Augur Cryptocurrency: A Guide To Investing And Trading

Augur (REP) is a decentralised prediction market platform built on the Ethereum blockchain. It uses the concept of swarm intelligence or the wisdom of the crowd to predict future outcomes. Users can create prediction markets on any topic, and bet on the outcomes of events such as company performance, election results, or natural phenomena. Augur's decentralised nature means that it doesn't rely on a central authority to oversee transactions or settle disputes, and it utilises blockchain technology to automate payouts and ensure transparency, fairness, and security. The platform uses two cryptocurrencies: Ethereum and Augur's native token, REP. This token is used by reporters on the platform to clarify disputes or outcomes of the prediction market. Reporters stake their REP tokens on a possible outcome, and if their prediction is correct, they receive a payout.

Augur's unique value proposition

Augur is a unique value proposition in the cryptocurrency space. Here are some key features that set it apart:

Decentralized Prediction Market

Augur is a decentralized prediction market platform built on the Ethereum blockchain. This means that it is not controlled by any central authority, and users can create their own prediction markets on any topic. This is a significant shift from traditional, centralized prediction markets, offering an impartial and trusted platform.

User-Created Markets

Augur allows users to create their own prediction markets, providing a wide range of options beyond what traditional platforms offer. These markets can be on any topic, from company performance and election results to natural phenomena. This flexibility and diversity of markets are a key advantage.

Harnessing the Wisdom of the Crowd

Augur is designed to harness the wisdom of the crowd through its prediction markets. By allowing users to buy shares and stake their tokens on predicted outcomes, Augur leverages the collective intelligence of its users. This approach can provide more accurate and unbiased predictions than traditional forecasting methods.

Open and Fair System

The platform operates in a trustless environment, meaning it does not rely on a central authority to oversee transactions or settle disputes. Instead, it uses smart contracts and blockchain technology to ensure transparency, fairness, and security for all users. This decentralized governance model ensures that the platform remains impartial and aligned with the interests of its users.

Incentivizing Accurate Reporting

Augur utilizes the Reputation token (REP) to incentivize accurate reporting of event outcomes. Reporters stake their REP tokens on possible outcomes, and the consensus of these reporters is considered the truth. This complex incentive structure rewards accurate reporting and penalizes incorrect or passive reporting, ensuring the integrity of the prediction market system.

Lower Fees and Global Accessibility

By using blockchain technology, Augur offers lower fees compared to traditional betting platforms. Additionally, it provides global accessibility without geographical restrictions, allowing users worldwide to participate in prediction markets.

In summary, Augur's unique value proposition lies in its decentralized, user-created prediction markets, which harness the wisdom of the crowd. The platform's open and fair system, incentivization of accurate reporting, and lower fees make it a compelling option in the cryptocurrency space.

How to buy Augur

Augur (REP) is a decentralised platform that allows users to speculate on the outcomes of various events, from company performance to election results, sports outcomes, and natural phenomena. It is built on the Ethereum blockchain and operates as a peer-to-peer network, enabling universal and transparent access to its markets.

To buy Augur, you can refer to the following steps:

• Set up an account on a cryptocurrency exchange that supports REP tokens. Examples of such exchanges include BingX, Gate.io, Kraken, Bibox, and HitBTC. You may also use the Coinbase wallet, which supports the purchase of Augur.
• Fund your account: Once you have created an account on your chosen exchange, you will need to deposit funds into it. This can be done by linking a payment method such as a bank account or credit/debit card.
• Place a buy order for REP: After funding your account, you can place a buy order for Augur (REP). Simply select the amount of REP you want to purchase and place your order. You may also be able to set a price at which you want to buy REP, and the exchange will automatically fulfil your order when the market price reaches your specified price.
• Withdraw your REP to a wallet (optional): If you prefer to hold your REP in a personal crypto wallet, you can withdraw your tokens from the exchange to your chosen wallet. This adds an extra layer of security and gives you direct control over your tokens.

