Betting platforms have offered a means for personal prediction and speculation over time. In fact, gambling has been with the man for many centuries as an act of placing a wager on the eventual outcome of an event. The Augur blockchain betting platform has offered a transformation, and it is working to change the betting world.
Augur is a decentralized prediction market platform that is built on Ethereum, a blockchain platform. It was launched on the 9th of July 2018. The ICO of the platform was introduced in September 2015, the beta version of the dapp was created in 2016, before the final Launch in July 2018.
How it Works
Betting on the platform is made easy and straightforward with some unique features. What do you think you feel like betting on? An event? Sport? Game? And so much more. The unregulated and decentralized feature makes it open to bet on nearly anything.
Augur works with two primary roles for the users to take which are; Creating markets and Trading event shares.
Creation of market merely is the offer for users to predict events and the forecasting of anything the market creator can think of —ranging from politics, weather, finance, entertainment and sports. You can predict the election of a country or the economic situation as you may consider it to be. These predictions need to be made with a small amount of Ethereum (ETH) tokens and set the taker fee and the maker fee cost to buy and sell shares on the book between (1.0% and 12.5%). The maker fee cannot be more than half of the taker fee; these fees are received when the market is closed.
The creator fee is taken from the traders with a winning position. The settlement fee is usually created low to enable people to bid using the market, but it must still cover the initial Ethereum cost.
The trading event role is buying or selling shares on the odd that an event of which the market is opened will take place.
There are two ways to make money on the platform. By leveraging the market fluctuation, or by buying position at a low cost and selling it at a higher sentiment, as world events are prone to change. The other is earning money by predicting an event correctly and hold the shares when the market closes. The amount of your Payout equals Number of shares * Price / Number of ticks. There is a need to pay a settlement fee that includes the creator fee and the report fee set by the creator. The higher your win is, the higher the settlement fee.
Through the market creation and trading event share, you can turn political knowledge into predictive power by trading on the outcome of upcoming elections, potential policy decisions, and other political events. You can also hedge against catastrophic events like natural disasters, market crashes, and geopolitical upheaval by betting that the event will or will not occur. It’s truly open to anything; one of the interesting controversies with Augur right now.
Every user of the platform can create their forecast on anything they wish and make betting as well as sell shares depending on the outcome of any world event.
REP (Reputation) Tokens
Reputation Token is the cryptocurrency of Augur platform built on the Ethereum blockchain platform, making REP and ERC20 token. There are 11,000,000 REPs in circulation presently. To report the outcome of events for the different markets, REP tokens are staked.
The REP is ranked #36 on CoinMarketCap and has a market cap of $310,553,107 and has a value of USD 28.23 at the time of writing. REP is used to create the “reputation” (thus the name) of event reporters, because it is the people that will need to confirm how a bet ends up.
Where To Buy and Store REP
We recommend buying REP on Binance if you’re interested.
REP can be stored with software wallets, Jaxx and Exodus and also stored with hardware wallet, Ledger Nano S and Trezor.
The team is being headed by Jack Peterson and Joey Krug that lead the 13-person squad. They are well experienced working with blockchain technology and previously created Sidecoin, a Bitcoin fork. And also has Vitalik Buterin, the creator of Ethereum is an advisor to Augur.
Augur comes with multiple benefits, one of which are, it is owned and controlled by the community of users through forecasts, predictions, and betting, through the decentralized feature as shares could be sold on projections. However, the tendency to bet on anything on the platform has placed it on the test of handling bets that are morally questionable on the platform. It is opened to this because of the decentralized feature that is not available on the centralized betting platform. So also is the scalability of Ethereum from a large volume of users and transaction per minute capacity.
To see our first guide to the Augur platform (before it launched), follow this link.