What is Augur (REP) in simple terms

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2019-09-02 00:00:00:

Augur (REP) cryptocurrency is a decentralized Ethereum-based platform whose main purpose is to shape prediction markets. The fundamental concept of this platform is the ability to place bets on any real-life events using exclusively digital assets with the REP ticker or the so-called reputation tokens . Consequently, the absence of fiat money in the system ensures that transactions are invisible to obstructing outsiders and opposing government controls.

In other words, what is Augur? This is a virtual platform where some users can announce their personal point of view, while others can get a group opinion on a particular event. At the same time, each user can act as an investor by buying stocks that, in their opinion, are the most likely outcome. If their forecast is correct, at the end of the event, the acquired shares can bring substantial gains. In monetary terms, a share is equal to 1 dollar, and in the case of a uniform ratio, its price is 50 cents. That is, the reward is $ 1 for each purchased share on a successful bid, whereas on a wrong choice, the money is burned out.

Augur can be considered a progressive gambling project, as such a blockchain-based betting system is more profitable for users due to a small margin compared to traditional bookmakers.

History of Augur (REP)

The history of Augur dates back to the American Joey Krug, who, as a teenager, became seriously interested in betting on horse races and stock exchanges. Further, his business acumen began to develop even more productively when he learned about Bitcoin in 2011 . Without completing an educational course at a California college, Krug began creating third-party applications involving digital money. This occupation led him to the Skype group, where he met the future Ethereum founder Buterin and biophysicist Peterson, a startup in the field of blockchain technologies.

Subsequently, such cooperation, it is Buterin who acts as the ideological inspirer of the Augur system. The basis for the creation of Augur is its development of the Schellingcoin and Truthcoin projects, which solve the "problem of oracles" by distributing payments automatically and without the participation of intermediaries. The draft plans for these protocols were approved by Krug and Peterson, and most importantly, they interested the investor Joe Costello, who allocated $ 1 million for a promising project. The detailed project was named Augur in honor of the Augurs, the soothsayers of Rome, who make their predictions for the future on the flight of birds. The graphic emblem of the project depicted a 3-point pyramid with an all-seeing eye in the center of the figure. Soon, a working analogue of the platform was created, operating in test mode on the Ethereum network . In the period from late summer to early autumn 2015, partners sold 11 million tokens at 60 cents each, leaving about 20% at their disposal in order to form financial motivators for REP token holders within the system. The profit received from the sale of tokens was planned to be used as a material base for a non-profit union of the “Prediction Fund” type. This Forecast Foundation could not generate income from its own product in the form of the Augur platform, but had to support the further operation and development of this project.

It took the developers three years to create a fully developed algorithm. At the same time, most of the team lived and worked at the same time in San Francisco in a building called "Bitcoin Basement", while Peterson came to them from Oregon. In 2016, a beta version of the code was released, which had many bugs due to the vulnerability to hacks in the Serpent programming language.

The full launch of Augur in 2018 caused quite a stir among users. Its success could be compared to the legendary CryptoKitties network, which almost eliminated the use of the Ethereum platform a year before these implementations. About $ 1.5 million, which belonged to the platform, circulated in popular markets related to sports and finance. However, after a stormy breakthrough, a series of criticism from enemies began about the uncomfortable interface of the software, the low cost of tokens and high commission fees. The cost of the cryptocurrency has dropped three times to the level of $ 12.

In the updated version of Augur 2.0, which should appear on the network in the near future, the developers have resolved a number of technical problems indicated in the "wish list" on Reddit, which should ensure the stability of the value of traders funds. Today, the effectiveness of the Augur system in solving the problem of oracles is questionable both from competitors in the person of PredictIt media director Will Jennings, and from the developer of the Circle. Its worth noting that both Krug and Peterson are no longer officially working on Augur. This proves the absolute decentralization of the project, when the creators of this business can leave of their own accord without prejudice to the rest of the developers who have the opportunity to live off the remnants of the initial token sale. In turn, Buterin, as the current project consultant, is optimistic and continues to believe in the bright future of Augur, despite a slight decline in user interest in the application. Today, the daily number of platform users is about 30 people.

Distinctive features of Augur

When asked what Augur is, it is important to be aware of two platform guiding ideas:

a prediction market, where any selected event can have two outcomes;
the theory of the wisdom of the crowd, implying a higher predictive potential of an opinion formed in the environment of a large number of people, in comparison with the forecast of an isolated individual.

