An ethereum based blockchain startup, Augur, launched on July 9, 2018, became the center for betting and predicting deaths of various personalities across the world. But if the platforms of such decentralized nature get deployed across the world, will the governments be able to stop them?
Quite recently, the most notorious of the bets placed on the platform were regarding the death of United States’ President, Donald Trump. Users across the platform have the option to buy or sell shares with ETH (ethereum) to their bets on President Trump dying. If that particular event occur, the user betting in favor wins and earns profit, otherwise, the opposite happens.
But in the hindsight of all this, can’t the government, the ruling force of such a dominant country like U.S., stop it?Why any action has still not been taken by the upper bodies witnessing all this happen?
The answer: they can’t.
In order to understand the answer, we have to take a deeper dive into the world of blockchain, a world built upon on the idea of not having a single authority ruling the entire arena. In the blockchain world, their is no concept of a single authoritative platform that can be provided to someone and then taken away from him/her. The entire vision behind the idea of blockchain is decentralization. Decentralization divides the entire power among its user equally, so their is no single authoritative power controlling the flow of events. Due to this exact reason, there is no single user, or authority, for the government to pinpoint at and place restrictions upon.
Talking to Fortune, regarding Augur’s independence from the government’s hold, one of the major investor of Augur, the managing partner of Multicoin Capital, stated:
Augur is the first one that the governments can’t stop it even if they wanted to.
Augur also boasts the decentralized control framework that it has deployed across its platform. As stated on its official website, it is mentioned:
Decentralized technology means decentralized control. No one person can single-handedly change Augur or shut it down.
Also, this blockchain-based platform allows its user across the world to create and place bets on different kinds of events happening across the world, not just assassinations. These predictions might be related to weather, politics or even the future of different companies. On the platform, users from around the world are betting whether a certain event will happen or not in a given time frame and being blockchain based with no central authority controlling it, even the governments cannot interfere in this process.
The profit from this platform is solely based on the occurrence of some particular event. If a user believes that the likelihood of certain event happening is quite high, he/she buys shares about that event with ETH. If someone believes that the likelihood of a certain event happening is very low, the user tends to sell its previous shares.
The major concern that Augur currently has is no government intervention, which doesn’t seem likely, owing to the decentralized control given to the users on the platform. As this platform is ethereum-based, the scale of the platform, with the number of its users growing, might become a problem as we saw the same with CryptoKitties, a platform employing the similar ethereum framework underneath.
It’s pretty obvious Ethereum today doesn’t scale. We’re okay with that. It’s good to have slow growth and make sure there’s not security vulnerabilities. It’ll be a few years before Ethereum will be scalable. Joey Krug, co-founder of the Augur
All in all, with the emergence of blockchain technology based platforms across the world, the limitations might be associated with platforms upon which the projects are built, but when it comes to the hold of governments can have on these projects, this projects transcend the norm by decentralizing the authority from a single entity to multiple entities, making it difficult for the governments to control them.