Cryptocurrency Augur (REP) – what is it and why it’s needed in simple words?
The Augur Cryptocurrency (REP) is an Ethereum-based decentralized platform whose primary purpose is to shape prediction markets. The fundamental concept of this platform is the ability to bet on real-life events using exclusively digital assets with the REP ticker or the so-called reputation tokens. Therefore, the absence of fiat money in the system ensures the “invisibility” of the transactions performed by obstructing outsiders and opposing state control.
In other words, what is Augur? This is a virtual platform where some users can announce a personal point of view while others can get acquainted with a group opinion regarding a particular event. At the same time, each user can act as an investor by buying shares that, in their view, relate to the most likely outcome. If their guess is correct at the end of the event, the purchased shares can bring a solid win. In monetary terms, a claim is equal to $1, and in the case of a flat coefficient, its price is 50 cents. The reward is $1 per share purchased on a successful bid, while money is burned on a wrong pick.
Augur can be considered a progressive project in gambling since such a blockchain-based betting system is more profitable for users due to a small margin compared to traditional bookmakers. We also suggest considering the conversion aed to gbp in the fixed link.
Distinctive features of Augur
When answering the question of what Augur is, it is essential to be aware of two guiding ideas behind the platform:
- Prediction market, where any selected event can have two outcomes;
- The theory of the crowd’s wisdom implies a higher predictive potential of an opinion formed in an environment of a large number of people than an isolated individual’s forecast.
Based on the last fundamental concept, the Augur platform is characterized by a specific feature expressing the probability of a particular outcome in fractions (for example, 53% of the likelihood equates to 53 cents). Also, an important distinguishing feature of the application under consideration is the receipt by the user of a particular reward from the total fees of the entire system, the amount determined by the number of tokens in the account. Along with this, it should be noted that the user receives the required reward in REP cryptocurrency tokens, while bets are made in a real-life monetary currency such as buy rep.
How Augur Works
Every person has passion. This is probably why betting has always been popular. If earlier for this, it was necessary to attend equestrian or sports competitions in person, today, everyone can try their luck and check analytical thinking and intuition online. There are many sites explicitly designed for betting. For example, the popular Betfair resource is optimized for sports betting. What is unique about Augur?
Augur is a platform created to predict a specific event. Now it is in demand, as the “wisdom of the crowd” is more accurate than marketing research. Therefore, the platform is actively used to forecast economic, sports, financial, political, cultural, and other events. Augur differs from all similar services in much greater functionality, decentralization, and mandatory payments to all users whose forecast was successful. You can place bets on any event privately, earning income without revealing your identity.
The principle of the platform is based on the Ethereum blockchain. And this has a lot of advantages since it is almost impossible to disable the service or take it under control because it does not have main servers and control centers. Anyone can become a client; for this, you need to go to the company’s official website, select a forecast from the active list and place a bet. If you have not found the event you are interested in, you can create forecasts on your own and put the first bets. Thus, the platform allows everyone to determine the public’s opinion regarding any event and prognosis. This fact has long been appreciated not only by large companies but also by ordinary users.
