Augur is a new service delivered on Ethereum. It is a Decentralized Application
Imagine a world where pundits and politicians were judged not on the loudness of their voices or the brazenness of their statements, but on the merit of what they said.
Envision a day when forecasts, made by anyone, could be put to a market filled with rational actors seeking to earn a reward based on the truthful outcome of that prediction.
Introducing Augur, a fully-decentralized, open-source prediction market platform, intended to revolutionize forecasting, decision making, and the manner in which information consensus is collected and aggregated.
How Augur Works
Using Augur, you have the power to create a prediction market on any subject you’re interested in. You receive half the trading fees from markets.
After an event occurs, the correct outcome needs to be selected to pay you out. Instead of relying on third parties, we use the crowd to report on these outcomes. This decentralized consensus on events provides the world’s first distributed oracle system. And reporters get half the trading fees too (based on how much reputation they own)!
Any reporters who disagree with the consensus lose reputation. Our reporting system relies on the idea of “schelling points.” Essentially, the solution people will tend to agree on is the most obvious one, or in this case, the truth.