Augur, the decentralized prediction market, launched its alpha version on Tuesday.

Augur alpha

Augur users can wager on the future — whether on the outcome of a soccer match or on an election. If they guess correctly, they win money, if they don't they lose. By aggregating these bets in advance of an outcome, the idea is that users can make accurate predictions about the future, by tapping diverse opinions.

Lead Developer Joey Krug said:

"This is the culmination of eight months of work since we started writing Augur, and we're glad to finally release something people can play around with and give us feedback on."

In the alpha version, users can test out the prediction market platform. They can wager in an event, create an event, and receive payouts from successful bets. But more advanced combinatorial markets, which are used for more specific information, will come later, Krug said.

The team wants as many eyes on the alpha version as possible, to test the platform and provide feedback.

"The ability for the general public to check out Augur and try it for the first time is really huge for everyone involved," said Director of Marketing Tony Sakich.

Wisdom of crowds

The platform, which runs over the Ethereum network, uses a principle called "wisdom of the crowds," partially inspired by James Surowiecki's book by the same name. The upshot is that crowds can often predict the future more accurately than any one person or expert can.