Cryptocurrencies

[DeFi] Focus on the Augur project (REP) – Cryptocurrencies

Augur, a name that refers to one of the oldest Ethereum tokens on the market created in September 2015. For the record, the term Augur takes us back to Roman times. Augur then designated the name given to a group of men who were in charge of observing the movements of birds in order to deduce, or rather predict the future of the Roman city and in particular the possible cases of attacks. that they might have to deal with. Even today the French language keeps this as a heritage with the famous expression “a bird of bad omen” or “it is a good omen”. Now that we’ve rebuilt our general culture to shine in society at our next dinner party, it’s time to take a look at our topic of the day: Augur. The project is part of the decentralized financee by offering a decentralized platform without a central control body dedicated to online betting.


Augur, what is it?

Augur is an open source project based on Ethereum blockchain technology (ETH) that aims to reinvent the gaming and betting industry. Indeed today the bets are held by a master hand by centralized companies. There are no longer any such companies in France since the loosening of legislation affecting the sector a little over ten years ago now. If these betting companies take care of centralizing bets, stakes and odds, Augur for its part by its decentralized aspect aims to completely liberate the market in the hands of its users who have the possibility of creating bets on all subjects without any limits.. These same users can also bet on these bets as they see fit. The Augur project is thus posed as a potential disruptor of the online betting market. A great potential, therefore, especially asAugur has just deployed version 2.0 this summer. Let’s go further to better understand what it is, how it works and especially how to start betting in a decentralized way.

Augur and antiquity
Augur takes its name from Antiquity …

A long-standing project: history of the first decentralized app

As mentioned in the introduction, the Augur project is an old cryptosphere-wide project. Like many Défi projects that are emerging more and more in recent months, we find at the head of Augure two men who form a duo.

On the one hand Joey krug, serial entrepreneur based in San Francisco, he has invested in many innovative projects, is an advisor to exchange 0x, he also created the cryptocurrency ECO. If that was not enough yet, he is also part of the top management of Pantera Personal-Financial.com, an investment fund specializing in blockchain projects and which notably supports many projects in the DeFi sector.

On the other side of the duo is a technical expert, co-founder and now technical director of the Augur project, Jack peterson presents himself on his social networks as a “wandering biophysicist”. He started the Augur project after being a math teacher but he has also participated in many crypto projects such as SideCoin, DUNE and many others.

On the other hand, it is interesting to note that Vitalik Buterin the co-founder of Ethereum as well as’Elisabeth Stark the co-founder of Lightning Labs are part of the Augur project within the “Advisors” team. At first glance, we are therefore dealing with a fairly serious team.

As early as 2014, the team led by Joey Krug and Jack Peterson under the aegis of the Forecast Foundation published the Whitepaper of the Augur project by presenting the project for the first decentralized prediction market. In September 2015, a ICO Raises $ 5.2 Million Value. It was not until March 2016 to see the first version of Augur deployed on the Ethereum testnet. Then 2018 is the year of live deployment of the Augur project. Finally, the last point of importance to date is the launch of V2 which therefore took place in the summer of 2020.

Augur, how does it work in practice?

The operation of the decentralized Augur platform can be explained in 4 key steps. The first is the step of creating a new market that can be bet. From the outset Augur therefore differed greatly from centralized sites where only teams could offer bets as well as choose the subjects that could be the subject of bets. With Augur anyone can come up with a new betting topic for a small amount of Ethers. Although the platform is decentralized and without limit of subjects on which to make predictions, the Augur protocol incorporates certain rules in order to avoid the creation of a big bazaar on which one would find bets which would not be verifiable. To enable this, Augur filters out topics that are too likely to prove invalid because they have an unverifiable outcome. While most invalid topics are filtered out upon creation, the Augur platform displays bettors the disability percentage of the topic they are betting on in order to attract their attention. Finally, Augur provides templates to facilitate the creation of bets on subjects validated by members of the community. Thus we find on the platform 3 possible types of bets.

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  • “Yes” / “No” questions: for example: will Donald Trump be elected in the next US presidential elections?
  • Multiple choice questions : for example: Which team will win the French league 1 football championship?
  • Scale issues : How many sunny days will we have this year in France?

Once the bet is configured on the platform, the time comes for the second step, that of the players’ bets. As on a classic betting application, we will bet on the realization of such or such event. Nothing new at this stage except that the bets are not made in FIAT-type currency (Euro, Dollar, etc.) but in DAI, a stable cryptocurrency based on the dollar rate. In order to facilitate the process and eliminate barriers to entry, it is quite easy to obtain DAI directly from Augur by making a purchase by credit card, via your Coinbase account or your crypto wallet. Bets are therefore made between the time of the subject’s arrival on the platform and the date of the event.

The third step comes after the event has taken place. Enter the members of the Augur network who hold the REP tokens. Unlike other decentralized finance tokens, token holders REP are encouraged to take part in the project by validating the bets. These members are thus categorized as “Reporters” which define the outcome of an event after its completion. These members are encouraged by the protocol to indicate the true outcome of an event, in fact, if this is the case they receive part of the pot as a reward, if they indicate the bad outcome they risk losing their REP. It is therefore by financial incentive of members that the Augur protocol guarantees that bets are not rigged.

Finally, the fourth and last step is to pay the players who bet on the “right horse”. This is also when the organizer of the bet is paid.

Augur logo

Augur, a project that goes beyond the betting industry?

If at first glance Augur presents itself as a decentralized online betting platform, the Whitepaper published in 2014 presented a project that even wants to go beyond that. Indeed if we mainly find bets on the evolution of the price of cryptocurrencies, the next political elections or sporting events, Augur is a limitless tool that you will have to know how to tame and use your creativity to create new bets that go beyond what can be seen on centralized platforms. In 2015, Vitalik Buterin had defined Augur as the “Uber of knowledge”.

The former CEO of Coinbase spoke about Augur, explaining that: “Predictive markets based on blockchain technology could counter fake news on social networks by financially encouraging people to seek the truth while ensuring the security and pseudonymity specific to the decentralized structure of the model..

The successful deployment of version 2 of Augur is an important step in the evolution of the project, we will not help saying that it is rather “a good omen” for the continuation of a project that Forbes describes as a possible turning point in the history of the Internet with a return to decentralization. This version 2 allows in particular to have a better user design, the main advantage of Augur compared to betting companies is to offer much lower fees than other online betting companies, less than 1% fees on Augur against 5 to 10% on the centralized platforms that you know. It should also be noted that with the explosion of the Challenge sector, the dollar value of investments made in Augur doubled in August, from 300,000 to over 750,000 dollars.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

While Augure and its REP token are full of promise for reinventing the betting industry and more generally creating a new predictive model, it faces many challenges ahead. The big challenge of this project is a legal issue. Indeed, betting laws are quite strict and restrictive in many countries. Augur is not currently licensed like traditional centralized betting companies. In any case, this project is another brick added to the DeFi ecosystem!

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