Blockchain Sports Betting
Blockchain technology is being lauded for helping bettors, and bookmakers get more benefits than they would play in conventional gambling platforms. Crypto sports betting offers different solutions than is possible with traditional systems that are advantageous to punters. Below, we discuss why blockchain is important for sports betting along with the pros and cons.
Table of Contents
- Fair gaming: For punters, the most significant benefit they gain from blockchain technology is transparency. With this technology, gamers don’t have to depend on media frenzy or completely trust their bookies to hope they get fair deals. Blockchain guarantees that they always get decent bets. Whenever you feel shortchanged, you are allowed to review your bet through blockchain, guaranteeing that each action was fair. The same level of transparency isn’t available in the conventional bookmaking sector. Most traditional sportsbooks use private databases to run operations.
- Trustworthy: not to be left out, sportsbooks also profit significantly from blockchain technology thanks to the increased trust factor. Since sportsbooks of old have been losing bettors consistently, the clever ones have switched over to using bitcoin technology. To remain popular and to gain more followers, they are offering bettors trustless platforms where they gamble, knowing the outcomes they receive are legitimate.
Eliminating Bookmaker Mistakes
We should start by stating that not all that is wrong with betting can be blamed on the bookmaker’s decisions. Like any other place or thing, mistakes are made by either the human resource and also caused by technical glitches. Averagely, each sportsbook handles hundreds if not thousands of wagers daily. Mostly, bookmakers do a tremendous job handling the bets and see to it that they run a streamlined business.
When we focus on the FanDuel incident, we see that mistakes are bound to happen and can hit anyone. How you handle it afterward determines how fast you bounce back. Fortunately, these are problems that can be averted before they even raise their head. Blockchain sports betting-technology can help mitigate issues by utilizing a more extensive network of computers used for verifying bets.
Additional security: blockchain sports betting increases sportsbooks’ security via multiple means. Each block is chronologically stored, and every new blockchain gets placed at the tail. The instant a new block gets added, it’s contents can’t be altered quickly, thus promoting authenticity. Each block has a hash code, which in turn carries a string of both numbers and letters. Should this information get altered, the hash code has to change as well. Below we show a sample of how the system works, thus promoting more security.
A punter makes a bet, and if the online sportsbook grants you incorrect odds, that benefits the player. After realizing the mistake, the sportsbook attempts to rectify the odds and thus ends up changing the block’s hash. However, the next block in the chain will still show the old hash. The bookmaker will need to update the block to instill their scam, thus changing the new block’s hash. With this trajectory, they get caught up in an endless loop where they get to turn each block to cover their tracks. By the end of it all, the sportsbook will spend a lot of time to scheme and scam the punter. With this scenario, the idea of a sportsbook altering the odds is likely never to happen.
- Additional Payment Gateways: Blockchain sports betting technology fairs well with cryptocurrencies. Sportsbooks using this platform are open to receiving cryptocurrency deposits. The crypto space comes with more benefits when compared to standard payment options.
- Decentralization: Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and a horde more cryptos are not under any government legislation. The new technology promotes peer-to-peer betting sites transactions between the sportsbooks and the player. A bank or e-wallet can’t cancel your betting deposit. Miners verify your deposit, and they don’t/can’t scrutinize the nature of your transaction.
Disadvantages of Blockchain Sports Betting
Like anything else in the world blockchain technology comes with a couple of drawbacks such as;
- Experimenting: Both the players and the sportsbooks will have to set aside time to acquaint themselves with the new technology. They have to figure out how to make deposits and initiate withdrawals. They will also need to learn how to verify bets on the blockchain platform. Bookmakers that switch to using blockchain technology need to ensure they learn the technology in its entirety. They have to spend time and money changing from their private data centers and embrace blockchain technology.
- Pricey Move: moving from one platform to the next isn’t a cheap undertaking. Other than the time commitment required, it attracts a lot of financial obligations. To begin with, sportsbooks will need to pay the workforce they require to Make the Move. They will also need to retain a certain percentage of employees to help them navigate the new technology.
- Shady Projects: blockchain technology is becoming popular since it promotes trust. Unfortunately, not all sportsbooks using this platform are trustworthy. Several companies that held initial coin offers (ICOs) that were popular in 2018 have been labeled as scams. By mopping up funds from naive investors, these scams have now affected a broader aspect of cryptocurrencies other than the sports betting sector. Such actions have seen many perceive blockchain as a sour platform.
- Fewer Jobs: in conventional gambling platforms (land-based and traditional online casinos), a lot of human resources are needed. Blockchain technology is replacing many of these employees. Although this will bring down operational costs, many of the former hired help will be rendered jobless.
Final Thoughts
Having read the above, you can see that blockchain isn’t the magical solution we all thought it would be. That said, however, the technology grants gamers several advantages. The blockchain technology promotes a trustless playing platform where punters can make their wagers without getting worried. Moreover, on these platforms, sportsbooks can’t swindle players since every action gets registered in the public chain.
The platform promotes security, and hackers are yet to learn how to crack the decentralized technology since it’s open to everyone taking part in the transaction. Another benefit of using blockchain technology is the variety of deposit methods. Punters in the United States have an easier time making deposits in offshore sportsbooks platforms since decentralization means no governmental restrictions.
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