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22 Oct 2021

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What is Augur? – Work, and More
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What is Augur? – Work, and More

Augur is the decentralized prediction market that can forecast the outcome of an event based on the ‘wisdom of the crowd’ principle.

And with its method, information collected from the crowd average into the most realistic possibility.

And therefore, the most probable outcome. Correct predictions are rewarded by the network, while incorrect reporting is penalized – this incentivizes truthful reporting.

Also, the Augur aims to revolutionize prediction markets and, in doing so, changing the way people receive and verify ‘truth.’

And the main idea is to make more accurate predictions by large groups of people rather than a small team of experts.

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How does Augur Work?

Augur runs on the Ethereum blockchain, meaning purchases of the shares in its prediction markets they complete using ETH, Ethereum’s native asset.

Also, traders wishing to use a less volatile asset can bet in markets using DAI, a stable coin running on top of Ethereum.

Also, the platform leverages Ethereum smart contracts to execute all final bet outcomes.

And it ensuring the correct results reports and that winners compensate.

And it facilitates the user experience for betting on event outcomes, and Augur divides its execution process into four distinct steps:

Market Creation

Anyone can create a betting market based on real-world events. Its creators set the resolution source (where the outcome determine).

And a creator fee (a percentage of a trader’s winnings) they collect once the market has settled.

Market Trading

Users buy shares in an event’s outcome, which fluctuates depending on the number of bets placed.

Reporting

The outcomes of each event determine by Augur’s oracle, which brings real-world information onto the blockchain. Reporters report on the market, and the consensus outcome from all reporters consider “truth.”

Those whose report was not part of the consensus lose their staked REP which then distributes to those reported with the agreement.

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