It is important to note that Augur is not supported in all regions. Currently, it is not available in the United States, the United Kingdom, Belarus, Cuba, Iran, Iraq, Côte d'Ivoire, Liberia, North Korea, Sudan, Syria, or Zimbabwe.

Additionally, as with any cryptocurrency investment, it is crucial to conduct thorough research and understand the risks and mechanics involved before purchasing Augur or any other digital asset.

Augur's security model

Augur incorporates predictive threat intelligence and machine learning technologies to further enhance its security. These advanced tools are designed to proactively identify and mitigate potential security threats. By analyzing patterns and predicting possible attacks, Augur can address vulnerabilities before they are exploited.

The platform also employs TCP/IP side channels as part of its security strategy. This involves monitoring network traffic to detect unusual or suspicious activity that could indicate a security threat. Augur can quickly respond to and block potential attacks by keeping a vigilant eye on these channels.

Additionally, Augur leverages the power of its user community with the Augur Bug Bounty Program. This program offers rewards of up to $25,000 USD for reporting bugs, with bounty payment amounts decided based on the severity of the issue. This incentivizes security engineers and hackers to actively look for and report vulnerabilities, further bolstering the platform's security.

The security of Augur also stems from its decentralized nature. The platform is designed to be user-governed, with Ethereum-based Reputation token (REP) holders having ownership and operational control. This decentralized governance model means that decisions about market creation and outcome resolution are made collectively by the users, rather than a central authority. This distributed decision-making process makes it harder for malicious actors to manipulate the system.

Augur's competitors

Kalshi is a federally regulated online trading platform that allows users to trade on the outcome of events, similar to Augur's prediction market platform. PredictIt is a real-money political prediction market, a stock market for politics. It is a project of Victoria University in Wellington. Consensus Point is a global provider of prediction market research, analytics, and software, utilising a prediction algorithm and a gamified user interface. Intrade, founded in 2001, is another prediction market platform that offers informed predictions on a wide array of topics and events.

Smarkets, founded in 2008, is a sports betting company that offers a betting exchange platform for major sports and politics. Gnosis, founded in 2015, focuses on payments infrastructure and decentralised financial tools within the blockchain sector. It offers an EVM-compatible layer 1 network, Gnosis Chain, and a suite of financial applications. Polymarket, founded in 2017, is a betting platform that enables speculative betting on highly debated topics such as COVID and politics.

These competitors offer similar functionalities and features as Augur, providing alternatives for users in the prediction market and trading space.

Augur's history

Augur is a decentralized prediction market platform built on the Ethereum blockchain. It was developed by the Forecast Foundation, which was founded in 2014 by Jack Peterson, Joey Krug, and Jeremy Gardner. The Forecast Foundation is advised by Ron Bernstein, founder of the now-defunct company Intrade, and Ethereum founder Vitalik Buterin.

Augur allows users to create prediction markets on any topic. There are two types of markets: categorical markets, which have up to seven options, and scalar markets, which offer a spectrum of numerical outcomes. "Invalid" is one of the outcomes in all markets, intended to prevent scam markets and ensure unambiguous resolutions.

The project launched in July 2018 after a crowdfunding campaign in August 2015. Soon after the launch, users created death pools, or assassination markets, on famous people. Augur's user numbers dropped off sharply after the launch, falling from 265 daily users in early July to 37 on 8 August 2018.

In July 2018, the Commodity Futures Trading Commission noted that Augur contracts resembled binary options, which would fall under its jurisdiction. However, Augur's decentralized design may allow it to sidestep regulatory difficulties as it is just a protocol that allows users to set up their own prediction markets.

In July 2020, Augur v2 was released with significant changes, including the use of DAI, a stablecoin pegged to the US dollar, for trading, and a more user-friendly interface. Forbes described Augur v2 as "a significant leap forward in the world of decentralized applications."

Frequently asked questions