Gambling has historically been part of civilization. Human beings love to speculate about the results of certain events, or about the shape of the future of our society. Therefore, when a technology such as cryptocurrencies is transforming all the edges of our daily life. It is not surprising that the bets are also touched by them.
Among human inventions, cryptocurrencies are probably among the most widely used. And, there are virtual currencies for practically any activity we can think of. Every day more of them emerge with new functions.
In this way we find cryptocurrencies known worldwide as Bitcoin. Those that aim to serve as a replacement for fiat money in financial transactions carried out day by day. As well as asset value reserves, in the face of instability in the world market.
And on the other hand, we have virtual currencies like Nano that try to reduce the contamination of crypto assets through their issuance. Being an environmentally conscious cryptocurrency, and therefore a unique type of virtual currency in the market.
Therefore, it is not uncommon for a cryptocurrency like Augur to decide to focus their efforts specifically on the betting area. Creating a Blockchain network within which users, could exchange their predictions around different topics and make profits thanks to it.
An effort championed by the Forecast Foundation OU, an organization dedicated to supporting the development of Augur. But that nevertheless has no control of any kind on the coin blockchain. Which is completely decentralized, being in the hands of the users, and supported by the Ethereum network in the form of an ERC-20 token.
Augur's main function within the crypto community is to serve as a platform for creating prediction markets. A user, who wants to make a "bet" around a certain event, can use the Augur network and create an event within it.
From then on, the creator of the event and other Augur users will be able to buy and sell shares around a certain result of the event. For example, if you bet on the result of a soccer match between Argentina and Spain, the creator of the event may determine the result of the Spanish victory. Thus, the other users will be able to buy shares that support it or bet short against it, that is, for the Argentine victory.
In this way, a transparent betting market is created, which, once the event is over, will provide profits to those who have successfully predicted the outcome of the event. Transferring your winnings immediately to your wallet in the form of Ethereum.
Augur declares that through his prediction system, the "wisdom of the crowd" is used. Well, the results expected by a multitude of people are usually more accurate than those predicted by individual experts or analysts. Which only have access to a part of the story, tainted by their own biases.
Something that is very interesting especially when it comes to political events like elections. Wherein, the use of this collective wisdom of the crowd, can point to results that sometimes are not foreseen by the leading experts.
In addition to this predictive power, Augur aims to increase the capabilities of its platform starting in 2020. When version 2.0 of the cryptocurrency will be launched, with what is expected to be a significant increase in the speed of operations carried out on its Blockchain.