Based on the last fundamental concept, the Augur platform has a specific feature in the form of expressing the probability of a particular outcome in shares (for example, 53% probability equates to 53 cents). Also, an important distinctive aspect of the application in question is the receipt by the user of a certain reward from the total fees of the entire system, the size of which is determined by the number of tokens on the account. Along with this, it should be noted that the user receives the due reward in cryptocurrency REP tokens, while bets are made in real money currency.

How Augur works

Every person has a 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, test their analytical thinking and intuition online. There are many websites designed specifically for betting. For example, the popular Betfair resource optimized for sports betting. What is so special about Augur?

Augur is a platform designed to predict a specific event. Now this is in demand, since the "wisdom of the crowd" is more accurate than marketing research. Therefore, the platform is actively used to make forecasts for 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 make bets on any events in private, thereby earning income without revealing your identity.

The operating principle of the platform is based on the Ethereum blockchain. And this has many advantages, since it is almost impossible to disable the service or take control of it, because it does not have main servers and control centers. Anyone can become a client, for this you just need to go to the official website of the company, select a forecast from the active list and place a bet. If you have not found an event of interest, you can independently create forecasts and make first bets. Thus, the platform gives everyone the opportunity to find out the public opinion regarding any event and forecast. This fact has long been appreciated not only by large companies, but also by ordinary users.

Now, with specific examples, lets look at what Augur is and how the system works. So, the technology is built on the principle of a “forecast market”. You can create any events that suggest two outcomes. For example, the next presidential elections are coming. You can predict whether a specific candidate will win or not. Or lets take a topic that is closer to us - the sensational Bitcoin. Today the rate is unstable, over the summer it has suffered significant crashes and ups. Analysts predict that Bitcoin will grow significantly by the end of 2019. A prediction can be made: will Bitcoin reach the $ 20K mark by the end of 2019?

Naturally, there will also be two possible answers here: yes and no. After composing the event, the person who opened it needs to issue shares. These are the so-called shares that are bought out by the participants in the forecast. The cost of the forecast will depend on how many people will buy out which shares. The par value of the share is $ 1. So, if 60% support the opinion that Bitcoin will be able to reach the 20 thousand dollars mark by December 31, 2019, the cost of the “YES” vote will be equal to $ 0.65. Accordingly, the value of the “NO” vote will be estimated at $ 0.35.

We have already written that Augur is a decentralized platform. There are arbitrators here who confirm the occurrence of a specific event. The REP token holders act as arbitrators. They are responsible for deciding which outcome won. Accordingly, the arbitrators determine which of the participants will receive the highest reward. They are paid a small commission for their work.

To summarize, the Augur platform is based on a prediction and betting system. Anyone can open a new event, but its outcome is monitored by subjective arbiters who do not allow fraud. The system is decentralized, multifunctional, understandable and accessible to users.

And one more important point. Despite the fact that REP plays an important role in the functioning of the Augur system, the cryptocurrency does not directly participate in trading, because the rates are based on real money. For reporting purposes, event participants do not need to buy or use the platforms cryptocurrency. REP is only needed by referees.

Augur advantages and disadvantages

Like any service, Augur has its own strengths and weaknesses. Lets take a closer look.

Augur benefits

Decentralization. Today it is a priority item for cryptocurrency , which makes it an international currency instrument, allowing you to quickly make payments and make transfers around the world with minimal fees.
The platform does not have central servers, therefore it is maximally protected for users and confidential.
A special REP token and the system generate reports on all events that take place in the global market. Centralized systems do not have such capabilities.
The users themselves supervise the state of trading, so the commissions are minimal here, unlike other bookmaker and trading platforms created specifically for executives to earn money.
Transactions take place on the blockchain without human intervention. Smart contracts are fast and as secure as possible .

The very principle of the platforms existence is an indisputable advantage. By creating a forecast, it is possible to study and analyze the opinion of a large number of people regarding a topical issue. Since voting is based on money, people are betting responsibly. Such a forecasting system, over the entire period of its existence, has shown much greater efficiency than classical social polls. Participants analyze the question and put on the option in which they are confident. In addition, the platform allows you to create any predictions, up to: "Will the world end in 2025"?

The Augur platform has no significant drawbacks. For those who are interested in it, it will be as useful, convenient and effective as possible.

Does AUGUR mining exist?

