All You Need To Know About Decentralized Sports Betting

The blockchain was designed to disrupt the banking sector by putting users back in control of their own money and it has been a great success that has taken most by surprise. Since gaining popularity it has attracted the world’s best developers to come up with new ways to use this technology to improve present structures. The outcome has been remarkable and we are currently in the initial stages of a decentralized blockchain revolution. One of those that is seeing the biggest effects is the sports betting industry and in this article, I will tell you all you need to know.

Current Issues In The Sports Betting Industry

The sports betting industry has many problems with most caused due to centralization which makes it possible for the owners to refuse payouts or use algorithms to limit successful gamblers. It can also be problematic for those that use online bookmakers as they have to prove lots of personal details to become registered and withdraw money. That can have a negative effect as it leaves personal data open to be exploited or could result in a person’s credit rating getting damaged.

Another issue is that bookmakers set the odds which are carefully calculated by experts in the field along with advanced statistical programs. It means that the bookie will always stay on top of the long-term.

The Decentralized Sports Betting Solution

What makes decentralized sports betting platforms so special is that no one, including the founders, can tamper with the outcomes or payouts. The dApps are owned by the community and anyone who buys tokens to gamble with becomes a part shareholder. There are many different concepts of this available with many paying profit dividends or other rewards to the users to redistribute the platform’s profits.

The odds at decentralized betting sites are not set by bookies or algorithms but instead, the buy/sell rate of event promotions is used to create the odds. This can result in far greater odds when compared with traditional bookmakers. There are also platforms where peer-to-peer gambling takes place which enables users to set their own odds.

Decentralization Makes Sports Betting Available Around The World

There are pluses and negatives surrounding decentralized sports betting been available around the world, so it depends on which side of the debate you are on as to if it is a good idea or not. One thing is for certain is that the present system is broken as there is too much fraud going on along with addiction problems are on the rise. In the countries which have banned gambling altogether, it has created a huge black market generating billions each year. It also means that they are receiving no tax so money is not been generated to help with the problems it can create.

One of the main areas that have failed in the gambling sector is regulation as too many rogue operators have been able to get around the system. With blockchain technology powering a decentralized site for betting it can include regulatory checks included in the smart contract protocol. It means that the gambling industry could eventually become self-regulated thanks to all checks and balances carried on on the blockchain network.

Redistribution Of Gambling Profits

There is only a small group of organizations that control a large percentage of the online sports betting industry. They are some of the wealthiest companies in the world such as Bet365 and you will find the founders on the Forbes rich list. Decentralized sports betting on the blockchain is going to dramatically change the marketplace as instead of the profits going to the company founders it is redistributed to all of the token holders. This is going to transform the business and have a similar effect to what online streaming had to the DVD rental market.

Final Thoughts

Information is the world’s most valuable commodity and it has been used against us to exploit along with an attempt to brainwash us into a certain way of thinking. That is why anonymous decentralized betting platforms are the way forward as they enable users to keep their details completely private. With regulatory checks and balances carried out by smart contracts, it should eliminate any errors or fraud taking place and help to clean up the industry of bad players.