Crypto Academy Season 3 | Intermediate course by @amritraj –week 7: Blockchain Oracle

Hey everyone Hope you all are good and doing well. Today I go through the lecture of @allbert about Blockchain oracle. I found it really interesting and learned alot now i am sharing my assignment.

Question 1

History and Description. Does it have any token or cryptocurrency associated? Explain.

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Answer 1

^{Source: https://coinswitch.co/info/augur/what-is-augur}

Augur was founded in 2014 by Jack Peterson and Joey Krug. They sought to maneuver aloof from traditional prediction markets, which are centralized, meaning that participants need a trusted entity to take care of an honest record of the reality. Likewise, to see the end result of a foreseeable event, an impartial and assured judge must find a precise outcome to distribute the payments.

Augur aims to eliminate the chance of selfish behavior, corruption and theft by decentralizing the prediction market. The protocol works through auto-executable smart contracts that extract information from the magic of augur, a source of knowledge that transfers from the important world to the blockchain. Augur Market takes place in creation, trading, reporting and settlement phases.

Launch

In 2015, Augur facilitated one amongst the primary Initial Coin Offerings (ICO) on Ethereum and raised over $5 million through the sale of REP tokens. Initially, he sold 80%, REP 8.8 million, to boost funds. The sale takes place in four rounds, and also the price paid depends on the ultimate price of the token sale and therefore the discount supported the round within which the token was purchased.

The first round of True Augur lasted in August 1722, during which the participants received a 15% bonus. The second round of the Prophet lasts on August 22, 2228 and offers a tenth bonus. The Nate Silver round, the third round, offers a 5% bonus from August 28. 5. Nostradamus round, the last round, no bonus.

Security

Auspicious Markets could be a collection of open source smart contracts, encrypted with Solidity, deployed on the ethereum blockchain. Once executed, these smart contracts will settle payments in ETH with participating users.

Any user can create a market supported any universe event and upon creation, trading will commence. When creating a market, the user creates a wise contract with the market rules described within the code. All network users have the chance to trade until the event where the market relies has occurred. Once the end result is set through the oracle augur system, traders close their positions and potentially collect their payouts.

Correspondents report on a market that places REP tokens on a possible outcome. it's the act of a journalist declaring the "truth", stating the particular outcome of the underlying market event. The consensus of market journalists is taken into account “truth”, allowing Augur to function as a decentralized oracle.

REP holders must stake their tokens on the proper outcome to receive an incentive reward, a part of the market settlement fee. If reported incorrectly, registrants are penalized for negating potential bonus fees. REP holders who don't wager lawsuits or don't participate during a fork (a major lawsuit) are penalized. When a market is reported and also the "truth" is discovered, ETH are going to be rewarded to accept people who predict the result correctly.

According to Augur's white book, the reliability of the fork process to be effective in a very major network conflict is in line with the market capitalisation of REP. If the market capitalisation is large enough and also the attackers are economically justified, the attackers won't launch an attack because it might be too expensive. If the fork is reliable for major disputes, the incentives in situ can encourage users to behave honestly without initiating a fork. A fork takes up to 60 days to resolve as a more rigorous process for one market with multiple disputes.

Additionally, Augur contains a bug bounty program where security engineers and hackers may be rewarded for disclosing bugs and vulnerabilities identified in its codebase and contracts.

Question 2

Functionalities and real-life Applications

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Answer 2

Augur Market progresses in four stages: creation, negotiation, claim and settlement. Trading starts immediately after the market is created and all users are free to trade on any market. Once the outcome is determined, traders can close their positions and collect their payouts. Augur has a native token, Reputation (REP). REP is necessary for market makers and journalists when reporting on the results of markets generated on the Augur platform. Journalists cover a market by placing their REP on one of the possible market outcomes. In this way, the reporter declares that the bet result matches the actual outcome of the underlying market event. Journalists' consensus on a market as "truth" for the purpose of determining market outcomes. If a journalist's report on the outcome of a market does not correspond to the consensus of other journalists, Augur will redistribute the REP bet on this journalist's dissenting outcome to the journalists who have agreed. reported with consent. REP and participating in accurate reporting of event results, token holders are entitled to a share of platform fees. Each StakedREP token entitles its holders to an equal share in the market cost of Augur. The more REPs and accurate reports a reporter has, the more fees they earn for their work in protecting the platform. While REP plays a central role in Augur's operations, it's not used for trading on Augur's marketplace. Sellers will never need to own or use REP as they are not required to participate in the reporting process.

