Blockchain Based P2P Betting Platforms
The gaming industry has demonstrated steady growth, with an annual turnover surpassing $3 trillion in volume. Betting is the third largest segment in the overall gambling industry, behind poker and casino games, but the largest segment in the online market with 48% of annual turnover.
Betting on mobile devices is increasing rapidly, with 30% of turnover currently originating from mobile applications. The mobile segment has been a major growth driver for several years, corresponding to general trends in consumer technology. Desktop computers are largely being relegated to the workspace, while shopping and entertainment are carried out on mobile devices.
According to The Statistics Portal, the volume of online betting is projected to reach $51.96 billion in 2018, more than twice the level of 2009. The global dispersion of market participants is expanding, recently fueled by a major influx of players from Africa and Asia. In Nigeria 60 million individuals bet on sports regularly, while in South Africa 50% of the population is involved in the industry in some form.
Online betting industry is developing very fast and it is very profitable. However, it faces with many problems like money laundering, accusations of cheating and fraud. Even if you google the question “How to cheat in online sports betting?”, you will find out incredibly big amount of recommendations such as:
5 Brilliant Hacks You Can Use to Cheat the Odds at Gambling
How to win at betting in 10 easy steps the bookies don’t want you to
How to hack a sport betting website
Newbie Sports Betting Cheat sheet
…and there are a massive amount of articles and surveys regarding to this topic, which describes different techniques how to cheat.
Blockchain services remove the problem of trust issues by enhancing transparency in online gaming industry. Blockchain refers to a decentralised public registry storing records in multiple locations of all transactions that have occurred since inception of the registry. Each transaction is irreversible and verified by a consensus majority of participants. With thousands of copies on nodes throughout the world, Blockchain is by its nature immune to most hacking attempts. Advantages include transparency, anonymity, efficiency, scalability, and many others.
Transparency and Data Authentication
All records in the blockchain are decentralized, unchangeable and irreversible. At the same time, they are completely transparent, i.e. available for viewing at any time by any member of the network. The same database is replicated to each user, meaning each node is able to authenticate and verify any new or prior transactions. “Smart contracts” can be set up under which certain actions will irrevocably take place (such as the exchange of money) if certain outcomes occur (such as one team’s victory in a sporting event).
Entries in the blockchain are anonymous. While the transactions of a given account or wallet can be viewed by any member of the Blockchain at any time, accounts themselves are not identified with individuals. The user’s personal information remains confidential, protected by essentially unbreakable encryption protocols.
Transactions on conventional betting services pass through a number of intermediaries (banks, payment systems, brokers), incurring commissions at every step. Blockchain allows the user to conduct transactions directly, without intermediaries, under transparent conditions known in advance to all parties. This is true for commercial contracts, private payments, betting on the Bettium platform, or any other transaction carried out on the blockchain. Commissions are minimized and transaction speed maximized, as users connect to each other directly in cyberspace without interference from banks or third parties.
The blockchain is supported by a specific number of independent nodes (“masternodes”), which are connected in a P2P network not managed by any central authority. The number of masternodes employed can be adjusted depending on the number of agents and transactions on the network, thus providing a stable platform even at high levels of traffic. The Bettium platform will function efficiently and reliably with any number of users, providing scalability that would be impossible to achieve in a centralized system.
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