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The sports betting industry is a $85 billion market, with about $9 billion of that coming from the U.S. alone. Sports betting is growing rapidly due to the legalization of sports betting in the United States, which has opened up new opportunities for entrepreneurs and investors to capitalize on this enormous opportunity.
Traditional sportsbook operators have been slow to adapt to the changing environment, leaving an opening for new players to enter the market with innovative ideas and technologies.
Decentralized sports betting platforms are a new technology that is growing in popularity. In this blog, we’ll take an in-depth look at what they are, how they work, and how they differ from traditional sports betting sites.
What is Decentralized Sports Betting?
Benefits of Decentralized Sports Bets
Transparency
The first benefit of decentralized sports betting is transparency. The blockchain technology provides an immutable ledger of transactions, which means that all transactions are recorded permanently on the blockchain. All participants can see all events on the blockchain network, which makes it impossible for anyone to make changes or manipulate data. This creates a level playing field for all participants and helps to eliminate fraud and corruption from the industry.
Security
Decentralized betting platforms are not centralized like traditional gambling sites, which means that they are immune to hacks and security breaches as there are no databases or servers containing sensitive information where hackers could gain access to users' personal data.
Lower costs
Because there is no need for centralized servers, the cost of running a decentralized sportsbook is significantly lower than traditional betting sites.
Trustless
A trustless system means that you don’t need to trust any third party or middleman in order to make a bet on your favorite team. Instead, you simply send your funds directly to an escrow smart contract which will hold them until the end of the match. You get paid out automatically according to the result of that match by withdrawing your winnings from this smart contract once it has processed all bets correctly.
Better odds
Decentralized sportsbooks don't have to pay licensing fees or taxes, which means they can offer better odds than traditional bookmakers. This can be especially beneficial for casual bettors who might not always be able to find the best odds at their local bookie.
How Does Decentralization of Sports Betting Platforms Work?
Decentralized data storage
One of the most important aspects of decentralization is the ability to store data in a decentralized manner. With a centralized data storage system, you have a single point of failure, which means that if something happens to your centralized database, then all your information will be lost. Decentralized data storage systems are designed so that they do not rely on a central server or authority to function properly. Instead, they use blockchain technology to create a peer-to-peer network where each node in the network has access to all the information stored on it.
Decentralized smart contracts
Decentralized smart contracts are the backbone of a decentralized sports betting platform. These smart contracts act as the engine that powers the whole ecosystem. Decentralized smart contracts allow for transparency, trust and accountability in all transactions. All transactions are recorded on a public ledger and are encrypted with military grade cryptography to ensure that no one can tamper with it. Once a bet is placed, it will be added to a block on the blockchain and other nodes will validate this transaction before adding it to their own blockchains. This ensures that there are no double payouts or cheating and makes sure that all bets are fair.
Decentralized user accounts
Decentralized user accounts are one of the main benefits of using a decentralized sports betting platform. Instead of having your money locked up in a centralized account controlled by your sportsbook operator, you will have complete control over your funds at all times thanks to smart contracts on a public blockchain network like Ethereum or EOS (EOS Bet). This means that you will be able to transfer funds directly from your wallet to another user without any third party interference (such as fees).
Decentralized payments system
Traditional payment systems are centralized and controlled by a third party such as a bank or credit card provider. These middlemen take a percentage of each transaction, which increases the cost for customers. In addition, they can block or reverse payments at any time. With blockchain technology, users can send and receive funds directly between themselves without having to go through an intermediary.
Decentralized token exchange
This is a very important aspect of decentralization that should be considered when choosing a sports betting platform. Decentralized token exchanges are those that do not store your funds, but trade them on the blockchain itself. This means that you can’t get hacked and your funds can’t be frozen by the exchange owner. These exchanges also provide better liquidity than centralized exchanges, which means that you will be able to buy or sell your cryptocurrency at almost any time with no wait times.
Features Included in a Decentralized Sports Betting Platform
Integration in NFT Ecosystem
We have successfully integrated with the ERC721 standard, which is the Ethereum standard for non-fungible tokens (NFTs). This means that you can use your NFTs as bets on our platform. The integration allows us to offer a wide variety of collectible items as an option for wagers.
Casino Games in Metaverse
Metaverse is a decentralized blockchain-based virtual world, which provides users with the ability to create, develop, and grow their own digital assets. In this virtual world, users can also make friends, play games or gamble on our platform. Metaverse is a decentralized blockchain-based virtual world, which provides users with the ability to create, develop, and grow their own digital assets. In this virtual world, users can also make friends, play games or gamble on our platform.
Crypto Wallets Integration
Another important feature is the integration of cryptocurrency wallets. This will allow users to deposit or withdraw their funds directly from their wallets. This is a very important feature that will enable users to have full control over their assets at all times.
dApps Development and Integration
A decentralized sports betting platform allows developers to create dApps that use the blockchain technology to provide new ways for customers to interact with each other. These dApps can be used for entertainment or educational purposes. They can also be used for gathering information about sports events and sharing it with other people who want to bet on them. This feature is especially useful for users who want to combine their love of sports with an interest in technology.
Blockchain Management
One of the features included in a decentralized sports betting platform is blockchain management. This feature allows users to track all transactions on a public ledger known as a blockchain. In addition, it provides transparency so that anyone can see what’s happening with their funds at any time.
Commission Fees Management
Depending on the type of bet you place, you may have to pay a commission fee for your winnings or losses. This fee can be deducted from your bankroll or added to it depending on your chosen payment method.
Automated Trading Tools
These tools help you automate your trading strategies and make them more robust as well as profitable. It also helps you manage your trades in a better way by providing real-time data feeds and insights about market behavior.
Customer Support
We offer a personalized approach to customer service. Our team of experts is dedicated to helping you get the most out of the platform, whether you are a beginner or an experienced trader. Our customer service team is always available to answer any questions you might have.
Gambling Tokens Issuance
The next feature is the issuance of gambling tokens. The issuance of these tokens will allow users to participate in various games without having to spend their cryptocurrencies on the game. The tokens issued by this platform will be based on blockchain technology, which means that they can be traded on exchanges and exchanged for other cryptocurrencies or fiat currencies.
Wrapping Up
About iGamingBook
iGamingBook is a white label sports betting software provider that can help you decentralize your sports betting platform. Whether you are looking to launch a sports betting platform or just want to add more sports to your existing online casino, we have got you covered. Our unique platform allows you to customize your own sportsbook with all the necessary features at the click of a button.
Our easy-to-use interface and powerful API makes it easy for developers to integrate our betting software into their websites with just a few lines of code!
Our platform provides an intuitive and user friendly experience for both players and operators alike. Our live in-play betting feature allows users to bet on events as they happen which gives them a chance to win even more money than ever before!
FAQs
Decentralized betting refers to the practise of placing wagers through a decentralised network of nodes. Client-to-client betting or peer-to-peer betting are other names for this sort of wagering.
Sports betting is decentralized because betting is a form of entertainment, and the best way to ensure that a product is entertaining is by giving people freedom.
NFTs are non-fungible tokens. They're used in place of physical items, like sports tickets or game paraphernalia.
Decentralization is better than centralization because it allows for more freedom. With decentralization, you can control your own data and how it's used, rather than having to rely on a third party to do so.
Sources:
- https://www.crypto-reporter.com/news/decentralized-sports-betting-what-you-need-to-know-36998/
- https://en.wikipedia.org/wiki/Decentralization