Augur is a prediction market platform that gives incentives or rewards to the users who can correctly predict future events such weathers, elections, sports, etc. It allows you to make bets on prediction markets, take it as the possibility that lets you play as the casino, rather than just a gambler. With REP, you can make your bets and charge people for the fee, and they can bet on it.
REP is a decentralized, open-source prediction platform anyone can use, create markets, buy shares, and report on outcomes- all while adding each’s knowledge to the crowd’s predictive wisdom. Augur works using Blockchain technology to rally the power of the crowd.
How exactly does REP works?
First, a user creates a prediction market. For instance, given the concept of whether ABC Company will become the next billion-dollar business in the next year or not. Then, people will place their wagers or bets using a real market based-odd system. When the event passes, the crowd verifies the results. Participants are rewarded for honest reporting and for bidding for the right and correct result.
Augur opens predictive markets to the entire world, putting the forecasting power of the crowd to the ultimate test. The current market price of a share is an estimate of the probability of an event occurring. The prices of each unit add up to one dollar. To set an example, if you buy one share at even odds, you will have to pay 50 cents for it. If you end up predicting the proper answer then, you’ll receive a dollar for that share.
Augur video explanation
These markets rely on a scientific principle known as the wisdom of the crowd, which states that “If you ask enough people something, their average answer is usually far more accurate than any expert.” REP allows users to create one of the most powerful forecasting tools. It has thousands of users reporting on these outcomes using something called reputation. This platform allows anyone in the world to create a market by asking questions about anything. They can fund their market and receive fees from people in exchange.