This is a GOOD thing and one of the primary reasons I was enthusiastic for Ethereum long before its existence. Private currencies are a great step forward for decentralization. There are almost 500 ERC20 coins now in use on the main network, several with interesting concepts. By next year I bet we see over 2 thousand.
Now the question for the world is… which currency do you trust?? Here’s a hint: currencies that say “In God We Trust” or are named “Doom Best Coin” probably shouldn’t be at the top of your list.
One of the most exciting components with Ethereum is the Augur project, or as I call it, “The Bet on ANYTHING” market!”
Yesterday the project released an updated White Paper found here. The technical details are not for most people, but what is exciting is being one step closer to the possibility of two strangers on the internet being able to place trustless bets on almost anything!
The word “betting” has a negative emotion attached to it in American culture, but being able to assign personal stake in prediction models is incredibly valuable. Indeed it is perhaps a much-needed component in our political system.
As I type this, one of the most hated presidents in American history is addressing the nation in a Statue of the Union. The internet is filled back and forth rage about who is “right” and “wrong”. As the fury between two groups grows, perhaps the ultimate test for the truth can be found if the two opponents can form an agreement of what their disagreement is, and bet on it.
Consider how this could be used in economic debates in uncovering the truth. Politicians (particularly in my home state of California) are incredibly dishonest at presenting understated costs of projects to voters around elections. Augur presents an option to expose what politicians truly believe:
“Do you really think that this project is going to be under what the budget states? Let’s bet on it!”
“Do you want to bet if this is going to truly be a temporary tax?”
Additionally, consider how this tool could be used to hold a politician at their word. During a campaign, candidates could leverage this tool to offer promises to voters: “I’m Joe Nobody running for US Congress and I will not vote in favor of any budget that is not balanced, and I’ve placed a $100,000 bet to assure this in the Augur network!” Such a statement would be much more meaningful than the standard “I promise, I’m a good person!” assurance we get from current candidates.
Hopefully, this goes live soon. Here’s an older video showing its possibilities from 2015: