What Is Augur (REP)?

Augur is an oracle network and peer-to-peer powered prediction market protocol and is decentralized in nature. Augur is based on a set of smart contracts designed for usage on the Ethereum network. Blockchain oracles are things that connect blockchains to external systems, allowing smart contracts to execute depending on real-world inputs and outputs. Smart contracts are similar to ordinary contracts, except instead of being written on paper, these contracts run as protocols on the blockchain. Augur is distinguished by its decentralized governance mechanism and open-source contracts, which enable all users to participate in fair speculation.

As per the whitepaper, the Augur Protocol aims to resolve "the oracle problem," which is one of the most difficult problems that decentralized app (DApp) developers confront when attempting to bridge real-world data sources to the blockchain. The Augur oracle network enables information to be transferred from real-world data sources to the blockchain without the use of a third party.

Augur contracts make use of two cryptocurrencies: Ethereum and REP, Augur's native coin. Reputation (REP) is a staking token employed by reporters on the Augur network to resolve disputes or anticipate market outcomes. Reporters cover a market by putting their tokens in escrow and betting REP tokens on a likely outcome. The consensus of the market's reporters is regarded as truth, which enables Augur (REP) to function as a decentralized oracle solution.

When a user wishes to speculate on the outcome of a real-world event, they can send a transaction to the Augur smart contracts market. The regulations for each event's market are established as the market is created. When a market goes online, users can trade in the market until the event occurs. Traders close out their bets and collect any potential payments once the outcome is confirmed and determined by Augur's oracle system. Augur (REP) employs a complicated incentive structure that encourages reporting on correct outcomes. At the same time, the platform penalizes wrong outcome reporting and passive holders who do not stake for disputes and forks.

The value of Augur's REP cryptocurrency is derived from its ability to assure the successful execution of smart contracts that rely on the Augur network. The most notable feature is that REP is embedded into the network and is the only currency that can be used to report event results. REP token is built on Ethereum. 

History of Augur (REP)

Augur is a product of Forecast Foundation, founded by developers Jack Peterson and Joey Krug in 2014. In 2015, Forecast Foundation raised USD 5.5 million in Augur's ICO (initial coin offering) by selling 8.8 million REP coins. Thus, the project became the first cryptocurrency venture to use an ICO to attract funds. Eventually, the project became live in 2018 and drew a large number of users for betting in the first month itself. The whitepaper V2 was published on March 30, 2021, and was written by Jack Peterson, Joseph Krug, Micah Zoltu, Austin K. Williams, and Stephanie Alexander. 

How Are New Augur (REP) Tokens Created?

In addition to the role of Ethereum and REP as mentioned above, Augur divides its execution process into four discrete parts to make betting on event outcomes easier for users:

• Market Creation: A betting market based on real-world events can be created by anyone. Further, creators set the resolution source as well as the creator fee, which can be collected once the market has settled. Here, the resolution source is where the outcome is determined, and the creator fee is a percentage of the trader's winnings.

• Market Trading: Trading takes place when users purchase shares in the outcome of an event. The price of the shares differs according to the number of bets placed.

• Reporting: Augur's oracle, which brings real-world data onto the blockchain, determines the results of each event. Reporters report on the market, and "truth" is determined by the consensus of all the reporters. Those who did not contribute to the consensus report lose their staked REP, which is subsequently allocated to those who reported with the consensus.

• Settlement: When a market is reported and the "truth" is determined, those who correctly predicted the outcome get paid in ETH.

How Many Augur (REP) Tokens Are There?

The maximum supply of REP tokens is 5,934,228 REP tokens.

How to Buy Augur (REP) Tokens?

Augur (REP) tokens can be traded on Coinbase, on both Coinbase.com and the Coinbase app.