What is Auger protocol & REP token– Beginner’s guide

By Btcbeginners.com | btcbeginners | 19 Oct 2019


  • Interested in earning cryptocurrency for publishing & reading articles? Join today at Publish0x!**
  • Are you ready to invest in Bitcoin or cryptocurrency? Sign up the Coinbase, you and I will receive 10$ worth of bonus when you are spending more than 100$
  • If you are holding the cryptocurrency, your crypto in danger buy a hardware wallet Trezor or Ledger

Augur is a decentralized oracle and prediction market protocol which builds on the Ethereum blockchain and open-source protocol software. It is tried to solve the current limitations, and risk in the centralized prediction markets.

Auger protocol is created by the Forecast foundation which consists of non-profit academic researches and its main function is developing the Auger protocol.

Auger uses the two different currencies for the protocol which are Ethereum(ETH), and Reputation token (REP token) where the REP is native protocol currency uses for the various task within the protocol. 

What is the prediction market?

A prediction market is a market where a person or entity can be created for the purpose of the trading outcome of future events such as political events, winner of a sports game, price of a specific cryptocurrency, etc. Market participants can trade the market shares depending on the potential outcomes where market participant prediction is corrected, the participant will collect all shares of the market otherwise lose the shares. 

Limitations & risk in centralized prediction markets?

There are so many limitations involve in the centralized prediction markets such as high participation fees, limits or restrictions for the creation of any markets, global participation, require the intermediary to maintain the funds as well as the check the correct outcome.

In this case, Augur tries to solve the risk and limitations in centralized prediction markets help of the blockchain technology & smart contracts.

How Augur solve the limitations & risk in centralized prediction markets?

Augur is a decentralized protocol and there is no kind of border or limitation to participate in the Auger platform.

Augur is censorship resistant protocol which means anyone can create and participate in the prediction markets.

Augur has no intermediary to control the participant’s funds as well as checking the outcomes which means Auger’s smart contract will perform these functions.

There is some fee to creating and participating in the prediction markets where fees go to market creators and market reporters.

How Augur protocol work?

There are four major steps that consist of any markets in the Augur platform.

351665157-e88a9128ea7c42711cfdcad93f15e23bf2710c6ec61481e83fdc37a529707e7d.jpeg

The first step is creating the market in the platform considering the outcome of the upcoming event. In this case, anyone can create the market without any intermediary or limitation but the market creator should hold the REP tokens. Also, the market creator should set the event outcome reporter and outcome source such as a specific website, indicator, etc.

Next step, anyone can trade shares in the market with Ethereum(ETH) token, only you need to pay the GAS fee for the Ethereum network.

After the event happened, the reporter should report the actual outcome of the event. If any market participant or any REP holder can report or dispute. Augur motivates the actual reporters who are not honest will be financially penalized.

After the reporting process is finished, the settlement process comes into reality. Winners of the event outcome will receive a share of Ethereum directly into their Ethereum wallet.

What is Reputation token (or REP) uses cases?

Reputation token (or REP) is a native cryptocurrency token for the protocol which has many use cases. REP token is used as a staking coin for reporting and disputing the outcome of the event. Also, you need REP tokens to create the market on Augur protocol.

In this case, you don’t need REP tokens for betting the listed event on the platform that is can be done with the ETH.

Why you need to buy REP token - 4 Simple tips

Next Augur protocol version consists of exciting features such as integration of the 0x protocol for cheaper order creation, MakerDao's Dai as settlement currency other than ETH, and scalability improvements, etc where these features will increase the real-world adoption as true decentralized prediction market.

Augur team consists of the top class academic researches with varied backgrounds in development for decentralized applications.

Augur development happens consistently that you can check in the Augur Github. There are 39 Github repositories as well as 30k commits on the main Augur protocol repository.

Augur community is huge, as you can see Augur twitter account has more 100k followers base. Also, Facebook, Reddit have many members.

Best Augur wallets?

Augur protocol consists of the two cryptocurrencies which are Ethereum and REP token. REP token is ERC 20 token, in case you can use any ERC 20 wallets such as MyEtherWallet, MyCrypto, Metamask, Ledger, Trezor, etc.

IF you are seriously considering betting on the platform you can use natively Augur platform supported wallets such as Metamask, Ledger, and Trezor.

Original Source: https://www.btcbeginners.com/how-to-buy-rep-token/

How do you rate this article?


0

0

Btcbeginners.com
Btcbeginners.com

Admin of Btcbeginners.com


btcbeginners
btcbeginners

This blog belongs to Btcbeginners.com which consists of guides, tutorials, new for cryptocurreny beginners and enthusiasts.

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.