What is Gnosis?
The 1990’s was the time when prediction markets were first proposed and it has witnessed tremendous growth in utility ever since. One early form of prediction market is betting on political contests. Over the years, however, the application and nature of prediction markets have extended to different sectors, most notable of which is the financial sector.
Today, we have Gnosis — the first prediction-based, decentralized, permissionless platform that works using smart contracts where anyone can use to predict event outcomes. With Gnosis, it is possible to make transactions on the sale of binary positions on random events in the predictions market.
Gnosis (GNO) Value
Two kinds of token can be found on the platform: They are Gnosis (GNO) and WIZ. GNO are ERC20 tokens which the team sold in its ICO. Only 10 million GNO tokens were created. Out of these, only 9 million are for sale while the rest have been reserved for the platform.
When GNO is unloaded, WIZ tokens are received. To do this, your GNO must be locked in an intellectual contract. The amount of WIZ received depends on how long the locking period lasts, as well as how many WIZ tokens are on the market. The aim of the team is to have more WIZ available than the monthly average of WIZ used in the previous 3 months. The purpose of WIZ is to be a stablecoin, which is why its value is fixed at $1. WIZ can be used to pay commissions and as the base capital needed for trading on the market.
How Does the GNO Token Work?
The way the GNO cryptocurrency works is highlighted here. During the crowd sale of ICO with smart contracts, participants of the event receive coins. Once the auction ends, the whole token volume is locked for a long period of time. This locking period can be up to six months. Within this time, each participating user receives a certain percentage reward in WIZ. How much reward is received depends on lock duration. Also, a depositor can receive up to 30% of tokens right after the auction ends. Bids can be made with GNO as well as used for Gnosis services on the platform.
Gnosis’ value remains stable but low. In Spring 2017, Gnosis held its largest auction. The platform sold more than 400 million coins and raised $12.5 million. Today, 1 GNO is equivalent to $15, which means the ROI is -70%. In any case, Gnosis is still developing the project and it has a huge potential.
Gnosis (GNO) Blockchain Review
The Gnosis mainnet includes 3 main components: They are:
- Core: The core performs the basic functions of token regulation, provides digital assets decentralization through a distributed computer network, and is also responsible for the convenience and functionality of the interface of the platform. User transactions have no fees when using the core technology.
- Services: Derived from the core, this layer serves as a service with paid tools to set up the platform and introduce third-party technologies, be it other types of cryptocurrency or a payment system.
- Applications: If a user wants to change anything on the event interface, the user can use the special section library. This is where most of the network of smart contracts are concentrated.
According to the Gnosis whitepaper, they use DutchX’s decentralized trading protocol. Gnosis doesn’t trade all day long, but rather sell orders are collected before auction starts and cleared as soon as it finishes. This protocol follows a smart contract, offering tools, applications, and APIs. This is why DutchX stands out as a fair and reliable protocol for token exchange. The protocol’s code can be found on GitHub.
Gnosis (GNO) Trading History
Gnosis started successfully reaching an all-time Bitcoin price high of 0.141 BTC (~$357) in July 2017. However, the GNO price has been up and down. In December 2017, it experienced an upward movement. The same happened at the beginning of January 2018 along with the rest of the market. However, its price relative to Bitcoin has remained unchanged.
The token has, at the moment, flatlined at about $10 (~0.00292 BTC) which is 98% below its all-time high. With just 10% of tokens in the market, this doesn’t spell good. With the team selling their majority share, it is expected that the price could fall further with an increase in supply.
Contrarily, GNO price may get some support with product releases, as the tokens must have increased by then.
The main competitor to Gnosis is Augur. Having started earlier, the Augur team also aims to create a platform based on prediction markets. There are arguments that with a fairer token distribution and decentralized oracles, Augur is the less centralized of both.
Another difference between the two is that, while ETH is used on Augur for market trading and oracles reporting event outcomes are rewarded with REP, the Gnosis token structure takes a different reward structure as outlined above.
Gnosis (GNO) Roadmap
For the past two years of its existence, the Gnosis development team has been implementing a few important goals. Its most outstanding milestones from the roadmap show its implementation of the DutchX protocol:
- Q4 2017: Announcement of DutchX Protocol
- July 2018: Smart Contracts for DutchX goes live on Mainnet
- December 2018: slow.trade live on Ethereum Mainnet
- February 2019: DutchX 2.0 smart contracts began use on Mainnet
A notable achievement was the introduction of online voting on Twitter. Gnosis sought the independent opinion of users by introducing vote casting on social networks. Future plans for the project include dxDAO development. dxDAO is a decentralized governance system derived from the Holographic Consensus framework and is based on the Genesis protocol. This decentralized application will govern the trading protocol. Likewise, the team is currently working on a mobile version for the Gnosis platform.
Gnosis X was launched in 2018 to encourage more developers to start building DApps on Gnosis. The creators of Gnosis hope this challenge will provide an avenue to create an innovative prediction market use case on Gnosis. Participants (individuals or teams) are expected to complete the development of their DApps in three months. A jury that consists of members of the Gnosis team, as well as blockchain and business experts, will judge the submissions.
The team is developing the Gnosis Y: an open-ended developer program that will focus on the basic questions regarding blockchain technology and applications on prediction markets. The goal of the team is to further support the community that creates and promotes decentralized prediction markets on Gnosis.