As part of the author's column, Alexei Voronin, the founder of the decentralized Smart Valley scoring platform, prepared a review of one of the most popular coins on the exchange, Augur (REP), and explained its recent growth and shared his opinion regarding further prospects.

Augur is a bold project for its time, and is based on the philosophy of "crowd wisdom." More specifically, it is a decentralized platform built on Ethereum, with which one can bet on and forecast any event in the world (with a guarantee of rewards in case of success). Like in many other projects, people are motivated by the desire to receive a reward, which is accrued in case of a correctly guessed event. The reward is shared among all shareholders of this project. In the Augur network, shareholders include the token holders and participants called "oracles.” The latter are some form of intermediary arbiters, and their task is to verify that the event really happened in the offline world.

The system's internal tokens are called REP, and their amount determines the authority of the participant within the Augur network. If the user correctly predicts an event, they earn a new portion of reputation, if not, they lose some of their tokens. The system is designed so that everyone who invested in the Augur network is forced to work in nonstop mode. All holders of tokens must constantly report on past events at least once every two weeks. If the participant does not perform even this minimal work, then their REP rating is distributed automatically among the more active holders.

The general idea of ​​the platform is to bet on events inside the Augur network, where the margin is several times lower than with bookmakers, and network control (or any subsequent manipulation with the terms of the transaction) is impossible due to decentralization. Such a scheme excludes the possibility of state influence or regulation by other authorities, creating a completely independent network platform for collective predictions and bets. By itself, the platform will be able to consolidate expert opinions from around the world, attracting brave minds wishing to earn on their awareness or insight.

What News?

We remembered this project due to the recent hike in the price of its tokens. Let us dwell on the latest news, which partly explains what is happening, allowing us to conduct a cursory analysis of the current status of this major project.

The main news was that as of June 2018, the Augur platform for market predictions will move the balance of its tokens from their old smart contracts based on the Serpent language to new contracts based on Solidity. A critical vulnerability was earlier found in the Augur smart contract, raising the issue of the project’s survival. Using this vulnerability, any attackers could potentially modify the time stamp of REP tokens for any date in the distant future, blocking them forever. The multifold collapse of prices of project tokens coincided with the identification of this fatal error within the network.

It is safe to say that Augur quite successfully coped with the problem, radically rethinking the logic of work and moving their code to a new type of smart contract. In general, this is very positive news, as now the project is safe, besides, it will work faster and more reliably. The market met this serious and forced upgrade with great positivity, which in turn caused an increase in the price of the "updated" REP tokens that many sought to buy at the very bottom of the price level after the favorable fate of the project became finally apparent.

Summary

At the moment, Augur is one of the largest projects on Ethereum implemented on the basis of more than a hundred smart contracts (this is the second largest number of smart contracts), and it is also included in the TOP 20 rating of tokens in terms of its capitalization.

The project is going to take over the very "meaty" market of gambling and bookmaking, as it has all of the necessary requirements to do so. It is important to note that this project’s success is also based on the fact that it has a frozen issuance of tokens, and the founders promise that only 11 million tokens will remain in circulation. For the time being, they are keeping their promise given at the ICO stage back in 2015.