What is Augur Project and his own token: Reputation Coin.
One of the (several) new entries in the cryptocurrency world is Augur: the Reputation Coin.
But, what makes Augur different from many other cryptocurrencies out there?
Augur is an open-source, decentralized platform built on Ethereum, the well-known blockchain technology that allows the execution of smart contracts.
Augur platform “seeks to leverage the open, global, peer-to-peer ledger functionally that blockchain technology provides, as well as game theory and financial incentives, to better explore the the concept of the wisdom of crowds and try to get more accurate predictions about future events”.
Ok, very interesting, but in concrete, what Augur want to do?
On Augur platform, anyone from anywhere can create a market of his topic of choice (example: “What team will win Stanley Cup 2017?”). The interesting thing is that no centralized approval is required and everyone can participate, losing a minimal amount of money to fees. A good, important advantage is the “reduce the possibility of frauds and counterparty risk: monetary exchanges on the platform are regulated by smart contracts and a distributed oracle system ensure that no one can claim a false result on an event.
But what are the bases that make Augur’ Team believes to guess the outcome of any event?
The base idea on what Augur seems to turn around is the Wisdom of Crowds (already knows as Collective Intelligence). This theory is very simple: the opinion of a collective of subjects is as good as, or better than, the answer given by any of the individuals within the group.
In other words, this Theory want asserts that a random group of casual subjects often can give better answer/opinion than a single expert. This is the basis of many well known online websites like Wikipedia, Quora, and Yahoo Answer.
The Augur final goal is ambitious and interesting at the same time: build an online “marketplace”, able to create predictions of several future events.
The entire project turns around the Augur Coin: Reputation (REP). Reputation Coin(from here called “REP”) is a value token build on Ethereum. According to Augur’ Site, “can be thought of as the ‘score’ of an individual participant within Augur. REP is not an investment, but rather a tool necessary to make Augur work.”
REP tokens are limited to 11,000,000. 80% of this amount was sold during Augur Public Token Sale in October 2015, for a total of $5,300,000. Contrary to many actual Alt Coin, REP holders will not (necessarily) use REP like a coin, but like a kind of Augur’ shares. “By owning REP and participating in the accurate reporting on the outcomes of events, you are entitled to a portion of Augurs market fees. Each REP token entitles you to 1 / 22,000,000 of Augur total market fees”.
Unfortunately, holding some REP is not enough to collect a portion of Augur’s fees: “the more REP you own and report correctly with, the more in fees you will collect”. This should make REP desirable only by who believe and want to be part of Augur Project. If you are interested and want to estimate of expected earnings, you can try Repulator Calculator made by an Augur Community member.
What’s our opinion about Augur?
It’s hard to define how Augur Project can impact the community. The project is ambitious, and, like others project previously saw on this blog, the potential uses of this platform are incredible and unimaginable.
On Augur’s blog, an Augur Dev wrote that “you don’t need Reputation to use Augur. Reputation is only used by reporters to report on the outcomes of events. Regular participants making bets on the platform will use Ether or any other Ethereum sub currency. We hope to see the utilization of stable-coins in the future for settlement of markets”.
This open several possible implications related to Augur success: if the platform will have success, the first beneficiary of this will certainly be Eth (other Augur’s community, obviously).
The chance to use any other Ethereum Token is interesting: if other Ethereum service will open to this possibility too there could form a sort of “ecosystem” where a single eth coin could be used for several purposes.
The fact that REP is not build to be properly a Coin but a kind of shares is singular for a cryptocurrency: you support the Augur’s Project, holding some Augur and participating in it. Augur rewards you with a percentage of Augur income. That makes it not indicated for occasional altcoin speculators, but for who believes in Augur Project.
We personally love this kind of innovative projects, we don’t know if it’ll have the success that deserves, but anyway it gives us (us=the cryptocurrencies enthusiasts) some very good and innovative points to ponder.
We’ll be back talking about Augur soon.
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