Should you buy Gnosis GNO cryptocurrency?
ChristopherGnosis aims to provide an open-source infrastructure for prediction markets built on Ethereum.
If you’re unfamiliar, a prediction market is a type of marketplace, not unlike an exchange, except instead of trading assets, users trade the outcome of events. Often restricted by regulators, it is believed cryptocurrencies hold the potential to decentralize the operation of prediction markets, opening their access across the globe.
This is the idea behind the Gnosis prediction market platform, a blockchain enabling users to trade cryptocurrencies that are representative of event outcomes on an open market.
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As the events unfold and outcomes become clear, Gnosis tokens gain or lose value depending on what was predicted by the user.
Gnosis’ goal is to build an infrastructure for many decentralized applications that can act as forecasting tools, sources of information and standards for predictive assets in this market.
By allowing access from any party to its platform and aggregating public opinion in an uncensored source, Gnosis believes it can build a reliable forecasting tool that could have applications for decision-makers in finance, government and insurance, among other sectors.
The Gnosis software uses two cryptocurrencies, GNO and OWL, both of which help ensure its transactions are reliable and distributed. Today, Gnosis continues to make progress toward its ambitious goals, but it is by no means alone, facing market competitors like Augur (REP).
How does Gnosis work?
Gnosis uses three separate platforms to achieve its vision.
- Apollo – A prediction market platform where users can create their own tokens (tokens that represent information, incentives or ideas)
- DutchX – A decentralized exchange where users can trade and auction off their tokens
- Gnosis Safe – A cryptocurrency wallet and a browser that interacts with ethereum apps.
Additionally, there are three layers to Gnosis’ architecture that unites these platforms together.
- Core Layer – The foundation of the platform, it contains the smart contracts powering the events, the outcome tokens, the settlements, and the market mechanisms
- Service Layer – Offers additional services such as chatbots, payment processor integration, and stablecoins. This later also controls its trading fee model. Gnosis anticipates most consumer applications will interact with features on this layer.
- Applications Layer – Contains the prediction market dapps built on Gnosis. While Gnosis builds some applications for prediction markets, the majority of applications accessible in this layer are built by third-parties who can charge users for their services.