Estimated reading time: 2 minutes, 25 seconds
Episode 15 of Blockchain Token – What is it? features Augur. In this series, we will cover the different types of blockchain platforms and cryptocurrencies on the market right now. We’ll give you a quick description of each blockchain/token, its function, who is their competition and where you can learn more.
Augur is a decentralized peer-to-peer prediction market platform built atop Ethereum’s blockchain.
Their platform allows you to be monetarily rewarded for accurately predicting events. This happens by trading shares for the predicted correct outcome of a real-world situation, such as an election. If you believe a candidate is going to win, you buy shares in that event happening. If that event does occur, proving you right, then the total monetary pool is distributed among all shareholders who predicted the outcome correctly.
Augur believes that this will lead to the platform being able to correctly forecast events based off of group sentiment that can be deduced from the data aggregated on the platform, which can be more accurate than an individuals prediction.
REP (which stands for reputation) is Augur’s token. It is an ERC20 token built on the Ethereum network. It is intended to be a tool for Augur’s prediction market to work appropriately. It is purposed as a reputation score for the individual using the platform.
Not everyone using the prediction market will hold REP, but if you do you are expected to accurately report randomly selected events every month or so. If you do not accurately report on these events or you lie about the outcome, then your REP is redistributed to accurate reporters during that same cycle. Therefore, reporters are rewarded in REP. So this means that you do not need to hold REP to be able to predict events, but rather REP holders are the reporters of the outcome of those events. Stable coins and Ether are used to place the bets on the prediction of events.
Augur is it’s own platform, but uses the Ethereum blockchain. You can use other crypto-tokens to place bets on the network, but Augur’s own currency, REP – an ERC20 token- is used as a reward and reputation tool.
Augur’s main competition is Gnosis, another prediction market platform, which you can learn more about here!
We have more info on Augur in our resource page, where you can find more in-depth written descriptions & links to a bunch of resources and Augur communities.
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