Crypto Academy Season 3 | Intermediate course week 7: Blockchain Oracle By @fabiha
Hello, Guys, I am Fine hopefully you all are also fine there is my homework task let's Start.
Homework Task (Season 3/Week-7)
Develop in a detailed and extensive way a post explaining some other Blockchain Oracle. (Chainlink will not be allowed)
What are the topics you should cover as a minimum?
1- History and Description. Does it have any token or cryptocurrency associated? Explain.
2- Functionalities and real-life applications.
3- Pros and Cons.
4- Future developments and new projects
Let's review a bit: Blockchain Oracle
An Oracle is any device or entity that connects deterministic blockchains with real-world off-chain external data. the way they work is these oracles actually enter data on the blockchain through an external transaction. This way we can guarantee that the blockchain has all the information needs to verify itself so instead of calling an API an off-chain oracle will actually get the API and then report it on a chain in a transaction that way there's no API calling in the Etherium or blockchain virtual machine itself this is why oracles are known as blockchain middleware as they bridge the blockchain world to the real world seems simple enough though but there's a big problem with this it's Commonly referred to as the oracle problem.
Oracles are services that feed external data into a smart contract so that it can execute conditional logic based on that data, there are different implementations of oracle's, there are different ways that you can use oracle's but the easiest way to think about it is if a contract needs to make a decision about something that's happening in the real world like whether like the result of a sports game or a race like information from a certain IOT sensor that's measuring temperature on a piece of fruit in transit all of those things have to be fed into the blockchain somehow and they have to be validated in some way so, with an oracle we need two things firstly we need the ability to get a certain amount of data from outside of the blockchain and feed that in an easy secure way and we also need the oracle to perform some sort of action as a trusted data source we need the ability to maybe reconcile multiple different sources of information and then feed that in as one stream to smart contract so we can have a high confidence level that the information we're getting and we have one chance of done right on the smart contract is correct now like I said before there are many different flavors of oracle's and diffirent approaches but by and large these oracle's are really accomplishing a couple of things first they are pulling information from multiple different sources so let's use the horse race example.
Let's just say there are four or five different separate public API's That supply the results of horse races for different applications out there in the world there are probably way more than that but let's just stick with four or five an oracle platform would likely take four or five all of those sources from the API's they would collect them and compare the results from each of those sources and in this case, these oracles are software oracle's they are pulling data from multiple sources in this case for horse race results and then they're taking all those results and either averaging them together and trying to figure out what the correct answer is before it supplies the data into the smart contract when I say they are trying to determine what information is correct to let's think of an example where there are five of these public API's four-horse races four of them say that house A won the race and then one says that horse B won the race this reconciliation could be as simple as best three out of five so in this case for the results say one horse A is the winner and then only one says horse B is the winner so in this gets whats get supplied to the contract by the software oracle is horse A is the winner so you can pay out the winners based on horse A.
Now, there are also methods of reconciliation, there are a bunch of different approaches to this but we're not going to explain every single one but just know that the man job of the oracle is to take a data feed from multiple sources collate that into one final decision and then pass it information.
A little history of Augur Project
The two big names behind the augur project are Jack Peterson and Joey Krug These two have been part of the crypto world for a while now and were instrumental in getting augur up and running in October of 2014. Peterson is a PhD with experience in entrepreneurship software development and blockchain programming while crew is a developer
who brings with him a strong background from the blockchain industry
Augur project defines itself as a decentralized oracle and was founded in 2014 by Jack Peterson and Joey Krug. It is a peer to peer protocol for prediction markets but what exactly does that mean basically it is a decentralized platform that utilizes ERC 20 token to make forecasts on events in the world as they occur now of course making predictions is not a new thing a project like Augur has both supporters and detractors those who like the platform use the term analysis while who are less enamored with it refer to it as simply as gambling no matter which side of the fence you fall on Augur is known for making its protocol accessible to anyone who wants to use it Don't get confusedAugur itself is not the prediction market, it is the protocol for users who wish to create their own markets so with that in mind let's take a closer look at how the Augur Protocol works.
How Augur protocol works
Augur uses the wisdom of crowds philosophy to drive its platform this is the idea that the aggregate beliefs of a wide range of individuals will result in a more accurate prediction than that of an expert or panel of experts using that belief augur allows for the creation of prediction markets that pay users when they make an accurate prediction about events in the real world Additionally those who create the markets are rewarded as well Let’s say that you want to participate in the prediction that the New England Patriots will win the next Super Bowl You purchase shares in the market and if the result is the outcome you chose you profit Once an event has occurred oracles find the outcome An Oracle is referred to by Augur as anyone who stakes rep There are a number of Oracles on the Order platform which sewed to provide a consensus to the outcome of the event The profits you earn are determined by the likelihood that the event will happen based on the crowds prediction Every share has a value of one if, If the odds are even that the event you chose will happen then you would pay half an eighth per share If you’re right you receive one eighth If you’re wrong you lose your half eighth Of course these numbers will vary based on how much you spend on your shares Also remember that over time share prices on the platform will change As people purchase shares the prices likely to rise while the inverse of true if people decide to sell So now that we have an idea of how the Augur platform works.
How you can create market on Augur?
