Augur – No Mining Required
Augur (REP) is a cryptocurrency platform developed by Jack Peterson and Joey Krug and released in 2015 via an initial coin offering (ICO) that raised $5.3 million worth of cryptocurrency. Crypto prices were much lower back then; 19,053 Bitcoins and 1.177 million Ether were raised which is a whopping $775 million today.
8.8 million coins were distributed to investors during the ICO and 2.2 million coins were kept by the developers. There are a total of 11 million coins in circulation and no more will ever be created. Moreover, this crypto-platform doesn’t require mining since it runs off the extremely secure Ethereum blockchain. The price per REP is over $30, yielding a market cap of $338 million which is in the top 100 out of the thousands of different cryptocurrencies. Combined with trading volume of several million dollars per day this indicates that Augur is popular, widely used, and important to know about if you are a cryptocurrency investor or trader.
Futures Betting for Crypto
The primary goal of Augur is to be a decentralized blockchain-based prediction market. On a prediction market users bet on future outcomes such as the price of oil, gold, Bitcoin, stocks etc., much like futures markets which are common on major financial exchanges. The difference between a futures market on Augur and a futures market on the New York Stock Exchange (NYSE) is that Augur uses decentralized technology that is cryptographically secured through the Ethereum blockchain.
Bets and contracts entered into on the Augur futures market can never be changed or deleted, whereas on a centralized platform like NYSE people in charge can change your entries after you win and not pay what you’re owed. NYSE also lacks cryptographic security compared to Augur; it can more easily be hacked which would result in loss of your funds. Augur also allows you to participate in futures markets while maintaining complete anonymity, while NYSE and all other centralized markets require your identification to participate.
Can Be Used for Sports Betting & Government Elections
Augur can also be used to place bets on government elections, sports games, and any other future event that has an unknown outcome. This makes the platform an ideal place for gambling. Coins are held in a cryptographically secure escrow until the bet is decided, and if you win, you instantly receive your prize. This is much less hassle than dealing with a centralized third party bookie, because with Augur you have peace of mind you will always be paid.
For each contest created on this crypto-based prediction market, shares are generated, and these shares can be traded between users. As the likelihood of future events changes, users can trade shares to improve their position. Additionally, anyone can create their own contest on the prediction market and earn a fee from all the people who participate in their contest
An Oracle is integrated into this platform, and this Oracle provides the real-world data needed to settle bets on the prediction market. If the Oracle is wrong due to being fed incorrect data, the Oracle’s answer can be challenged by staking a REP dispute bond. Users stake their coins on the outcome they think is correct. The choice that gets the most coins staked on it wins, and all the people who sided with the winning choice get 50% profit on the coins they staked. This system helps ensure that the prediction market bets are resolved by accurate data.
Considering the widespread use of Augur combined with its innovative prediction market technology, it is likely that the price of REP, which is intimately tied with Augur network activity, will rise in the long term. It might be a profitable decision to keep some REP in your cryptocurrency portfolio. And, if you are a cryptocurrency enthusiast with a knack for future predictions, you should look into this platform to make extra money.
This is not advice. Advice should be accepted by your chosen legal counsel only and financial advice should come from a licensed or certified financial professional. As always – do your homework and make decisions based on your own education. Seek information and look into projects before adding to or diversifying your portfolios.