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the blockchain startup Augur is exploring these ideas. The firm has built a decentralized, cryptocurrency-based prediction market on top of Ethereum, where players place bets on an outcome of some event or other, the result of which depends on confirmation by certain individuals. Those confirming parties will bet their rep tokens that they are telling the truth, and if a majority agrees that they are, the system returns the tokens and pays them in cash. There’s a risk that the majority could game the system against the truth sellers, but there are other checks and balances in place to incentivize honesty on both sides. In a Wired article about where this idea could go, Cade Metz speculated that it could incentivize verifiers with rep-denominated skin in the game to either stand up or shoot down the statements of politicians, providing a service that news organizations could pay for. If it can actually be built, a system that aligns profit motives with truth-telling would be pretty helpful.
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Michael J. Casey (The Truth Machine: The Blockchain and the Future of Everything)