Braving the Wind and the Waves, DeFi Earns GNO Great Fame Overnight
Written by the CoinEx Institution, this series of jocular and easy to understand articles will show you everything you need to know about major cryptocurrencies, making you fully prepared before jumping into crypto!
2020 is destined to be an unusual year. It has witnessed the outbreak of Covid-19 all over the world and the economic crisis in many countries. The financial markets have plunged into a gloom, especially the market in the US where trading was temporarily halted five times in a row, an incident rare to even Warren Buffet, the godfather of American stock market. The cryptocurrency world has not been spared as many blockchain companies failed to survive because of the broken capital chain, causing a domino effect; investors in this world even started to hold negative towards cryptocurrencies after the big crash on March 12, which even dissuaded many outsiders from getting in…
In a word, the first half of 2020 is really too hard!
Many projects in the blockchain industry are struggling to survive, and those survivors deserve our praise. Among them is DeFi that was once popular.
DeFi, developing at the critical time, is destined to ride the wind and waves this year, ushering in all opportunities and challenges. In fact, the crypto community has been concerned about DeFi since 2019. With its exploration of financial applications, DeFi has derived prediction markets, insurance, payment platforms, asset management, and identity information authentication from financial scenarios, in addition to stablecoins, borrowing and DEX.
Today we are going to talk about the decentralized prediction market, part of DeFi’s product matrix. It looks a bit high-end. After all, not everyone can handle its slogan, “redistribute the future”. There are two representative players in this market segment, the leader Augur and the latecomer Gnosis.
Gnosis means knowledge in Greek, also representing prophecy. The project deserves its name, which is to predict the future. Gnosis is a decentralized prediction market built on the Ethereum protocol; like Augur, it is one of the most compelling projects in the Ethereum ecosystem.
Gnosis provides an open platform for people to predict the outcome of any event, which greatly simplifies the creation of customized prediction market applications and lowers the threshold for users. Its development can be traced back to the early days of the establishment of Ethereum. The team is led by Martin Koppelmann and Stefan George, experts in the prediction market, and an extraordinary advisory team represented by Vitalik Buterin, the Ethereum founder, and Joe Lubin, founder of ConsenSys. After 2 years of uninterrupted research and development, Gnosis has brought together the latest blockchain technologies such as Oracle, State Channels, and Futarchy. Its “Crowdsourced Wisdom” platform allows anyone to predict the market at any time, and those with accurate prediction can receive rewards. (PS: The age of the prophet is coming!)
In addition, Gnosis has also opened its own platform to create Dapp (decentralized applications). By the way the beta version of Gnosis is one of the first Dapps based on Ethereum and was released in August 2015.
In April 2017, Gnosis issued its token, GNO. Unlike the traditional way of token sale, the Gnosis team chose an improved Dutch auction: 10 million GNOs as planned, up to 9 million GNOs will be sold through auctions, and the remaining tokens belong to the team.
In the improved Dutch auction as aforementioned, the bidding price of the auction target decreases in sequence until the auction termination condition is triggered. Contrary to the case in current mainstream token crowdfunding pricing methods, the price of GNO will be lowered for each new block. During the auction, participants can send ETH to the token address released by the official, promising to purchase GNO at or below the current price upon submission. When the auction termination condition is triggered (i.e. where ETH in the equivalent of 12.5 million US dollars is raised or 9 million GNOs sold), the final GNO price on the block will be determined as the GNO auction price.
Under this mechanism, all participants in a successful bidding have the same cost of obtaining each GNO, and the final auction price of the GNO will not be higher than the price promised by the participants in the bidding.
In fact, the Gnosis ecosystem consists of two tokens: GNO and OWL. GNO is a local token in the Gnosis system. Its main purpose is to generate OWL — users can obtain OWL by locking the GNO in a smart contract.
Some people claim that Gnosis has innovated in its effort to emulate Augur and even excelled the latter by virtue of the introduction of Oracle, which improves efficiency and expands the scope of use:
1. Gnosis provides an open platform for people to predict the outcome of any event. At the same time, the automatic execution of Oracle and the smart contract enables players to enter the prediction market more flexibly and freely, which not only simplifies the creation of customized prediction market applications but makes it even more efficient;
2. Oracle and smart contracts can automatically execute the prediction market, bringing it a grander vision that Gnosis participants may be no longer individuals; in the Internet of Things, the information collected by sensors can also enter into the blockchain as an information asset for prediction through Oracle, further expanding its scope of use.
With the popularity of DeFi, GNO rose to fame overnight. According to the data shown on feixiaohao.com, GNO rose 94.56% this April, its community has also gained growing attention, and followers on Twitter and Reddit have surged in a month. Just like LBC, an obscure cryptocurrency that suddenly went viral, GNO deserves its fame on the one hand, and, on the other, it happened with a help of DeFi.
At present, GNO has been listed in the new first-tier exchange CoinEx, providing users with more trading options for DeFi-related projects. As DeFi braves the wind and waves, how will GNO seize this opportunity? Will its trading volume and popularity continue to rise? Welcome to share your opinions in CoinEx!
About CoinEx
As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment and has obtained a legal license in Estonia. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading, and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.
Website: https://www.coinex.com/
Twitter: https://twitter.com/coinexcom
Telegram: https://t.me/CoinExOfficialENG
Click here to register on CoinEx!
