Betting on the Blockchain
Let’s be candid for a moment; people love to gamble. We love to wager on things that interest us, and sports betting is arguably the most acceptable and common form of online gambling. Our love of gambling has combined with the proliferation of the internet, resulting in a robust online betting industry.
Yet when I want to gamble my hard-earned money away, I find myself concerned over a number of issues.
Why is this website asking for my personal information?
Will my private data be safe on their server?
Will I be able to gamble from my country of residence?
Is the process transparent, fair and immune to abuse?
These are serious concerns in an era where we regularly hear about massive data leaks, corporate hacking and the abuse of personal information. Luckily for us, a solution for all of these issues already exists.
Enter the blockchain.
The blockchain is a decentralized system of information through which users can anonymously conduct online financial transactions without relying on an intermediary. Thanks to so-called Smart Contracts, transactions between users remain transparent and are permanently stored on the blockchain.
For gambling, these concepts are revolutionary. They employ the global reach of the internet, but also offer us full anonymity, increased security and ensure fairness and transparency through the implementation of Smart Contracts.
Your money and winnings are completely secured against theft or unfair manipulation. Thanks to the decentralized nature of the blockchain, there is no need for an intermediary. Unlike with online betting agencies, no single party controls your finances. Your winnings are automatically calculated and dispensed thanks to Smart Contracts. Nobody can withhold or take your money unfairly.
When you bet online, you have to blindly trust betting agencies and hope that they will fairly calculate and award your winnings. This process is covered in a shroud of secrecy and users are left in the dark in regards to the mechanics involved, creating potential for abuse or fraud from betting agencies. On the other hand, the blockchain is completely transparent and all transactions are permanently recorded and can be accessed by the participating users.
Online gambling has been legalized in only 83 countries to date. But even among these countries, regulations concerning gambling are diverse and differ from state to state. Residing in countries where online gambling is illegal or highly regulated can seriously complicate your betting experience. Thanks to its decentralized nature and the anonymity of the digital currencies used, blockchain gambling can be accessed from any place with an internet connection.
Online betting agencies rely on taking a portion of your bets and winnings in order to survive. They need to pay the salaries of hundreds, sometimes thousands of employees in addition to creating a solid profits for their shareholders. The blockchain requires no such employees — it relies on the processing power of its users, using automation to complete the tasks previously assigned to humans. By cutting out the middlemen, the blockchain allows you to pay less and win more.
Not only is blockchain betting more secure, more efficient and transparent, but it also offers interesting options for gambling. Its decentralized nature allows users to bet between themselves, circumventing the need for bookmakers and returning to the fun roots of gambling. You no longer place your bets against bookmakers, but instead against other users through the blockchain, with the entirety of the pot going to you, the bettors.
Just as sports betting was forever changed following the advent of the internet, the blockchain will similarly revolutionize the industry and provide players with greater security, lower costs, full transparency and offer interesting new opportunities for sports bettors.Stay tuned to find out more about this exciting new opportunity, and in our next blog post we’ll cover our own blockchain-based platform for online sports betting.