The mining principle of Augur is similar to that of Ethreum. Coins are mined in several ways, but in strict accordance with the PoW protocol . So, you can mine Augur by:

Farms. The most popular method used by most cryptocurrency holders. For mining, you need to buy special equipment on which all computing operations will be carried out. Naturally, it is quite expensive, but miners claim that it pays off quickly.
ASIC devices. This is even more expensive equipment, distinguished by its high manufacturability and speed of operation. The advantages of ASIC devices are that they allow you to quickly mine large amounts of cryptocurrencies. But there are also disadvantages, besides the high price. The fact is that if some part fails, it is almost impossible to repair or replace it. Maintaining and repairing the unit costs about the same as buying a new ASIC device.
PC. You can mine Augur on a laptop or desktop computer. True, weak, outdated equipment is not suitable, it simply will not withstand such loads.

It is worth paying attention here to the fact that Augur and REP are different assets. If Augur is more an analogue of Ethereum, then REP are tokens that are created as an internal digital currency, already distributed between developers and sold.

How can I buy or sell Augur?

REP coins can be bought on most investment exchanges where this token is listed. The most popular are: Binance, Bitbns, BX Thailand, ChaoEX, Cryptopia, Ethfinex, Liqui, Livecoin, Radar Relay, Stellarport, BitForex, etc.

The Augur price is not a fixed figure, as the price depends on many factors and can change throughout the day. The main reference point here is the price of reputation tokens that are in the possession of the participants. They are used for trading as well as to get a percentage of the commission. Thus, REP holders automatically own a certain percentage of Augurs business model. The formation of the price of tokens is influenced by a number of factors:

Ecosystem development. Our platform is part of the Ethereum ecosystem, taking a leadership position in development prospects and potential. And since Ethereum now ranks second in terms of capitalization, the prospects for Augur are more than bright. Along with popularity and rating, Augur gets decent competition on the crypto market. Therefore, the site needs to constantly develop and improve in order not to lose its position.
Perspectives. The market for bets and predictions is immense. The human essence always strives for risk, excitement, thrill. The sports industry should be the main focus of Augur, as sports betting and predicting the outcome of sports events cover the most investments and investments of the public. Moreover, the platform allows users to create their own projects and predictions, making a profit without directly participating in the event itself.
Relationship with authorities. Each project created within the framework of Augur must be approved by the authorities of the state in whose territory it will be registered. So, the company is actively working on the development of the Predictions Fund, but has not yet received permission from the US government authorities (the fund should be located in America). This is a significant risk factor that can drive the price of Augur down.
Conscientious attitude to their duties oracles. We know that there is a constant reallocation of tokens. The dishonest attitude of judges to their duties can lead to the fact that tokens change their owners.
Number of oracles. Today, there are about 2000 Augur judges who have tokens, including prominent business representatives and well-known investors. Their reputation directly affects the value of tokens and public confidence in coins.

AUGUR to ruble rate

The AUGUR rate has been changing since 2016, while there have been both ups and downs in the value of tokens. Analyzing the charts, one cannot fail to notice that the peaks in the growth of the AUGUR to ruble ratio fell on those periods in the history of the crypto market when the entire cryptocurrency rose in price. So, lets analyze the basic periods of the course:

On February 3, 2016, one AUGUR was given 186.95 rubles. The first wave of appreciation of the currency fell already in March this year, when AUGUR rose against the ruble to the level of 868.81. There was a gradual decline until October 2016. The rate fluctuated between 400-600 rubles for 1 AUGUR. On October 1, there was again a slight rise in price - up to 762 rubles. But literally after 2 weeks, the rate fell to 200-300 rubles, staying at this mark until March 2017.
On March 11, 2017, AUGUR surpassed the RUB 400 mark against the ruble and continued to grow rapidly. In June 2017, 1957.16 rubles were already given for 1 AUGUR. Until December of the same year, the price gradually grew and fell to 900 rubles per token.
On December 18, 2017, the media exploded with reports of a sudden rise in the AUGUR rate. It reached 6,760.13 rubles and caused a real stir in the crypto market. Literally in a week, the rate dropped to 4,000 rubles, and on January 11, 2018 again reached a maximum of 6146.85 rubles. Then there was a gradual decline and on April 5 for 1 AUGUR they already gave only 1,465.34 rubles.
The next peak of the rise in value fell on May 12, 2018. The value of the coin has reached 3161.05 rubles. Until September 15 of the same year, there were no new increases in value; prices gradually fell. On September 15, 2018, the mountain course of AUGUR was 930.87 rubles. In December, tokens reached their minimum value - 455 rubles.
From January 1, 2019, the AUGUR price began to rise again, but did not reach such high levels. On May 18, 2019, there was a maximum of 1,374.68 rubles.

