Smart contracts can use oracle systems to get consensus on info from the outside world. So a smart contract normally can't communicate with anything besides its internal state, but with Augur they can get info about outside events.
One example of how this could be used (and our primary focus) is on prediction markets using the oracles to report on the outcomes of events after they occur. (Imagine a decentralized InTrade)
One example of how this could be used (and our primary focus) is on prediction markets using the oracles to report on the outcomes of events after they occur. (Imagine a decentralized InTrade)