Decentralized sports betting sounds cool, but what is it?
Although we have detailed white paper that does a great job of explaining our decentralized sports betting platform, I thought it would be helpful to just briefly touch on what we’re creating at Block Sports.
At our core, we are a company that develops blockchain enabled sports betting technology. Our current focus is the Block Sports Exchange, a betting exchange. From a user perspective, it’s similar to other centralized betting exchanges such as Betfair and Smarkets. However, unlike these platforms, the Block Sports Exchange does a few things differently under the hood.
Firstly, all betting is done with the cryptocurrency NeoGas (GAS).
Secondly, it’s decentralized, meaning that all critical processing such as matching and escrow is handled on-chain. User never have to trust their funds with us, their funds go from their wallet to a smart contract and then back to their wallet. No need for a middle-man or central governance.
There are many other factors that make the Block Sports Exchange unique, but for the sake of simplicity these are the core differences.
An easy way to think about our exchange is as a DEX for sports betting.
So what exactly is a betting exchange and how does it work?
Simply put, a betting exchange is a peer to peer marketplace for the trade of sporting outcomes. Unlike a traditional betting platform that most readers would be familiar with, odds on a betting exchange are not set by ‘the house’ or a platform operator. Instead, odds are determined by users on the platform. Similar to a currency exchange where market forces from buy and sell offers determine the prices of a currency, the market forces of back and lay bets determine the odds of an event outcome.
Back and lay bets are just terms used on betting exchanges to represent buying and selling, or more literally, betting for an outcome to happen (backing an outcome) or betting against an outcome happening (laying an outcome).
The back and lay mechanism isn’t immediately obvious and can take a bit of effort to wrap your head around, so I won’t go into too much detail right now, I’ll save that for separate article. For a technical overview you can check out section 2.1.1 in our white paper.
At the end of the day the best way to get a grasp on back and lay betting is have a play with a betting exchange. Just so happens we have a demo of our exchange available right now. Head over there and check it out.
We would love to know what you think about Block Sports. Drop by our telegram and let us know.