by Lumai Mubanga
Since the inception of Ethereum as a high-level blockchain platform for applications development, many have ventured into personal or organizational investments on this platform. While many are still on the sidelines, taking caution and a wait and see attitude, many have taken a step further to invest in this platform with remarkable results.
Why cautious Investment
However, investment on any platform is a risky undertaking. Each investor must take personal responsibility to understand the potential benefits and risks involved in any undertaking. This article will look at one high profile applications on Ethereum, namely; Augur, excluding Digix and Maker. These are decentralized applications, otherwise known as Dapps on the blockchain. By the end of this short article, you should be able to weigh if you can be a potential investor in these Dapps.
Why many are investing in Dapps
Dapps are cryptographically secured apps. Built on decentralized consensus-based networks like the Ethereum network, they are some of the most trusted apps because a lot of potential and malicious activities are not possible compared to open networks on the internet. Secretly tempering or maliciously changing code to disadvantage other application users is next to impossible.
Besides, these are globally supported networks which are not run on a single server but their computing power is spread across all nodes on the network. The risk of having a website disappear is therefore low or not possible. This makes them secure and trusted by many. one of these high profile Dapps is the Augur.
Augur a protocol for cryptocurrency
Augur is a Decentralized Prediction Market on the blockchain. What makes it different from other prediction markets is that there is an application of some of the principles of blockchain in its business model. For example, its transparent exchange has no limits on what a user can bet on. You can bet on literary anything.
Augur is also global and not regional. This is because of its blockchain presence and decentralized nature. Because of its global nature, it is not controlled by any individual entity, but community-owned and operated. The augur protocol can easily be accessed by anyone anywhere in the world. This can be done through mobile devices and desktop computers.
Guaranteed Automated Payments
While some betting sites have abruptly closed or failed to pay the winners on a particular bet, transactions on augur are controlled and automated by smart contracts. The immutable nature of these smart contracts ensures that no malicious activities are done to disadvantage any potential winner. Compared to other betting sites were parameters are changed to alter the outcome of a bet, Augur is protected because any changes will demand an entire redeployment. This guarantees all participants that as long as they have won, they will be paid promptly without interference from a person or organizational controls.
These are some of the reasons that have made Augur a global, no limit betting platform that many have come to love. Do you think that this is for you? can you trust the power of blockchain powered Dapps?
The decision rests on the reader bearing in mind that every investment has potential benefits and risks. Blockchain is a new platform with a lot of potential for growth. Why not start slowly and see how you may benefit? Or will you continue watching on the sidelines? The choice lies squarely on you! But remember, life is a risk on its own.