Augur (REP) - a cryptocurrency assuming "wisdom of the crowd"

It is commonly believed that experts "know best". Research shows, however, that regardless of the industry, the average of the larger number of people asked, even randomly selected, will be much more accurate. This is what the Augur network and its REP token are based on.

We continue the cycle of the Forex Club portal in which we describe the largest, most interesting, most controversial and based on the most interesting assumptions blockchain networks and cryptocurrencies. Today it's time for the Augur network and its REP token - no doubt based on interesting assumptions.

The idea was born in 2014, and in 2015 5,2 million were collected. USD for project development. As a result, a beta version was created in the first quarter of 2016, and the final version 1,5 years later. During the ICO, 80% of the tokens were given to investors, 16% to developers and advisers, and 4% to Forecast Foundation, i.e. the organization responsible for the development and promotion of the platform that was created on the basis of Ethereum.

How the Augur network works

Augur is a network that was not created simply so that its creators could make money on it. It has a specific purpose and allowed the introduction of new services based on blockchain technology. Thanks to it, a decentralized forecasting market was created, which is based on data provided by users. Sounds not entirely clear? This is nothing but betting on the results of sports games. If we predict a good result - we earn. If not, we lose. However, the market can be much more extensive and does not have to focus on two or three answers. It can assume virtually any number of variables. We can create questions that have an unlimited number of options - also resulting from one another.

This is where the "wisdom of the crowd" mentioned at the beginning lies, assuming that if we ask a question to an expert and a large number of people who are not experts at all, the average of their answers will be much closer to the truth than the expert's.

So in the Internet, we can open a new market by asking who will win, for example, a football match. Then community members will start betting on the results - the more people bet on Team X, the more likely it is that they will win. When the match is over, users enter the score on the net. Nobody from the outside has to do it, because it is of course decentralized, but thanks to this, the service is cheaper, because no supervisor deals with its administration.

So who gets paid? Contrary to appearances, everyone can earn on it. Whoever creates a given market or asks a question receives remuneration for user transaction fees. Users can earn from correct forecasts, but they can also lose a lot if they make a big mistake. In a way, it is a bit like sports betting or Forex market with the difference that you can forecast virtually anything you can think of. From weather forecasts to Bukmaher plants to election results.

The role of the REP (Reputation) token

You can bet on the results on the Ethereum cryptocurrency, but by passing the information to the Augur network, we will receive REP tokens. Those who provide the most accurate information will get the most. 1 REP is 1/22 million of all Augur network transaction fees. Thanks to this, the level of earnings depends not only on what and how much information we transmit to the network, but also on how many tokens we have. Naturally, it pays to have as many of them as possible. It is also in the interest of all owners that the network is as popular as possible.

REP token quotes

There are currently 11 million REP tokens on the market. No more units can be mined, so there will be no more. Cryptocurrency can be traded on 40 exchanges. As of 04.09.2020/17,51/192,5, each token costs $ 11.01.2018, which translates into a capitalization of over $ 123,24 million. We had a peak on January XNUMX, XNUMX, when the REP cost USD XNUMX.