On September 1, 2019, the ratio was 1: 537.49 to the ruble.

AUGUR to USD rate

The situation with the dollar is about the same as with the ruble. Over the history of the tokens existence, both peaks in the high cost of the coin and its rapid fall in price have been observed. So, in the fall of 2016, they gave $ 7 for 1 AUGUR. But in December, the value of the currency fell dramatically - to $ 2.82.

Since the beginning of 2017, there has been a gradual rise in the rate, and on June 8 the coin was already worth $ 35.3. This was the first wave of Augur price hikes. Until July 31, the price has decreased. AUGUR has already been correlated to the dollar as 1: 16.55. A slight rise in price was observed in August - up to $ 29.72. And then the price only fell, reaching at that time its minimum of $ 17.35 on November 12.

The main event in the life of the cryptocurrency fell on January 13, 2018, when AUGUR was equal to the dollar as 1: 105.39. The excitement passed by April 7, 2018. The currency dropped to $ 24.

The peak of the second wave peaked on May 19, 2018. Augurs course was $ 53.5. Until December of this year, the price of the coin only fell, moreover, it stopped at around $ 6.

At the beginning of 2019, there was a slight rise in price, AUGUR reached $ 20 against the dollar. Then there was a steady drop in the exchange rate.

To date, on September 4, 2019, the dollar was $ 8.03.

AUGUR to EUR rate

In the fall of 2016, AUGUR was in a ratio of 1: 4.74 to the euro. The first peak of the rise in price fell on June 11. AUGUR was given 29.53 coins. The second peak of the rise in price fell on December 19, 2019. The AUGUR ratio to the euro was 1: 84.7. The third wave fell on May 20, 2019. Then for 1 AUGUR they gave 46.15 euros.

On September 4, 2019, the AUGUR to Euro exchange rate is 7.703.

Where to store AUGUR

For the tokens of the site in question, a separate wallet has not yet been developed. The creators recommend storing Augur in hardware wallets, which are more reliable and protected from hacker attacks and malware. So, REP tokens are supported by such wallets as Ledger Nano S and Trezor. These are proven devices from world-famous developers, which are distinguished by ease of use and the maximum level of security for the holder of digital coins.

For an option that is easier to use and cheaper, you can choose an online wallet . But also carefully study its functionality, whether REP tokens support. For example, you can store Augur on Jaxx and Exodus. Popular online storages verified by millions of users. Their plus is the presence of a mobile version, which allows you to always have quick access to assets. You will be able to perform basic operations online anytime, anywhere.

Exchanges also offer their own wallets. Most of them are multifunctional, allowing you to store Augur, perform transfers, payments and exchange transactions .

In principle, given the fact that REP tokens were developed on the Ethereum platform, they can be stored on any wallets that support the ERC-20 standard . Many storage sources recommend the official Mist wallet from Ethereum. It is desktop, requires space on the computer, but is highly reliable and secure.

How much is total AUGUR

Highlights: How many Augur have been released in total? The developers have provided for a fixed number of tokens - 11 million. Of these, 80% were sold, and 16% were distributed among themselves by members of the development team. The remaining 4% of tokens are in the use of the Forecast Fund and are intended for the management, maintenance and promotion of the platform.

Thus, Augur is limited to 11 million REP tokens. In the system, coins are constantly redistributed according to the following principle: the more bets played (guessed), the more Augur is credited to the account. The weight of the predictions of such a participant grows, and the credibility of his opinion also increases. There is only one point here: if this participant is mistaken or does not participate in the voting for a long time, the coins are transferred to the account of other users. Thus, the platform developers encourage participants to be active and make balanced bets.

Dont assume that Augur is just a coin to participate in polls and polls. In fact, earned tokens can be exchanged for another cryptocurrency or fiat money through popular exchangers. Most of the platforms clients do just that, making money using predictions.

Augurs emission is fixed, but the cost is constantly fluctuating. There are a number of factors that influence this:

The success of Ether - the platform on which Augur is developed. True, the sites own reputation also affects the cost.
Good potential. Analysts are foreshadowing a promising future for Augur, as the volume of global bets can be estimated at trillions of dollars. If the platform manages to take on at least some of these funds, it will already be good.
The decentralization of the platform makes it structure-independent, although some users may not be able to use Augur.
The only influence on the project is the oracles or judges. True, abuse of power can have negative consequences.

Development prospects

The potential of Augur can be influenced by such factors:

the use of a persons desire for excitement as the basis for building a platform;
general strengthening of the cryptocurrency market;
passive income through maintaining reputation;
development and implementation of new directions for using the platform;
limited emission Augur;
multifunctionality of the platform, which allows users to solve various problems.

