The Ultimate Guide to Augur Sports Betting on the Blockchain
Blockchain technology has numerous applications other than cryptocurrencies, such as sports betting, and in this article, Brett Richey, CEO of BlitzPredict shares how this works on Augur.
Augur is nothing short of a revolutionary approach to sports betting—a decentralized, peer-to-peer network where users can create their markets and bet against each other directly. This essentially cuts out the need for a bookmaker but in a way that is transparent and fair. Owned and operated by its users, Augur users use ETH and DAI tokens to bet against each other in real time and essentially create their own sportsbooks. Since the betting is peer-to-peer, there is no juice or vig added by the oddsmakers, only a fee added by the market creator. Augur also incentivizes reporters to use its own Reputation Tokens, or REP, to verify the outcomes of events and ensure that they’re being reported properly.
This burgeoning platform will offer sports bettors a lot in terms of transparency, efficiency, and value. Let’s dive into how the Augur prediction markets work and how sports betting will be handled in this revolutionary new system:
How Augur Prediction Markets Work
When you hear the term ‘prediction markets’ you may confused by the breadth of what it suggests. Yes, anything can be predicted and therefore anything can be bet on. Any event that has a measurable outcome, that is. This is nothing new, as Vegas has been known to house some strange bets, and bettors have demonstrated that they’re willing to wager on everything from TV season finales to Super Bowl song picks.
What makes the Augur platform different is that bettors are going against each other directly, and the prediction results are reported by the users themselves. This incentivizes an environment of honesty because users can dispute incorrect reports, and reporting outcomes incorrectly has a financial impact. But how do these prediction markets work when it comes to sports betting? Let’s dive in:
How Sports Betting on Augur Works
To start placing sports wagers on the Augur platform, the first step is to connect an Ethereum-enabled wallet such as a Ledger, Trezor, Metamask, or Edge to your Augur account. This will allow you to use your crypto to create and place bets. Check out the Augur Get Started page for more tips on the initial set up.
Once you’ve got your wallet and app squared away, you can search for the specific event that you want to bet on. This could be the outcome of a game, an over/under bet, or an obscure game variable of your choice (number of technical fouls, anyone?). Then, you check if there are any open prediction markets on the event that you choose. If not, you can create your own market.
Once you’ve found a market that you’d like to play in, you can buy and sell shares. Buying a share is essentially betting that it will happen, and selling it is betting against it. Note that some prediction markets work as ‘yes’ or ‘no’ types of questions, while others are multiple-choice, offering shares for each outcome. ‘Yes’ or ‘no’ markets work differently, with questions such as ‘Will the Warriors win against the Bulls?’. In this case, if you wanted to bet on the Bulls winning, you’d have to find the respective market. Once the event concludes, you simply report the outcome of the event and collect any winnings.
How to Analyze Prediction Markets
Prediction markets function as live trading environments, where you can buy or sell your shares in a particular outcome. This means that if you buy shares in a certain market and then lose confidence in them, you can sell these shares. This adds a dynamic to sports betting that is more like stock trading than anything else. Keeping a close eye on prediction markets can help you see the ebb and flow of a market’s price—you can get a feel for when it’s the right time to buy or the right time to sell. You can even make a profit before the event happens by buying shares early on and selling them if the price goes up. Augur sports bettors may benefit from studying up on the tactics of day traders!
The potential that blockchain brings to the world of sports betting is massive. Augur’s REP tokens system rewards those who honestly and correctly report the outcome of an event, encouraging an environment of truth—a much needed antidote to the manipulation within the gambling industry. When you take the shadiness out of sports betting, more and more users can discover the fun and potential for profit that blockchain-based sports betting offers. The era of open-source, peer-to-peer, trustworthy prediction markets is here, and it’s called Augur.
BlitzPredict: Your Source for Augur Markets
The BlitzPredict platform will make it simple to create, predict, and report on Augur markets. Our streamlined UI will help make Augur markets more accessible and easy to use, so you can focus on making predictions. In addition, our XBP token will allow you to interact with Augur markets more efficiently. All of this comes with the transparency and dependability that the blockchain provides, so you know that you’re working with a platform you can trust. BlitzPredict will allow you to navigate the Augur prediction markets in a superior way.