Anyone on the Augur of platform that can create a market based on a real world event You’ll have to pay a small fee to create one but it can be based on literally anything you want Basically when you’re creating a market you’re asking a binary question So for instance you can ask will the price of augur be 100$ at the end of Year 2021 until the market expires which in this case would be December 31 2021 anyone on a planet can place a bet on your market once the market expires the creator determines the answer So long as there are no discrepancies those who provide the correct
answer receive their payouts. If a person chooses to dispute the answer based on a technicality rep token holders behave as judges Voting on the outcome that they believe is correct.
What is the rep token and how does it fit into the Augur platform?
Rep is the Ethereum -based ERC-2020 token which represents reputation for anyone participating on the platform There is a limited supply of rep with a cap total of 11 million tokens These tokens were created for the augur ICO Oh and here’s a fun fact Augur was one of the first few projects to raise an lCO on the Ethereum platform way back in
August of 2015 Those were the days anyways at the time 8.8 million rep was sold to investors while the remaining 2.2 miIlion was split up between the augur forecast foundation and its developers During its CO the augur team raised nearly 5.3 million dollars While you don’t need to hold rep to use augur it is still an essential piece of the order platform bets are made in Ethereum which means rep tokens are not meant to be used as a source of value Rep is short for reputation which is exactly what the token is used for.
However don’t be confused the token is not currency As put by the augur team Rep is a token that comes with both responsibility and rewards it is not a currency However contrary to their statement Rep does have value due to its ability to access trading fees on the order platform rep tokens exist in two states active or dormant the reputation for all users begins as dormant When you choose to activate your rep you are required to report truths on the platform. You can leave your rep dormant However it won't be used for reporting and cannot received trading fees.
For Additional information Now I will Visit Coinmarket.com
| CryptoCurrency | Augur |
|---|---|
| Market Rank | 147 |
| Price | $28.90 |
| Low - high in 24 Hour | 26.77$-29.27$ |
| Volume in 24h | $113,632,180 |
| Marketcap | $317,882,414 |
| All Time High | $99.80 Jan 11, 2018 (4 years ago) |
| All Time Low | Sep 04, 2016 (5 years ago) $0.783 |
| Circulating Supply | 11,000,000 REP |
| Total Supply | 11,000,000 REP |
| Max Supply | No Data |
Advantages and Disadvantages of Augur
Advantages of Augur
- Augur platform is a user Friendly. The results of Augur's forecast markets are picked by users that hold Augur's local Reputation token, who stake their tokens on the genuine noticed result and, consequently, get settlement charges from the business sectors.
- One of the most clear benefit of Augur is that it profits by perhaps the most remarkable and experienced groups inside the whole business.
- Augur is a trustless, decentralized oracle and stage for forecast markets.
- Augur runs very smoothly, and there has been great transparency associated with the Augur project from day one.
- The cost of the project gives more accessiblity openness, lower charges, and more precision to the expected market than ever seen beforehand.
Dis Advantages of Augur
Client loses tokens since it is a betting site. At the point when you anticipate properly, you acquire tokens yet when your expectation isn't right, you lose tokens Up and Down.
The beta site is quite bad and needs a ton of work.
One major issue for Augur is that it has encountered a couple of legitimate difficulties, and there are ideas that legislatures might endeavor to close down the Augur project sooner or later.
Currently Augur is targeting a version to launch in January of 2020 which will bring a comprehensive suite of improvements to the platform While the Current version of orbit uses east for all trading version 2 will point to
the multi-colaterial die coin Additionally Augur intends to speed up its dispute process with version 2 improvements as well In version 1 rep holders had to wait nearly a week to dispute a winning outcome With version 2 holders can dispute immediately Along those same lines version 2 will also include a much faster and improved Oracle system finally version two of the platform will also have a new UI This will include back and lay functionality So similar to the likes of Betfair betting exchange, There are a lot of other improvements augur is makingto its platform.
To an Ethereum wallet Currently the platform supports edge ledger metamask and treasure So what do I think about the augur project Well I think that it really depends on how we look at predictive markets Some think of the project as a glorified gambling platform and as a matter of fact if you visit the site today you’ll find a few sporting events
on which you can predict However the project wants to create a market to hedge against world of adult events in a more comprehensive environment Based on studies from various universities there is value in prediction markets
which is where augur wants to be. The challenge which is the case with nearly all cryptocurrencies is gaining user adoption There are several reasons to be bullish on augur though one of which is its upcoming version two platform It’s led by a strong team and it has plenty of market potential Plus Augur has created a blockchain platform
platform that is difficult to manipulate However that doesn’t mean that there aren’t challenges The biggest of which is gaining interest in a predictive market platform While it has shown promise it is still a long way from where it needs to be Still organ usually resides around the top 50 on coin market cap so it’s definitely a project worth considering Overall the platform shows continual growth over time based on the number of markets Being created on a daily basis This means user adoption is occurring slowly.
When i visit Augur.net
In the Augur.net Website in product, Sportbook is a future project the Augur protocol will be added it soon. and in Markets MMA coming Soon.
END OF HOMEWORK
Finally, I will be thankful to the professor for his grateful explanation in the homework I will try my best to explain Hopefully get a good result again thanks to professor @allbert
Regards,
CC, @allbert