Augur is a decentralized prediction market platform built on Ethereum blockchain technology. Users can make predictions and place bets using digital currencies, leveraging the wisdom of the crowd to forecast outcomes of events. This effectively eliminates counterparty risk and central server risks while creating a global market using cryptocurrencies like Bitcoin.
Augur is a decentralized prediction market platform built on the Ethereum platform. With Augur, anyone can create a prediction market for any topic theyre interested in (like who will win the US presidential election) and provide initial liquidity through a decentralized process.
In return, the creator of the market earns half of all trading fees generated by the market. Regular users can predict and buy or sell shares in the outcome of events, such as the U.S. presidential election, based on their information and judgment. When an event occurs, if you predicted correctly and hold the correct outcome shares, you receive $1 per share, making your profit $1 minus the original purchase cost. If you predicted incorrectly and hold the wrong outcome shares, you receive no reward, resulting in a loss equal to the original purchase cost.
Several factors distinguish Augur from traditional prediction markets, but the most significant difference is that Augur is global and decentralized. Anyone from anywhere in the world can use Augur, which brings unprecedented liquidity, volume, and a diverse range of perspectives and topics not found in traditional exchanges.
Project Highlights
The existing decentralized network gives Augur unique advantages over other prediction markets.
1. No Central Server
Augur is a decentralized platform built on the Ethereum blockchain – this means there is no central server that can be shut down.
2. Create Your Own Market
With Augur, anyone, anywhere in the world can quickly and easily create a prediction market asking about anything. As a market creator, you provide some initial funding for the market and, in return, earn half of all trading fees collected during the markets lifetime.
3. Low Fees
Augurs fees are set by users and are much lower compared to traditional trading and betting platforms.
4. Crowd-Sourced Reporting
In centralized markets, one person decides the final market outcome – this means theres potential for errors or outright manipulation. With Augur, we use a unique consensus-based system and a unique token called REP to report thousands of market outcomes. As a reporter, you report events every two months and, in return, receive half of all fees in the system multiplied by the percentage of REP tokens you own.
5. Secure Automated Payments
All funds are stored in smart contracts – eliminating counterparty risk and allowing for fast, automated payments to winning traders. Using the blockchain, deposits and withdrawals are also fully automated. There is no need for human intervention, eliminating the possibility of human error.
Use Cases
Augur is a prediction market platform that rewards you for accurately predicting real-world future events.
1. Predict the Outcome of Real-World Events
If you think Hillary Clinton will be elected president, the Yankees will win the World Series, or Leonardo DiCaprio will win another Oscar, youll buy shares in those outcomes.
2. Earn Real Money Trading Profits
In any case, the combined stock prices you trade total one dollar – so, for instance, if you occasionally buy shares, it might cost you 50 cents. If youre ultimately correct, you receive one dollar for each share purchased. If youre wrong, you lose the funds used to purchase the shares. Like any market, share prices fluctuate over time. As more people buy shares, the price of that outcome rises, while the price of other outcomes falls. This provides further opportunities for profit – buying low and selling high before the markets final outcome is known.
Additional Resources:
Understanding the Economics of the Augur Market
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