The platform is constantly evolving and improving, going beyond bookmaker offices. He pays great attention to the gambling industry, since they are the most demanded and profitable. The cryptocurrency has good prospects and an upward trend. Although, experts recommend not to forget about the risks associated with the functioning of young projects.

7 interesting facts about Augur

The Augur platform is built around the wisdom of the crowd. Analysts argue that the opinions of a large number of people regarding a particular event, most often, turn out to be true. For example, at one time, the InTrade forecast market surpassed opinion polls by more accurately determining the results of the US presidential election. Google uses this system to measure the attractiveness to users of its new applications and products.
Three cryptocurrencies are used on the Augur platform: Ethereum, Bitcoin and REP token, developed on the basis of ERC-20. Bets and predictions are made in digital coins, and REP is used to pay rewards to clients who make accurate predictions.
Work on Augur can be roughly divided into 2 stages: the first is creating a new market question, accepting bets and predicting participants; the second - the period of reporting and checking the results of the event, determining the truth of the predictions, payment of bets. An interesting fact is that bet participants can withdraw money during the event, thereby adjusting the balance of the forecast.
Many famous personalities believe in the prospects of the project. For example, Joe Costello, who was asked to become the CEO of Apple, invested a fortune - almost 300 thousand dollars in the creation and promotion of the platform.
As many Augur is released as it will be. The issue is limited, the number of tokens will not increase.
As part of the project, a unique meme called Augur it was developed. It is a program similar to Google it.
Augur has created active bounties: any user can report bugs and malfunctions in the system and receive a reward for the information, and, moreover, a decent amount of up to 27.5 thousand dollars.

The future of Augur

Based on current statistics and news, it can be argued that the future of Augur is quite promising with very bright prospects. The potential development of the project is accompanied by the following facts:

The constant increase in the turnover of funds in the world of online betting and the demand for gambling. So, in the field of sports betting, a rotation of approximately 3 trillion dollars is recorded. At the same time, the huge sports betting services represented by Veil, Guesser and Blitzpredict are fully functioning on the basis of Augur.
An impressive platform capitalization ($ 210 million in 2019), a growing coin quotation ($ 19) and a fixed issue of tokens in the amount of 11 million REP. These are significant factors for the further increase in the price of cryptocurrency.
Developers competent choice of development directions. The areas of application of the technology in the public and financial sectors are actively expanding (new PdotIndex projects for determining the rating of famous people, Reporters for predicting the growth of the price of advanced cryptocurrencies, business forecasts for top managers of large companies).
Openness and transparency of the platform. Any user can place a bet and create a market, and the risk of dishonest actions is minimized due to the presence of a huge number of referees and bona fide oracles (judges).
Lack of worthy competitors. Gnosis is considered a similar platform in terms of operation, but it is not very popular among users due to the complexity and confusion of the system.

Therefore, if the majority of sports prediction experts (tippers) choose Augur, there will be a big jump in the price of the systems internal tokens. According to the most optimistic forecasts, the REP rate may rise to $ 50 per coin by the spring of 2020.

Augur forecasts for the next 5 years based on various sources

Cryptocurrency forecasts up to 2023 vary significantly from different analysts. The fact is that experts use different approaches to make forecasts, plus, reaching a consensus of opinion is hampered by the uncertainty that reigns in the crypto market. So, we offer several forecast options:

Based on technical analysis. Analysts predict a gradual fall in the rate. By the end of 2019, it will be at the $ 6.5 mark. And at the end of 2020, the currency will fall to the critical level of $ 0.000001 and will not rise again.
Based on the theory of cycles. This forecast is fundamentally different from the previous one, reporting that by the end of 2019 the Augur rate will rise to $ 44, by the end of 2020 - to $ 54, and by the end of 2021 - to $ 80.
Based on neural networks. Artificial intelligence also foreshadows a significant rise in currency prices, up to $ 110 by 2023.

To summarize, we note that Augur is quite a promising coin. It has already been appreciated by ordinary users and large companies. The project is being actively promoted, investors are investing decent funds in its development, it is advertised, showing convenience and value.

The fall in the rate can only be caused by the actions and policies of competitors, as well as unfavorable events in the crypto market or in the global economy. In principle, analyzing different forecasts, we note that the coin has a long-term perspective, therefore it has a place to be in your investment portfolio.

We hope the article was informative and helped to understand what Augur is and whether it is worth investing.