How Decentralized Betting Platforms Work

There are many advantages that the blockchain can provide to most industries but the gambling sector is one that can greater benefit from this new technology. Decentralization is one of the key reasons why cryptocurrencies have become so widely adopted as it means that anyone can store their own digital assets outside the system. It gives users complete control and due to no centralized authority having access, it provides the ultimate security. In the gambling world, this is vital as it means that no tampering can take place.

Betting Transactions Handled On-Chain

One of the major problems faced by gamblers who bet online is that they have to deposit money which is then held by the casino. In many cases, online casinos have taken advantage of this by refusing to pay out big wins which is possible due to been centralized. Decentralized blockchain betting platforms, however, do not hold the player’s fund as the process is carried out on-chain. These processes do not require any central governance as they are preceded by smart contract escrow accounts.

Decentralized Sports Betting Exchanges

One of the most popular types of decentralized crypto sports betting is exchanges that work differently than traditional online bookmakers. Instead of a centralized authority setting the odds, they are set via the users. The odds are set by market demand factors instead which is determined by the lay and back bet demand of each event. It means that punters will find greater payout rates available when compared with traditional bookies.

Anonymous Crypto Betting Platforms

Decentralized betting platforms work by users downloading an application that connects them to the network so they can place bets anonymously as they are not been placed through a centralized model. Users are not required to register details and are instead given a unique wallet address that is used as a smart escrow account. This process enables anonymous crypto betting to take place on the platform and ensures that user data remains private.

Users Become Shareholders Of The Betting Platform

Instead of a centralized owner gaining all the profits, decentralized betting platforms aim to make the users the beneficiary. This is only possible thanks to cryptocurrency technology as new blockchain ecosystems can be built that pays dividends to token holders. The payments are automated through smart contracts and the size of the amount depends on the total coin holding of the user. 

Decentralization Is Vital For Trust

What makes decentralized betting platforms better than traditional centralized bookmakers is the level of transparency and trust they provide users. Central models can tamper with results as they are produced on their own servers, whereas, blockchain-based models run on a decentralized network that no one can tamper with. Also, all betting transactions are publically displayed to that checks and balances can be carried out to ensure the platform is working correctly.

Why Choose A Decentralized Betting Platform

There are many different reasons why betting platforms that are decentralized are better than traditional online bookmakers. Below are the key benefits that make them superior:

• Tampering Of Results No Possible
• Complete Transparency Of All Betting Transactions
• Complete Privacy And Anonymity
• Better Odds
• Token Holder Dividend Payments
• No Third-Party Involvement

Final Thoughts

The sports betting sector is one of the largest in the world and the race is on to become the leading decentralized crypto gambling platform. The advantages that they provide users should ensure that they eventually become the mainstream option in the years to come. There are still high risks attached to cryptocurrency so make sure you are extremely cautious should you decide to purchase a gambling token online.