Question 3

Pros and Cons and of the Augur Oracle?

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Answer 3

One of Augur's most obvious advantages is that you can benefit from one of the strongest and most experienced teams in the entire industry. All Augur tokens are now available, and the entire Augur idea is also very interesting, interactive and innovative. Augur works well and has a high level of transparency to the Augur project from the very beginning. Project cost also provides better accessibility, lower cost, and higher accuracy for forecasting markets than ever before. However, cryptocurrency is not without its shortcomings. Augur's interface has been criticized for its lack of intuition, and the effectiveness of the game-based platform is questionable, which is often considered a social evil. Like any innovative idea, Augur will attract followers and opponents.

Advantages

1. The system is not trustworthy because its market consensus is determined by its own users. Your users will be rewarded with REP tokens to accurately report the outcome of the event.

2. Augur allows its users to access markets they would never otherwise be able to reach. This includes markets with high financial barriers to entry, as well as markets inaccessible due to geography, financial regulation or citizenship.

3. Holders of REP tokens are also entitled to 50% of the market trading fee. The more successful the Augur market, the more fees are distributed to the Augur holders.

Disadvantages

1. Although it is the most popular prediction platform running on blockchain, it faces several problems in its current iteration 4,444 available Barebone functions. Low liquidity and participation rate. Complex voting, settlement and branching mechanisms.

2. Lead to controversial results reporting and resolution. For active REP token holders, it illustrates the governance debate between "code is law" and a pragmatic approach.

3. There is great problem of like other Dapps of theifs and hacking activites.

Question 4

Future developments and new Projects?

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Answer 4

Currently, the altcoin market is experiencing a downward trend, so the REP price may remain unchanged before the end of the year. Therefore, in 2020, the REP price may break through the resistance level of $20.

Is Augur a good investment? Cost of the REP token is directly related to the demand of the platform & promising platform

Augur already operates Veil, Guesser and Blitzpredict sports betting services. In addition, the developers also launched the PdotIndex project to calculate celebrity ratings and Reporters to predict the growth of the value of major cryptocurrencies. In other words, the technology is actively used, and its scope of influence is expanding.

Augur is truly open and decentralized. Any user with ETH can create a market or place bets. Due to the work of a large number of arbitrators (approximately 200 now) and the ability to challenge predictions, the risk of fraud is minimized. Augur's fees are much lower than regular giveaway sites. After all, they are determined by the market maker, and it is to their advantage to get as much share as possible. The market capitalization of the game was $ 113 million. If common bookmakers start using Augur, the value of the internal tokens can increase substantially.

^{Source: https://augur.net/blog/launching-augur-turbo-chainlink-polygon/}

It is a decentralized human-based oracle that can stimulate the search for the truth of predictions. Augur v2 will continue to exist in the first layer as Augur Pro.

In order to bring secure and profitable data supply and settlement to Augur's global sports betting market, we formally integrated Chainlink's widely used Oracle network into the Augur Turbo platform. , which now runs on Polygon's Layer 2 expansion solution. By integrating Chainlink, anyone in the world can create their own Augur Turbo betting market for various sporting events such as the NBA, MLB, MMA and the Olympics. Plus, it also supports NFL, college football, soccer, tennis, golf, and E-sports to follow soon. Chainlink's highly secure and reliable Oracle network will be used to provide on-chain schedules and post-match scores, team and player statistics, ensuring that all sports betting markets on Augur Turbo are conducted in an accurate, transparent and timely manner. The combination of Augur, Chainlink and Polygon provides a complete stack infrastructure to support low-cost and secure gaming markets, which are built in near real-time and based on aggregation of high-quality data sources. With the development of the Augur ecosystem, we can easily launch new Chainlink data sources so that market makers can quickly launch new betting markets for more sports events and other verticals.

UPCOMING AND RUNNING PROJECTS O AUGUR

Conclusion

Here i get many more knowlegde about the blockchain oracle and also i did research about the augur oracle so i got many stuff of knowledge for this particular token also that was really good and deep study for me. Hence, i know more about the accessibility of the augur token and about the upcoming projects and the betting project recently the launching is really wide range project. Thank you @allbert professor to letting me this knowledge.