What is Augur?
Augur is a decentralized technology that aims to motivate a global network of computers to sustain an Ethereum-based prediction market site (ETH).
Instead of selling money, consumers wager on the result of events in a prediction market, which is similar to an auction. Augur allows consumers to build and trade “shares” that reflect a portion of the valuation of results without having to rely on a firm to create or manage certain markets.
The machine keeps an order list for any market it creates, and there are no restrictions about what activities should be traded, so markets may be generated to help forecast anything from election returns to weather.
Users are awarded with REP, the crypto asset that drives the Augur network, if and when they correctly forecast outcomes.
REP may be used to start a prediction market, challenge a known result’s outcome, or buy participation tokens. Users may also get REP by buying it on exchanges, reporting on a bet’s results, or being on the right side of a result dispute.
How does Augur Work?
Augur is a platform that enables you to develop, control, and share prediction markets. Speculators will gamble on predicted events on prediction markets.
They aim to tap into the “wisdom of the crowd,” acting as a mechanism that gathers as much knowledge as possible about a certain occurrence in order to determine how probable it is to occur.
Crowd wisdom is a surprisingly powerful way to render forecasts and projections. By rewarding accurate bets, prediction markets encourage investors to add their expertise to the global pool of intelligence.
The majority of prediction markets are focused on single, binary outcomes.
The price of the “yes” and “no” securities still add up to one in binary markets like this, determining the payoff until the deal is actually concluded. Following the case, there is a week-long settling time after which selling will resume and speculators can continue to sell or liquidate their bets.
Speculators will swap in and out of their roles when time passes and accidents arise, affecting the valuation of the shares and the relevant payouts as the occurrence occurs. The relative size of long and short positions will be used to estimate what the market thinks the event’s likelihood is.
What is the History of Augur?
Aug was created by the Forecast Foundation, a group of developers and researchers that includes Joey Krug.
As Augur began selling its tokens in an ICO in which the Forecast Foundation raised $5 million, in August of last year, it was the first in its class to go public.
Soon it launched in 2018, and in the first month more than 800 bets were made on the network got a payout of $1.53 million.
How do I hold REP?
REP is an ERC20 token. You can hold it on any common Ethereum wallet, such as Metamask or MyEtherWallet.