One of the oldest ICO will soon open its platform to users.
One of the most talked about cryptocurrency projects, Augur, may soon offer its users to bet on the success of the project.
Augur was established in 2015 the company Forecast Foundation and is a crowdsourcing Protocol predictions. The project has helped more than 5.5 million dollars from the sale of REP tokens long before the announcement of ICO. Recently was published a new edition of the White book project, and the system, which will allow users from all over the world to bet on the outcomes of different events that will be launched in test mode.
But, although Augur is to allow people to bet on any event (the outcome of sporting events to the dynamics of financial markets), its creators say that immediately after the launch of the platform, users will be able to create only one market.
That said we head of the Forecast Foundation Kysar Tom (Tom Kysar):
“In fact, we run the Augur with only one market: “Crack do Augur?”or “Will discovered a critical vulnerability in Augur until a certain date?»
This move looks risky, but, according to Kisara, it’s worth it.
In addition to this bet, the team of Augur runs a program of bonus payments for detection of security vulnerabilities in the platform, filling the market is betting that it won’t be compromised. Therefore, confident the hacker will be able to play on the opposite side of these bets will be hard to seek out vulnerabilities in the Protocol, hoping to hit a big jackpot.
“According to the auditors, our project will likely become the largest and most complex project on Ethereum, which someone attempted to run, and it would be naive to believe that we will be able to start work 6500 lines of code in Solidity without mistakes,” said Kiser.
To give external users enough time to search for potential vulnerabilities, the project team will launch the Augur at first only in the test mode, which will last about three months.
Now, Augur is the second round of audit of smart contracts, and the project team States that the launch will take place within a few months after its completion.
At the time of launch, the platform will allow real people to perform the functions of the market “reporters”.
New markets need a credible reporters that could determine the outcome of the bet. Most of these reporters are likely to be bots of one sort or another, that will keep proven developers (threat assessment on the type Polyswarm).
However, as stated in the White paper, the system provides for 2 levels of challenge in the event that a participant disagrees with the result.
At the most basic level, all participants Augur can Express their opinion on the certain market. If the level of controversy reaches a certain value, the Augur will be divided into new “universe” for each possible outcome, and it was at this point in the process of determining the result includes the procedure of crowdsourcing.
An attacker could try to make a wrong decision, but the model Forecast Foundation is built in such a way that it should not bring him benefit.
In each case, when no users were involved in deciding the outcome of an event, they need to make security Deposit in the REP tokens. Every time they bet on the correct outcome, they profit.
“Among other things, the system changes the value of REP in one direction or another, thereby regulating the Commission of reporters, says Alex Chapman (Alex Chapman), lead engineer contracts Augur. – While the value of REP does not exceed the target level, the Commission will be weekly rise, and Vice versa.”
In the process of working on a project, the team realized that there are limits of the ability distribution. At first, we wanted to make it so that each result was determined by the sum of the views of market participants. This algorithm is still used as a spare in the resolution of market conflicts, but the team came to the conclusion that the centralized decision making compensation would be more effective.
“Collective (distributed) definition of a result is, in fact, the worst case scenario.»
Releasing the thread of control from the hands of
From the experience of launching the first market with bets on whether Augur is compromised, his team will be able to extract a lot of valuable information, and if necessary, return to the processing code.
Then it will be made full commercial launch, which, according to Kisara, will be an extremely important point, both from a technical point of view, and organizational.
“As soon as Augur is fully operational, from this point we will have no more control them than any other user,” he says.
Although Forecast Foundation will continue to work on the client part and the code, it will not be possible to force the participants to use their modifications. From this point Augur will belong to the world, which is very important, as all previous prediction markets have been closed or extremely limited authority.
“If there’s a critical vulnerability, the regulators will try to use it to close the whole system,” says Kiser.
We do not intend to limit the system, or somehow adjust it.
Instead, people will have the opportunity to invest in Augur as many ethers as they want.
And according to Chapman:
“In the end traders themselves will decide to trust or not the platform security system based on such assumptions and formulas”.