Cryptocurrencies are digital currencies that are decentralized, meaning they aren’t controlled by any central body the same way traditional financial systems are. Cryptocurrencies can be used for transactions across the globe, and they have gained wide recognition in 2017.
Augur is an open source decentralized platform that predicts prices of cryptos. The platform was built on Ethereum’s blockchain. The augur protocol is several smart contracts that are built on the Ethereum blockchain.
So what is Augur?
The platform was founded by Jack Peterson and Joey Krug back in 2014.
- It is a decentralized prediction market which forecasts the outcome of an event using the wisdom of the crowd principle.
- The platform uses the information collected from the crowd to work out a realistic possibility and what the probable outcome of that event will be. The network rewards correct predictions while incorrect ones are penalized.
Aims of Augur?
- The main objective of the Augur market is to revolutionize the prediction markets.
- This will, in turn, change the way people receive and verify what they term as the truth.
- The primary aim of the platform is to make predictions that are more accurate using a large number of people rather than the small team of experts used by other prediction companies.
- Its decentralization has ensured that the platform cannot be regulated by any governments that view the prediction industry as gambling while also ensuring that their application is sustainable.
How did it start?
- The augur project began in October 2014, with the team releasing their alpha prototype shortly after that.
- The team uploaded their first contract on Ethereum’s network on the 15th of April 2015. The team released their alpha version for the general public to test in June that same year.
- The platform announced after that that 8.8 million reputation tokens will be distributed to their investors within 4-5 days, which started from August 17, 2015, with the prediction platform raising $5.2 million before the crowdsale was closed on the 1st of October 2015.
- The Augur project development team released the beta version of their application in March 2016.
How it works.
- The Augur project was built on its tradable tokens called Reputation (REP). At the time of launching it, the total number of Augur coins was set at 11 million.
- The augur coins allowed users to report or predict the outcome of an event.
- Can Augur be mined? No, it can’t. Augur cryptocurrency can only be won by those who provide a truthful report. Since Augur mining isn’t possible, the team also rewards those who submit correct predictions with a portion of the winnings while those who reported untruthfully will lose some of their REP tokens.
- The Augur coins are lost\won depending on the reliability of the users who voted on a certain event.
- The Augur team added that the platform is only for those who wish to report the outcome of events, not just for those who wish to bet on those outcomes.
What are those predictions used for?
- Users can set up events in any field and purchase Augur cryptos for the possible outcome of the created event. The platform accepts both Ether and BTC.
- Augur’s algorithm will proceed to work with information gathered from the crowd regarding that event provide top predictions based on that information.
- After the event has been concluded, the funds gathered from the event would be distributed to those who predicted correctly.
Pros of Augur.
- You can be rewarded with Augur coin for predicting correct outcome of an event even without betting on it.
- It is a decentralized platform. Thus it can’t be censored by any government.
- It accepts both bitcoin and ethereum as forms of payment.
- It is all based on your prediction.
- It has limited payment methods.
What is the difference between Bitcoin and Augur?
- Augur was built on Ethereum’s blockchain while Bitcoin has its blockchain.
- Augur coins are used for predictions while BTC is used in several sectors of the economy.
- The total number of Augur coins was set at 11 million while the total number of BTC is 21 million.
- At the moment, bitcoin is more valuable than Augur.
- Augur’s price action over the last two years has been nothing but phenomenal.
- The cryptocurrency was trading at roughly $1.5 in October 2015.
- By January 2016, the price has appreciated and was trading at $2.58 per coin.
- It went up to around $10 in March before plunging down to roughly $6 in May.
- The currency experienced mixed price action over the next few months, trading at roughly $4 in January 2017.
- The price started appreciating and was trading above the $16 mark in May last year before recording an all-time high above $100 a few weeks ago.
- The currency is now trading at $75 per coin and has a market value of $820 million.
What Is Augur Mining?
- Can augur be mined? not exactly. Augur mining is different from mining bitcoin, ethereum and the other. The mining process involves you successfully predicting the outcome of an event.
- If you get your predictions right, Augur will reward you with their REP tokens. Instead of complex mathematical puzzles that are used to mine other cryptos, all you need is to predict events right, and you will be rewarded for the effort.
- Miners are awarded Augur coins depending on the number of funds put into a particular event. Thus, the higher the funds put into an event, the higher the amount to be won by those who provided a correct prediction.
- The appeal period for miners is 24 hours. During that period, the platform runs the reported data through analysis determine the consensus for every expired market.
- Each coin gives the miner 1/22-millionth of all market trading fees in exchange for faithful reporting on market outcomes.
A wallet can be a software, hardware or a website where we can store our cryptocurrency reserve to protect them from theft. The cryptocurrency reserve in our wallet can be used for transactions whenever the need arises.
Augur coins can be stored in some wallets. Since it is developed on Ether, it can be stored on wallets that support ether. Let us take a look at some.
This is a web-based Ethereum wallet that allows users to store their ethereum and augur reserve.
- The first step is to create a wallet on the platform. Visit the website, enter a strong password and generate a wallet.
- You will be given a private key which you should store. Save your wallet address or QR code.
- You can send your augur from augur’s platforms.
- The wallet is very secure.
- You can store both augur coins and ethereum in your wallet.
- You can make payments offline.
- The platform can be hacked, and you will lose your augur reserve.
Augur original full node wallet
- To use this wallet, you will start by downloading the app. The app is usually automatically configured to talk to a local node when present.
- The RPC commands are used to send or receive augur or ethereum in this wallet.
- The app comes automatically configured.
- It can be used to receive and send augur and ethereum.
This is a hardware wallet that allows you to store you cryptocurrency reserve offline.
- It comes in the form of a flash drive and can be used to store REP or ether offline.
- Users can activate the device by logging in with their password. Transactions can be made after logging in.
- It is very secure as it isn’t prone to hack.
- You are the only one who has access to your private keys.
- It is very expensive,
- The device can be stolen, leading you to lose your crypto reserve.
Ledger Nano S
This is one of the most highly rated wallets currently available.
- It is a hardware wallet that is specifically designed for beginners.
- The wallet comes with a small OLED screen that allows you to control your transactions easily.
- You will be required to have a -digit pin on the physical wallet itself.
- It is very secure as it has device password and private keys.
- It has a simple user interface, perfect for beginners.
- The small OLED screen makes it easier to conduct transactions.
- It is a bit expensive.
- The device can be stolen, leading you to lose your crypto reserve
Augur coins are a different type from the usual cryptocurrencies we are accustomed to. The platform is looking to change the entire prediction industry, with a huge potential to set new price records this year.
The crypto space is an exciting one, and we welcome you to it. You can check our website for more informative articles.