Decentralized betting is taking over the world. Powered by blockchain and smart contract technologies, this new breed of online betting platforms vastly improves the quality of services provided to users.
Although the online betting industry continues to expand 9% annually, if we take blockchain out of the equation, not much is being done in terms of innovation. Also, users don’t place much trust in online betting platforms, and with good reasons. There are countless stories of users receiving big prizes only to get their accounts frozen or be unable to withdraw the funds.
Blockchain can help solve this issue and bring increased trust and transparency to online betting. Let’s see how exactly.
Advantages of decentralized betting
One of the earliest innovations in blockchain betting was the creation of the provably fair games. Probably fair is a method through which users can verify the random number generator, the algorithm responsible for creating the randomness of every bet. This algorithm is hidden in traditional online betting platforms, and users have no way to verify that the house is being fair.
Later on, with the advent of Ethereum and smart contracts, further transparency was added.
Any bet made is now written into a smart contract, making it so all transactions can be seen and verified on the blockchain. The whole betting system is made trustless, effectively eliminating the need for middlemen and cutting down on costs for users.
Blockchain also helps enhance security. In decentralized betting platforms, users keep funds in wallets which they have complete control over. Problems like geoblocking are also circumvented since there is no central server, but rather a collection of nodes spread around the world that keep the network online. Users can also maintain their anonymity and financial privacy, as they won’t be required to share personal information or verify their identities.
Another exciting use case, made possible by smart contracts, is the ability for users to create bets under their own terms and have others participate (P2P). In short, the house is not at the center of betting anymore.
Blockchain reshaping the betting industry
The betting industry is monopolized by a small number of companies, which keep the cost of betting relatively high due to restrictive legislation and substantial fees. The barrier of entry is also a problem, as geoblocking and KYC policies keep certain users from participating.
However, the disruptive potential of blockchain can help usher in a revolution. Self-regulated betting platforms can be the new face of betting, operating as decentralized autonomous organizations (DAOs) that are democratically open to everyone and can run autonomously, independent from any regulatory restrictions.
Dexsport is an innovative project that changes the way users think about betting. The platform is a DeFi prediction platform that includes: sports betting, play-to-earn games betting, prediction market, P2P prediction on cryptocurrency rates, and NFT marketplace.
The Dexsport ecosystem caters to users interested in betting and blockchain enthusiasts and investors interested in putting their money in a common liquidity pool.