The blockchain technology is advancing very fast. It is now in the second phase. The first phase involved the introduction of blockchain technology. After Bitcoin was introduced in 2008, other blockchain platforms started entering the market. Today, about 10 years after, there are more than 1000 cryptocurrencies in the market.
The second phase of the blockchain technology involves identifying and addressing key gaps, flaws, and extending the utilities of blockchain technologies. At this point, new cryptocurrencies are being formed with the main objective of filling the existing gaps. Some are specific such as Reddcoin that targets the social media while others are general. One of these new cryptos is Augur. Here is a complete review of this unique crypto to establish the goals of its formation, how it works, and key features.
What is Augur?
Augur is a decentralized, open source platform for market predictions. It is a trustless and completely decentralized platform that operates as an extension of the Ethereum core code. This means that it preserves the proven Bitcoin code and security as much as possible. The platform was founded by Joey Krug and Jack Peterson and launched in 2015.
The main goal of the Augur is to provide a complete blueprint of decentralized market predictions by utilizing the Bitcoin-style transaction (input/output). Historically, market prediction required accepting wagers and crafting outcomes in a highly centralized model. However, it remained unclear who this centralized entity was and why a lot of trust was vested there. This opened routes for direct manipulation and unpredictability.
Augur can be used as a distributed oracle model that allows smart contracts to put forward questions to discover more details about the real world. This means that no single entity or organization holds the answer to make a direct market prediction.
How Augur Works?
Augur combines market prediction with power brought by decentralized networks to yield a highly accurate forecasting tool. It is the chance to make cash trading profits. Now, Augur lifts the lid because market prediction is not limited to stock trading in capital markets. You can buy and sell shares by predicting different events including political contests such as the recent US presidential elections, Brexit, and events such as soccer.
The first step of using Augur is acquiring their user client and installing in your system. Augur prediction markets give highly accurate predictive data for users to make profits. For example, every share in the market today is an estimate of the actual probability of what is taking place in the real world. It is because of this that the idea of prediction markets is based on the wisdom of the crowd.
Once you have picked a market, the prediction will be made on the wisdom of the entire group. The market aggregates their collective wisdom that brings deep analysis, expert opinions, and talents held by members in the Augur platform. Though the process of buying and selling shares is based on personal opinion and knowledge of every member, equilibrium is ultimately reached to reflect the group’s option.
The prediction mark is highly accurate in forecasting the future compared to experts, surveys, and even opinion polls. Augur provides highly active predictive data that can be traded with fiat currency. This incentivizes all participants to give their take on what they expect to happen.
Main features of Augur
Augur reputation (REP)
Augur reputation is the token behind the blockchain. It is considered a score for individual participants to help users operate in Augur. Reputation tokens are limited with a fixed supply of 11,000,000. If you hold REP, the system requires you to report correctly on various events in its system. If you do not report accurately, the REPs are taken away and redistributed to the accurate reports.
Once you join Augur, the computer plugs you directly into the peer-to-peer network. You can start participating by hitting the preferred group that brings a list of active prediction markets. The topics are all created by users and can be refined based on the members of the block. Remember that you cannot tell the identity or address of the members because all the transactions are fully encrypted.
Augur smart contracts
A smart contract helps people to exchange property, money, shares or anything of value in a conflict-free and transparent way. Though Augur uses the Ethereum based smart contracts, its team had to address parasitic attacks on Ethereum network and come up with a solution. Augur incorporated Merkle proofs to make all the Ethereum based oracles fully resistant to parasitic attacks.
Pros of using Augur
- The Cryptocurrency allows users to apply market prediction in any field. Though the common prediction revolves around shares, you can make predictions in any field of specialization such as soccer, politics, and market directions.
- Augur allows users to create their markets. Once you join Augur, it opens a whole world by simply asking a question about anything. As a market, you have to provide some of the initial funding and enjoy 50% of the collected fees in the market lifetime.
- The fees of participating in augur are among the lowest in the market.
- The platform uses a safe and automated payment system. Because all funds are stored in smart contracts, the counterparty risks are eliminated to guarantee faster and automated payments for winning traders. Besides, depositing funds and withdrawing money is also automated using the blockchain.
Cons of using Augur
- Augur rides on Ethereum platform to implement most of its systems. This means that it is not fully independent when compared to other platforms such as Bitcoin and IOTA.
- Augur is relatively new, and most of its features are still being developed. This means that most of its systems need more time to determine their stability.
Where to Buy and Sell Augur in Australia?
Crypto Currency for Fun recommends buying Augur at CoinSpot. CoinSpot is a multi cryptocurrency wallet with built-in trading features. Users can store many coins, including Augur and they offer Instant Delivery or your coins right into your account.
Augur has demonstrated that blockchain technology can be applied almost in any field. The unique market prediction model has made more people start embracing the technology in daily lives. It has also demonstrated great potential because of high precision in the market predictions. The fact that you can create own market and enjoy the benefits in a lifetime has yielded a lot of interest in Augur. It is one of the cryptos to watch in the coming years.