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Hello everyone,
As a part of Crypto Gear's class, I'm very happy to participate in this week's lecture. It's very interesting and I am very thankful to our crypto-professor @allbert explain the lessons on "BLOCKCHAIN ORACLE" clearly with simple words and illustration.

BLOCKCHAIN ORACLE

The composite term BLOCKCHAIN ORACLE can be understood separated and give it complete meaning when related together. This is a wonderful field in the world of cryptocurrencies as it's importance is very impressive. They are

• BLOCKCHAIN
• ORACLE

Let's explore them separately and related them together to understand this field of cryptocurrencies very well.

BLOCKCHAIN

This is the digital ledger where data are recorded. Data are recorded as blocks and link together with the help of cryptographic hash. This means of recording data electronically have been efficiently and extremely important in many human endeavors. It has been very innovative in means of transaction, supply chain management, event prediction, electronic games etc.

Blockchain technology makes the human endeavors especially financial transactions very transparent, accountable and reliable. It create a trustless environment where the clients control their assets solely and makes their financial decisions absolutely without interference. They can conduct transactions freely without intermediaries too. Some of their actions on financial aspects on the Blockchain are very rewarding more than what orthodox means of financial institutions like banks can offer!

ORACLE

ORACLE is very ancient and it stand for a means to bridge a gap between two different worlds. These two world's are:

• Physical world
• Spiritual world.

These two worlds are separate in nature and functionalities but merging them together will results to the great importance.
Humans predominantly a "Lord" in the Physical world can't foresee future events, cure certain ailments, stop huge havoc etc but consult the spiritual world where spirit beings for help on those actions since they are experts where humans can't. The means of the consultation between these two world is achievable via the #oracles.

The major problem that mitigate the relationship between these two worlds is the communication problem. It's of believed that the spirit beings have their unique language that humans can't decodes and the various languages of humans can't be understood clearly by the spirit beings. But the Oracles helps to translate the needs of humans as embedded in their language to the spirit being's language for their understanding. When the spirit beings understood clearly what the human in particular, who consulted it via the oracle, it will be provided and manipulated for him/her accurately.

RELATIONSHIP BETWEEN BLOCKCHAIN AND ORACLE

Blockchain are electronically designed with verified data as linked blocks. As the blocks of data verified, they are linked with other validated blocks of data to form a long "on-chain" data of information or transaction data. For any block data to be valid, it must be verified and added to the long "on-chain" data ecosystem.
While
Data are generated from the offline like physical world and online mostly from numerous web sites.. These data are in the form of numbers, text, charts etc serving as "off-chain" as they are data outside the long, validated "on-chain" data of the Blockchain ecosystem. Blockchain technology requires these data for it's functions. Oracle provides the links between the on-chain and off-chain data.

BLOCKCHAIN ORACLE are projects designed to assist the smart contract (i.e, blockchain protocols) with external information. Since they don't have capabilities to access these vital data needed for their services. They widen the information sources of the Blockchain protocols as they tend to be limited to the information within themselves (i.e, on chain data).

Blockchain oracle are not the data sources rather they are designed to acquire those information from many outlet outside of Blockchain and serves as means through which blockchain will get those data gotten from those outlets via the Oracles.

However there are different types of Blockchain oracles, their various mode of operation, pros and cons, typical example etc as being discussed via this post by our crypto-professor @allbert.

However let's discuss about Augur as one of the Blockchain Oracle with the homework tasks given as slated below forming the subsequent sections of this post.

• HISTORY AND DESCRIPTION. DOES IT HAVE ANY TOKEN OR CRYPTOCURRENCIES ASSOCIATED?
• FUNCTIONALITIES AND REAL-LIFE APPLICATION
• PROS AND CON
• FUTURE DEVELOPMENT AND NEW PROJECT

Augur

This is decentralized blockchain oracle that is built on Ethereum ecosystem. It creates a prediction platform for various types/topics on the Blockchain ecosystem (I.e, smart contracts). It increases the reliability of any case subject by allowing many of it's users to both wage on the possible outcome of the events and to makes their own prediction.

Augur also act as a consensus oracle as it acts as a platform with multiple sources with many information on the subject matter thereby promoting the validity and accuracy of the "truth"

This important software is developed by Forecast Foundation that's founded on the year 2014 by Jack Peterson, Joey Krug and Jeremy Gardner.

