Augur was one of the first Dapps to ever launch on the Ethereum platform, it is a decentralized oracle and prediction market protocol. What does that mean? It allows you to speculate and bet on anything with absolutely zero limits. Launched in 2015, Augur is an alternative to centralized betting platforms that traditionally have existed to allow the placing of bets on sporting events. Augur enables the betting on any event that can have more than one outcome: cryptocurrency price predictions, the outcome of political votes, sports and more. The first version was quite clunkly, it also always required betting in ETH which is volatile. Augur v2 is much more modern, a sleek UI that allows betting in stablecoins such as DAI.
What is Augur?
Augur and REP token are powered by smart contracts that live on chain. This means that Augur is a decentralized betting platform that is accessible to anyone and operates peer to peer. Any user can create a new prediction event on anything they wish: as long as they specify start and end times, a designated reporter and a source for the resolution. Unlike a centralized betting platform where funds could be frozen or payouts could be stopped, Augur is decentralized and the main team behind its creation (known as the Forecast Foundation) does not have access to anyone’s funds and cannot interfere with the predictions in any way. Essentially the protocol manages itself via the use of REP tokens and the development team simply focusing on making improvements.
Future of Augur and REP?
REP tokens are used to implement what is known as the Wisdom of the Crowd principle which states that predictions will be more accurate if they are crowdsourced and incentivized. REP is short for Reputation token, provides a crypto-economic incentive for governing the protocol. Holding REP gives you voting power to resolve any disputes over market predictions. REP holders can receive a portion of the betting market’s fees by staking their REP on the correct outcomes to settle disputes.