We all have heard about decentralized exchanges, NFT marketplaces, futures platforms and a lot more in the cryptocurrency realm. However, the crypto market is so comprehensive this is just the tip of the iceberg. Today, we are going to discuss a different kind of markets – predictive markets – and one project specifically. Augur is a predictive market based on the blockchain technology but what is a predictive market?
These markets are very much similar to exchanges; however, instead of facilitating the exchange of assets and commodities, predictive markets allow users to bet on the outcome of events through a token representative of a particular outcome.
What is Augur?
Augur is a predictive market based on the blockchain of Ethereum. Augur transforms the concept of predictive markets by making its market completely decentralized. Users can create “shares” or tokens which are representative of a part of the value of an outcome of a specific event. The whole process takes place without the intervention of any centralized intermediary or regulatory authority that can cause hinderances. Hence, Augur offers greater freedom to its users because of its decentralization.
From a technical point of view, Augur is a blockchain-based software. It automatically maintains a digital orderbook which records all transactions of every market that is created on the platform. Augur does not limit its users to the number or kinds of events that can be traded on. The platform has REP as its native token. Users are rewarded with REP for correctly betting while they lose capital in the case of wrong bets. However, users are not required to own REP in order to be able to participate in the market. The ease of use and the accessibility Augur provides is what counts towards its popularity.
What is the future potential of REP?
Augur has performed well in the bull run of 2021; however, it must be pointed out that the cryptocurrency was not able to break its previous all-time high established in 2018. This may be indicative of the fact that investors have lost interest in the project and it has already peaked in terms of popularity.
At the time of writing, the cryptocurrency stands at a price level of $27.13. The cryptocurrency has been surging upwards in the daily timeframe. The price predictions for the cryptocurrency are bullish. According to the estimates of Wallet investor, Augur is expected to be operating at a price level of $32 in a year’s time while the price will reach $68 in five years. Digital Coin Price is even more bullish on the cryptocurrency and suggests a price of $97 by 2026.