Augur [REP]: Decentralized prediction markets are going to be a lot harder to close down


Arianna Simpson, the Founder and Managing Director of Autonomous Companions, just lately spoke concerning the prediction market and the cryptocurrency house, with the principle focus being Augur Undertaking, on Twitter. The early-stage investor remarked that prediction market was one of many “most fascinating but poorly understood areas” of Decentralized Finance.

She stated,

Simpson additional acknowledged that individuals become involved in shopping for and buying and selling actions on these markets, the place the “worth of a contract” differs based mostly on a future final result. This was adopted by Simpson itemizing three frequent varieties of prediction market: binary, categorical, and scalar. She additionally identified that these market existed previous to gaining a whole lot of traction within the crypto-community, citing the instance of Hollywood Inventory Change [HSX], one of many first digital prediction markets.

By way of decentralized prediction market, she acknowledged that Augur Undertaking and Gnosis have been one of many “few foremost platforms”, including that it was probably the most taking place platforms at current. Following this, Simpson gave a quick introduction about Augur, stating that it was a trustless, decentralized prediction market constructed on Ethereum. She acknowledged that the market has 4 phases of development: creation, buying and selling, reporting, and settlement. She added that anybody may create a market based mostly on present occasions.

Additional, the Founder remarked that the predictive market have been all centralized earlier than Augur with centralized entity caring for the important thing roles comparable to ledger upkeep, market final result, and payouts. Nonetheless, the inception of decentralized community “removes most of the dangers of self-interest and corruption.” With Augur, the contracts are “absolutely automated” and the builders don’t have any management over the result and different features.

She concluded by stating that prediction markets have been an “fascinating solution to faucet the knowledge of the gang”, including that the decentralized variations have been going to be “a lot harder” to close down.

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