Augur overview using the Feynman Technique
This post is one of a series of posts I am writing where I try to apply the Feynman Technique to a number of different crypto token projects. You can find the rest here. None of this should be taken as investment advice. They are just meant to be simple introductions to the projects.
Augur is a system for making bets on the outcome of real-world events that doesn’t require a third-party to manage it. It does this by creating a software program that allows anyone to create an event to bet on and anyone else to decide whether or not to place bets on that event.
Anyone in the world can choose any type of event they want to bet on. They create the event and say what all the possible outcomes of that event are. This allows anyone else to place a bet on any of the possible outcomes.
The important differences between traditional betting markets and Augur are there is no one deciding what you can and cannot bet on and the reported outcome has to be approved by the network, not decided by a single person. Augur tokens are used for verifying the outcome of an event and for voting on potential changes to the network in the future.
By combining a lot of people making bets on an event in public and the idea of “the wisdom of the crowd”, which says that the average prediction made by the masses is more accurate than any expert’s prediction, you could get a more accurate view of what might actually happen for any single event. So in addition to being able to bet on anything, the Augur market could be used as a forecasting system.