Cryptocurrencies have emerged for a vast array of uses, some uses of which technology not even as much as hinted as possibilities. There are digital tokens and platforms geared towards ridding the world of disease; others have been created to empower minorities. All in all, the trend is to create digital currencies and their accompanying platforms to serve some higher function beyond the standard means of exchanging value and trade.
One such cryptocurrency is Augur (REP), a digital token and platform that is presented as a prediction market protocol. Believed to be the future of forecasting, REP has emerged as one of the leading platforms and currencies that actually takes prediction and forecasting to the decentralized model found on the blockchain. The mantra is that the prediction protocol is owned by the people who use it and the uses that REP can be deployed under are very intriguing indeed.
So far developers for the Augur platform have cited four potential uses cases for the deployment of the blockchain based technology.
The first use case is political forecasting where developers believe that using the platform, users can turn political knowledge into predictive power. Of course the predictive nature of the platform leads to one tantalizing conclusion, betting. Indeed that is precisely what developers have outline for the political forecasting capabilities inherent in Augur. By using the knowledge gained, users can start trading on the potential outcome. This use case is not very narrow either as developers have outlined a good swathe of instances that the political forecasting technology could be deployed for. There are for instance, potential policy decisions and other major political events such as budgets.
Augur (REP) is also seen as a potential platform for hedging against events that would be deemed unfavorable. These include events such as earthquakes, tornadoes, hurricanes. But it’s not just natural disasters that Augur provides hedging for; those people looking to protect themselves against market crashes and other economic upheavals can do so by using the platforms predictive technology and betting against those events occurring.
Companies looking to make sounder strategic decisions can also tap the predictive power of Augur (REP). By using the predictive nature inherent in the platform, business owners can make more accurate decisions about areas like product sales, marketing, production as well as project and program timelines and completion.
Developers have created a platform that functions over a cyclical process-driven standard. Users start off by choosing an event based on the accepted use-cases outlined. From there users create a market depending on whether such a market already exists for the chosen event. Once the market is set up, users can begin to buy and sell shares on the outcome of the event. The traditional meaning and function of going long and short apply in the cycle and users are able to make flexible decisions based on what they feel will become the ultri8amte outcome. Once the outcome is achieved, users report the outcomes and then collect their winnings.
The model has so far attracted a lot of attention from users and Augur recently announced that betting volume topped $1M for the first time.
The token itself appears to be climbing steadily and is currently trading at around $29.99. Although the token is down 13% over the last 30 days, a spike to $37.32 which occurred on July 3 helps to show the attitudes that traders and investors are taking in the breakthrough platform. The all-time high for the token is $108.17 and REP currently has a market cap of $392.84M