create a prediction market, to contest a result or to buy participation tokens. You can also buy REP on exchange platforms.
Besides, it is not necessary to have REP to bet on the platform. Likewise, as REP is built on Ethereum, it can be purchased in exchange for ETH. That said, it is also possible to bet with a stablecoin, DAI in this case.
The Augur platform uses Ethereum smart contracts and this guarantees that results are correctly reported and that payments are made.
How to use the platform?
The platform has been well thought out and to facilitate the entire experience for the user who wants to bet, there are 4 clear steps to follow.
- Market creation : Each person can create a new betting market based on real life events. Those who create the market will then define the source of the resolution (where the final result will be given) and the fees (the percentage of users' winnings) that users will receive.
- Trading on the market : Users will buy shares in the result whose price will fluctuate depending on the amounts of bets that are placed.
- Reports : The final results of each event are then determined by the Oracle of Augur.
- Final settlement: Users close their positions and collect payouts based on their predictions.
How does the REP token earn its value?
In fact, Augur's REP token derives its value from its ability to execute the smart contracts of the Augur network as a whole. Thus, the REP is integrated into the network and this currency therefore serves as the keystone of the entire network, as you will have understood.
To report the final results and to earn a portion of the collected platform fees, Augur nodes must then commit REP tokens to a specific contract.
It is the consensus decision of all nodes that is then considered to be the "truth" by the Augur oracle. In the event that a node reports a result that turns out to be different from the consensus, then the REP that is staked is then confiscated by the entire network and redistributed to the nodes that have remained honest.
This type of “punishment” helps limit fraud attempts and makes Augur ever more reliable.
That's a summary of what Augur is and the usefulness of the REP token. The market for prediction and betting on the blockchain continues to grow and Augur remains the leader due to its seniority (especially).
The other competitor of Augur which shows all its relevance is certainly the project Gnosis, which at least technically joins Augur.
☞ Discover Augur
Disclaimer: This is not investment advice. This is general information. Do your personal research before investing.
Our affiliate links and blog partners:
To buy cryptocurrencies (simple way):
To generate interest on your cryptocurrencies:
To secure your cryptocurrencies:
To have fun and play
