What is Gnosis (GNO)?
Future of GNO Cryptocurrency and know how to buy GNO

#1 - What is Gnosis (GNO)?

Prediction markets were first proposed in the 1990s and since then, have witnessed considerable growth in their utility. An earlier form of a prediction market can be observed as betting on political contests. Over the years the applications and scope of prediction markets have extended to various sectors, especially the financial sector. Here comes Gnosis! Gnosis aims to build a decentralised, permissionless, and trustless prediction platform, and serve as a vehicle for aggregating relevant information about the expected outcome of an upcoming event.

Gnosis (GNO): The Basics

  1. Gnosis is an open-source, decentralized prediction market built using the Ethereum blockchain. Apart from being a prediction market, it is essentially an infrastructure which facilitates the creation of diversified market forecasting apps.
  2. Three core objectives drive the Gnosis platform:
  1. Providing the world’s most efficient forecasting tool.
  2. Incorporating customized information searching in the Gnosis platform.
  3. Setting a standard for prediction assets.
  1. GNO token is the primary cryptocurrency of the Gnosis platform. The platform also has a secondary token called WIZ, which operates internally. The GNO token works as a license to access the Gnonis platform.

Development of Gnosis

  1. Gnosis was founded by Martin Köppelmann and Stefan George during January 2015 and incorporated into an international company: Gnosis Ltd in March 2017.
  2. During April in the same year, the company launched its Initial Coin Offering and raised more than $12 million[1] within the first three hours.
  3. On May 1st 2018 GNO started trading in global cryptocurrency market followed by the creation of Gnosis Service GmbH in Berlin during same month with the purpose of sharing development work.

 

#2 - What are the benefits of Gnosis (GNO)?

Gnosis Technology

Gnosis is aimed at disrupting the largest existing industries by creating a genuinely decentralized market prediction platform. It is built on top of Ethereum blockchain, which enables it to take advantage of Ethereum’s advanced smart contracts. Ethereum protocol guarantees a secure and transparent ecosystem by eliminating the need of involving any third party.

Gnosis Platform Layers: The whole Gnosis platform is divided into three layers, a core layer, a service layer, and an application layer.

  1. Gnosis Core Layer - Gnosis Core layer is the foundation of Gnosis. This layer provides the smart contacts functionalities to Gnosis which includes the Oracle standard, management interface, creation of the event token, settlement, and market mechanism. The core is open-source and is used for free.
  2. Gnosis Services Layer - The Gnosis services layer includes tools which are vital for the consumer application developed on Gnosis. It is built on top of the Gnosis Core Layer and enables additional functions such as new market mechanism, application customisation tools, stable coins, state channels, Oracle platform. This layer charges trading fees for the services provided by Gnosis.
  3. Gnosis Application Layer - At the top of the Gnosis service layer lies the Gnosis Application layer, which primarily contains front-end applications. Not all applications are necessarily developed by the Gnosis, some applications are likely to be developed by third-party developers and may use alternative business models such as advertising, market making, and information selling. It is important to note that a third-party developer may charge additional fees for using their applications and services.

Token Model & Mechanism

Gnosis Token Mechanism

  1. The Gnosis platform has two ERC-20 based tokens at play — GNO and Wiz. GNO token is the primary utility token of the Gnosis platform and can be traded on cryptocurrency exchanges, while WIZ is used internally on the platform and is untradeable on exchanges.
  2. GNO tokens were created in a fixed supply of 10 million tokens, which means that the Gnosis platform does not support GNO mining. Unlike WIZ, which has a fixed value of $1, GNO derives its value from the adoption of Gnosis platform. A 0.5% fee is charged by the Gnosis platform for the creation of predictive assets.
  3. Instead of GNO, the Gnosis platform uses WIZ as a means for paying various fees levied in the application layer and the service layer. WIZ can only be generated by locking GNO tokens for some duration (one - twelve months), which means users can obtain enough GNO tokens in a one-time purchase.
  4. The numbers of possibly generated WIZ tokens are proportionate to the use of WIZ tokens. Users will know the potential number of generated WIZ before they lock their GNO tokens. After locking the tokens, 30% of the WIZ are generated immediately, while the rest 70% are generated gradually during the lock-in duration.
  5. The WIZ generation rate is controlled by an algorithm and implemented via a smart contract. The algorithm is responsible for making sure that WIZ tokens are generated in a balanced way, which means the total number of WIZ should always be the 20 times of the monthly average use.
  6. Although WIZ is the prefered means of paying fees, users also have the choice to pay fees using other crypto tokens. The fee paid in other tokens is transferred to an auction smart contract, where it is sold for the GNO tokens, which will be permanently locked in the same contract. The percentage of the locked GNO tokens determines the amount of deduction on fees.