DOES AUGUR HAVE ANY TOKEN OR CRYPTOCURRENCIES ASSOCIATED?

YES! It is called Reputation (REP). This Crypto asset that power the Augur network. It can be used to create prediction of any topics, challenge/dispute a known outcome and getting a governance token on this project.

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According to COINGECKO.COM as shown above, REP is ranked #245 with price of $28.71 as of the time of writing this post and market capitalization of $188, 341,792.

REP can be purchased via exchange platforms and earned as a reward for the positive waged system of the Augur.

FUNCTIONALITIES AND REAL-LIFE APPLICATION

Augur is designed as a prediction platform on the Ethereum technology. A trader can experience a real-life betting events on the platform.

As an Oracle, Many smart contracts that run on Ethereum technology depends on Augur to execute their final betting decisions, broadcast their final possible outcomes as reported on the Augur network and ensured that the winners are known and paid.

Augur have a four distinct execution processes. There are:

• Market Creation

As a decentralized platform, anyone can create a real-life betting events like elections, tournament victories, weather outcomes etc. The creator will set a standards/resolution source on which the outcome of the entries/outcomes can be determined. The creator will be rewarded as the outcome is settled by the percentage/amount set by him from the trader's winnings.

• MARKET TRADING.

On the ongoing betting events, users pledge their wages by buying shares on the possible outcome. The price alternate rapidly based on the number of users and the amount used on the waged system.

• REPORTING

The outcome with highest pledges from the users are considered to be the "truth" by the Augur oracle as it will determine those events by bringing in the real-life experience into the Blockchain. Reporting on this platform is done with REP.

• SETTLEMENT

Once a consensus outcome is reached, which is considered to be truth is finalized. Traders whose shares are on the consensus outcome are paid while others loses their wages/pledges.

A REAL-LIFE APPLICATION

Augur can be used to stimulate a real - life event like the possible price of a digital coins. Due to the Volatility of the market, the prediction of the price is always difficult.

A creator can set a betting event on the closing price of the coin "BTC". He can set the resolution outcomes on two different ranges based on the daily price change. Assuming, it will be set at $1.0 and $0.5. traders will buy shares on the both possible outcomes. If the consensus outcome is settled on the $1.0. Every trader on the consensus outcome ($1.0) will be paid while those ones on $0.5 will lose their shares bought with REP.

The consensus outcome can be useful for smart contracts/traders in determining/forecasting of the price of the coin/events. But a creator should make the questions and the resolution sources very clearly understandable.

PROS AND CON OF AUGUR

Augur is a wonderful blockchain oracle with some Advantages and limitations. They are:

• PROS

• DECENTRALIZED PLATFORM

It promote accuracy and reliability as many users and many creators of betting are operating on the platform. Although Augur Oracle reaches the consensus but it is based on the inputs of the users and numerous sources consulted by the platform. The consensus outcome is settled by the Augur is always the truth because it depends on multiple sources against a single source, which will always results in failure.

• ECONOMIC INCENTIVESNESS

REP, a Crypto asset is rewarded to the creators of betting events and reporters on the platform. Earning a coin on the platform is serious motivation and great favor for their users.

THE CONS

• EXPENSIVE
  REP, A crypto assets used on this platform is very costly and without it, the activities of the users are highly limited.

• SLOW IN OPERATION

Creation of interesting betting events, collation of outcomes and reaching of consensus takes time. Augur inquires from multiple sources to reach possible consensus that delays the useful information for their users. It's operations is very slow when compared with centralized oracles.

FUTURE DEVELOPMENT AND NEW PROJECT

FORECAST FOUNDATION is a group of talented and skillful Technology developers designed Augur network for the user's experience on the prediction of the cryptocurrencies. The platform is very wonderful and helpful too.

FORECAST FOUNDATION explained in details what Augur network stand for now and future. To understand more about it. Read this Article.

AUGUR TURBO

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This is new project under Augur. This is the integration of the protocols of Augur, polygon and Chainlinks for the great horizon and wide participants on betting events including sports, football etc. The invention of this great project have really transforms the user's experience. The consensus outcome of those events stimulated are transmitted into the various Ethereum smart contracts.