BetProtocol: A New Online Gaming Standard Based on Fairness and Transparency
BetProtocol’s mission is to create the next generation online gaming industry powered by blockchain. Our technology brings safety, fairness and transparency for players, operators, and regulators. The current iteration of the online gaming industry is broken, and in this post we will outline how we are replacing it with a better paradigm.
Why Is the Online Gaming Industry Broken?
Broken For Players:
- Odds and House Edges are not transparent nor verifiable.
- Funds are NOT safe. Locked/Slow Withdrawals, Exit Scams, Predatory Terms and Conditions are common in the industry.
- Games are NOT provably fair.
Broken For Operators:
- The industry is awash in wash trading and fake betting volume.
- Bad actors make the entire industry look bad, while making it more difficult for honest operators to survive.
- Discrepancies in compliance/gaming data reports and Regulator inspections always lead to heavy fines and man-hours wasted.
Broken For Regulators:
- Compliance is difficult, time consuming, and not standardised.
- Inspections always find anomalies between player/gaming data and Operator reports, leading to lengthy investigations.
- Local laws and regulations can’t be enforced programmatically. Compliance automation is low or non-existent.
BetProtocol’s Vision for Online Gaming Powered by Blockchain
Players: Provably Fair Gaming & Autonomy of Funds
Trust is the biggest issue with players in online gaming.
Nowadays players are forced to deposit and game inside a black box system. They have to take the leap of faith that where they are depositing is safe, and that after the deposit the games they play are not rigged to cheat them.
BetProtocol solves these issues by having a fully transparent on-chain deposit/withdrawal smart contract (that has been through a 3rd party security audit), as well as using cryptography and provably fair algorithms to generate random numbers for determining game outcomes.
BetProtocol’s recent partnership with Matic Network increases the safety of player funds by adding all the security guarantees of Matic’s Plasma-fied Sidechains. These safety measures include periodic state commitments to Ethereum’s main chain, and expedited Plasma-exits for funds in case of fraud or malicious activity.
Our games all use provably fair algorithms for determining random numbers, which are then used to determine the outcome of games. In essence, the player knows that the random number generator is fair because he or she always contributes to generating that random number. The operator has no ability to single-handedly determine that number (and therefore the outcome of the game).
In case of a dispute, the operator can furnish its own server seed, and the player can furnish his player seed, and run the game in question again. The algorithm will prove that the number generated results in a win or lose for the player.
Common operator scams like blocking withdrawals, very slow withdrawals, and unfair games will become a thing of the past.
For more information, check this article.
Operators: Fair and Transparent Ecosystem
Wash trading aka fake betting volume is a big problem in the online gaming industry. It hurts everyone, because it allows bad actors to seem more popular and attractive than they are. It also hurts people who play by the rules and only allow legitimate volume. In fact, wash trading creates a perverse incentive for operators to lie to their players, and rewards them for doing so.
BetProtocol’s native utility token $BEPRO is designed to act as gas in a staking model for Operators. Every bet on BetProtocol has a BEPRO gas fee associated with it, and this fee is always a percentage of the value of the bet, therefore changes for different betting amounts. This is different from gas fees on Ethereum for example, where the amount of gas changes based on the number of computational steps, not the value of the transaction. This means that on Ethereum, sending 10,000 ETH costs the same in gas as sending 5 ETH.
In contrast, BetProtocol’s system has BEPRO gas fees that scale in amount due with the value of the underlying bet. Why? To prevent wash trading. Each bet has a gas fee of 0.5% of its value in BEPRO tokens associated with it.
So the answer is not to prohibit wash trading. That would be impossible. The answer is to make wash trading prohibitively expensive.
A 5 ETH bet would incur a 0.5% fee, or 0.025 ETH worth of BEPRO.
A 10,000 ETH bet would incur a 50 ETH worth of BEPRO fee for the operator.
Note: Operators would happily pay either fee if those bets were legitimately from real players (because it pays for all of our tech they are using), but in a wash trading scenario it is a big deterrent. See here for more info.
Regulators: Easy and Reliable Compliance Checking
Operators and Regulators both benefit from BetProtocol’s blockchain based online gaming system. Gaming data is used to perform compliance reports (operator side) and inspections (regulator side). Both parties benefit from having data redundantly and safely secured on the blockchain.
For operators, securing this data and keeping it accurate represents a large and expensive risk.
For regulators, making sure operator’s data is accurate is an expensive and time consuming task.
By using BetProtocol’s blockchain system, both operators and regulators can be on the same page about compliance and gaming data, and both be certain to a high degree of confidence that the data is accurate.
Each year, regulators levy tens of millions of dollars in fines to operators worldwide for discrepancies in data during compliance checking. With BetProtocol, we are building the blockchain based system to make this a thing of the past.
Local gaming laws and regulations can be confidently coded into BetProtocol’s modular technology to actually enforce those laws programmatically. That is a key breakthrough that we are proud to offer the online gaming industry.
BetProtocol enables entrepreneurs and developers to create betting platforms in minutes. No coding required. Thanks to BetProtocol’s blockchain technology, these platforms are secure, scalable and regulatory compliant. BetProtocol’s vision is to create the new standard in online gaming based on fairness, transparency, and safety.
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