DApps: Adoption vs. Adaptation
Many applications benefit from blockchain but which industry serves to benefit the most from its benefits?
Blockchain networks go far beyond being just platforms for peer-to-peer fund transfers. The immutable and trustless nature of distributed ledgers is ideal as a replacement for antiquated services, the capabilities of blockchain networks can be adapted into freestanding applications known as “Dapps” (short for “decentralized applications”).
These applications utilize blockchain networks such as Ethereum and EOS, which are programmed to allow the network’s resources to be used to act as a transaction protocol and consensus mechanism for applications.
DApps directly benefit from the ability to build out smart contracts in object-oriented programming languages such as Ethereums solidity, which are often used to create trustless and instant payments upon an agreed-upon event occurring.
This is an initial construct of blockchain, that DApps has lent itself well to for betting transactions. The main reasoning is that because the two parties to a given transaction do not need to trust each other, bets can be placed on a peer-to-peer basis with each bettor having full confidence that the winner will be paid without a middleman.
Therefore many of the most popular and utilized DApps are ones focused on Sports Betting and Gambling because the industry is ample for a shakeup in the roles of market maker and bettor.
What roles do users play?
Trustworthiness is usually provided by a central entity such as a bookmaker, who will provide less-than-optimal betting odds to account for the commission (known as “vigorish” or “vig”) which they collect as a fee for their services. While betting transactions made on the blockchain through DApps can simply be made between two individual bettors, there is no need for a bookmaker, which results in more favorable odds, and higher winning payouts.
Another reason why DApps work well for betting transactions is that wagers are settled using cryptocurrencies, as opposed to fiat currencies. This, in itself, provides bettors with two unique benefits…
(i) Irreversible transactions — Since nobody actually wants to pay a losing bet, there will always be a percentage of bettors who will attempt to renege on a wager. Guaranteed payment on winning bets is part of a bookmaker’s value, especially if the bookmaker is a licensed gaming entity such as a casino, where payouts on winning bets can be enforced by a gaming commission. In addition to the protections already provided by DApps, cryptocurrency transactions by nature cannot be reversed or disputed. As a result, sore losers will have no recourse, allowing for peer-to-peer wagers to have no compromise on payout certainty.
(ii) Circumventing legacy financial institutions — Banks and credit card issuers tend to be very risk-averse when it comes to gambling-related transactions. This is both for their own liability (i.e. given the frequent instances of credit card fraud with online gambling), and for legal compliance (i.e. in jurisdictions where sports betting is not completely legal). Since cryptocurrency transactions do not go through an intermediary such as a bank, these restrictions do not apply to wagering transactions made using cryptocurrency on DApps.
Why users are betting on blockchain
The chemistry between wagering and the capabilities of blockchain-based DApps is evidenced by the average volume of daily users of betting DApps far outnumbering the user-ship of DApps in any other category, based on DApp usage statistics reported by DappRadar (https://dappradar.com/rankings), which tracks the use of more than 2,200 DApps.
“The gambling industry tends to be the first adopter of many new technologies, especially if such technologies provide greater security or cost savings. Therefore, it is unsurprising that gambling-related DApps (decentralized applications) on blockchain networks see the highest amount of daily average users.” — Ameer Rosic
Canadian firm meVu Inc. has created a DApp on the Ethereum blockchain called meVu (http://mevu.bet) which allows peer-to-peer sports wagers to be made using cryptocurrencies. MeVu is more than just a sports book, it is also a flexible sports odds platform that creates value for wagering ecosystem participants other than everyday bettors…
Why meVu is a leader in blockchain sports betting
(i) Boutique Bookmaking/“Be your own sports book” — Users who know their sports and how to set the best odds can offer their own betting lines on the meVu platform, which also acts as a marketplace for odds offered by individual “boutique” bookmakers. This enables savvy sports handicappers to set up shop as a bookmaker, but without the high start-up costs. Wagers offered by these users will be settled using the meVu DApp, providing bettors a uniformly high level of protection.
(ii) White label cryptocurrency wagering — Through an API, existing traditional bookmakers will be able to seamlessly offer cryptocurrency betting to their customers under their own banner, but using meVu’s DApp as an underlying settlement system. This enables sportsbook operators to capitalize on the existing demand for wagering with cryptocurrencies, but without the need to build a system from scratch.
As of this writing, the meVu DApp has had more than 89,000 signups for its beta version (creating an account with an email address and Ethereum address). Notably, during the 2018 FIFA World Cup, more than 3,900 users placed new predictions on the platform on a daily basis. The beta version of meVu can be accessed at the following link: https://dapp.mevu.bet
Starting on Monday, June 10, 2019, the meVu DApp’s proprietary cryptocurrency MVU will be availed to the general public through an initial exchange offering (“IEO”) on the ProBit Exchange. The MVU cryptocurrency is used both for access to the meVu DApp, and for the settlement of transactions across the platform, including on boutique bookmaking and white label/API wagering transactions.
Interested participants are encouraged to begin the KYC screening process on Probit to be eligible for access to the IEO for MVU. The IEO’s page can be accessed at the following link: https://www.probit.com/en-us/ieo/mvu-round1/0
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