Use Cases

  1. The Gnosis prediction platform serves as a global liquidity hub which allows developers to create diversified, decentralized apps.
  2. Gnosis has developed an ecosystem where information aggregated can be used to predict the outcome of an event in various areas such as Futarchy/Governance, price discovery, insurance, financial markets and many more.
  3. Gnosis has been closely working with various law firms to make the platform compatible with different jurisdictions across the globe.

 

#3 - How to buy & store GNO?

How to buy GNO?

Gnosis has a fixed number of pre-minted GNO tokens, and does not allow GNO mining; The only way users can possess GNO is through trading.

  1. GNO Token is available to buy or exchange in several global markets including Kraken, Bittrex, Upbit, Poloniex, Mercatox, and several others market. Most markets have paired GNO with either BTC or ETH.
  2. While buying GNO tokens, users are advised to use CoinSwitch, the largest cryptocurrency conversion platform. CoinSwitch allows users to compare and trade cryptocurrencies at the best rates available, from a single portal. CoinSwitch can trade more than 300 cryptocurrencies across all exchanges.

How to Store GNO?

Official GNO Wallet- GNO Safe. Image source: Gnosis

  1. GNO is an ERC-20 type token, and can naturally only be stored in wallets which are ERC-20 compatible. Gnosis provides its own official - called GNO MultiSig Wallet.
  2. Now a new improved and redesigned wallet has been introduced dubbed GNO Safe.
  3. A new official GNO wallet is available in two editions: the GNO Safe Personal Edition and the GNO Safe Enterprise Edition.
  4. Apart from the official wallet, GNO tokens can also be stored in any ERC20 compatible wallets provided by third parties. Some of the best options are: MyEtherWallet, Ledger Nano S, and Trezor.

 

#4 - What is the future of Gnosis (GNO)?

Trend so far

Complete Analysis of GNO | Live Gnosis (GNO) Price Charts & Predictions

  1. With a market cap of over $48 million, the GNO token is ranked 149th in global cryptocurrency market as of June 2018. About 1,104,590 GNO tokens are in circulation form the total supply of 10,000,000 GNO.
  2. On May 1st 2017, GNO went live for trading in the cryptocurrency market at an initial price of $51.64, Within the second day of its trading launch, it crossed the $100 mark. At the end of May 2017, GNO’s price had already increased by nearly 500%.
  3. Until the end of July 2017 price of GNO kept fluctuating somewhere near or between $200-$300. On January 2018 GNO closed at $406.16 its highest price so far. As of June 2018, its price has slid down to $44.45.

Price History

Date

Open

High

Low

Close

Volume

Market Cap

Jun 01, 2018

72.12

72.90

70.06

71.43

483,189

79,664,600

Apr 01, 2018

57.69

59.17

53.18

54.89

320,632

63,721,800

Jan 01, 2018

210.00

237.91

199.97

227.08

4,679,640

231,966,000

Nov 01, 2017

69.87

71.78

65.31

67.28

578,981

77,174,300

Aug 01, 2017

192.09

204.61

188.21

198.53

883,614

212,179,000

May 01, 2017

51.64

77.74

51.64

74.84

13,582,400

-

 

#5 - How is GNO different from other cryptocurrencies?

  1. While most cryptocurrencies allow functions like peer-to-peer transactions and payments, GNO token works in bit complex way. GNO tokens are an integral part of Gnosis ecosystem an essentially a license required to access GNO platform.
  2. GNO acts as a fee credit generating machine. GNO tokens are used to create WIZ tokens (another cryptocurrency of Gnosis platform) which in turn are used to pay different fees for accessing Gnosis platform.
  3. For generating new WIZ, GNO tokens are locked for a specified duration decided by the user. During the lock-in period, the tokens become non-transferable. The lockdown period can be ranged from one month to twelve months.

 

#6 - Should you invest in Gnosis?

  1. Gnosis is aimed to build a stable and secure market prediction platform. So far the Gnosis team have achieved the objective set in their roadmap, and several promising projects are on their way. Gnosis Safe, Gnosis Management Interface, and Dutch Exchange.
  2. Gnosis’ opted for the Dutch Exchange auction system for its Initial Coin Offering, and a little less than 90% of the tokens are still locked, which has angered many investors.
  3. If we were to follow the past trends, we’d find that since the trading began, GNO has been highly volatile - reaching a high of $406.16 and (as of June 2018) declining to $44.45.
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