Gnosis: another decentralized prediciton market
Gnosis (GNO) is a decentralized prediction market, like Augur. Gnosis’ platform, which is backed by Consensys (a venture capitalist production group for Ethereum Dapps), is in the future intended to be a easy-to-use network for prediction markets to optimize other processes and possibly provide a platform for information sales at some point; thereby revolutionizing financial markets to allow predictions and trading of information on various stock fundamentals. Currently, the first application will be a “non-monetized prediction market based feedback application for securities research firms to get outside feedback on expected stock fundamentals.”
Gnosis also has hopes to evolve the insurance market into a more decentralized form, eliminating middle-men, redundant paperwork, and lowering costs, using smart contracts to dictate policies and having markets for uncertain outcomes of different events.
Their website also states that they have implemented smart contracts within their platform to employ Futarchy (market-based governance), and they have a mock up for a governance application. Also, interestingly, they have created a gamified application for a prediciton market about celebrity and media gossip; they state this is because it is “incredibly important to understand and cater to the needs of users outside of the crypto space.”
Gnosis believes that prediction markets can aid in price discoveries, which can be used in many situations, including artwork, house appraisals, etc. This can help ensure appropriate selling prices and profits. Overall, Gnosis’ team holds many different ideas which they wish to employ using their platform for prediction markets in different areas of industries.
Gnosis Token (GNO) Purpose
GNO, an ERC20 token, is bought using Ether (ETH), and there is cap limit of tokens (10 million total). WIZ, which is short for wisdom, is the token that is used in the Gnosis network, and also ERC20. WIZ is generated from GNO tokens, and as more WIZ is used on a platform, more WIZ tokens will be generated from a single GNO. Although, the number of WIZ generated for GNO would not decrease if activity within that platform decreases; it stays the same. You can lock you GNO down for a specified time, and in exchange receive WIZ through the WIZ emission contract. WIZ is used within the platform for trading fees, speculating on events, creating markets, subsidizing markets, and participating in those markets (for a fee). On Gnosis’ blog they state, “At a very basic level, GNO tokens function as fee credit (WIZ) generation machines.” They say that this allows the platform to function and be used for a fixed cost.
Gnosis also allows for other tokens to be used within markets to pay fees, for example if BTC is used within that market. When this happens, those BTC tokens, or whatever other tokens are used on the market to pay fees, are then regrouped into a third party contract and auctioned off as GNO.
The WIZ and GNO tokens can get pretty complicated, as they are integral to the platform functioning appropriately and the market’s stability. They also have wide ranges of uses, and the tokens fall into a model for the whole platform to run effectively. We suggest checking out Gnosis’ blog post about their tokens if you’d like to get deeper into whether or not they are a good investment and to understand their purpose and functionality. This is the best information we found about their tokens, and has a good infographic as well.
Gnosis’ webpage has lots of very helpful information about the different capabilities of the platforms they are building. They also have information about their progress and their roadmap for the coming future into 2018. If you want to read about the different concepts behind their platform and applications, then this is a great place to go.
Medium Official Blog
Gnosis’ official blog has information and updates about their platform. There are two very helpful articles on the Gnosis’ tokens located here.