Sports betting is a big industry that rivals the traditional betting scene. The rise of sports betting has been powered by the internet and mobile phones which have aided its distribution. Its adoption of technology has helped it in the past but will it do so again? Blockchain technology has witnessed a steady adoption among operators in the betting industry. How will this adoption enhance Sports Betting? Find out in our guide.
What is the Blockchain?
The blockchain is a distributed ledger that is stored on blocks linked through cryptography. Blockchain is the foundation for cryptocurrency and other permissionless technologies that have changed the way we operate in different fields. Any crypto sport betting platform available online is built using blockchain technology. This means that the operators and players can enjoy the benefits of having the blockchain as the foundation of their gambling. Crypto betting websites accept various cryptocurrencies for bets, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT), Solana (SOL), and Ethereum Classic (ETC). In the next section, we will explore the benefits the blockchain will bring to the sports betting industry.
Benefits of the Blockchain in Online Betting
Sports betting is a high-turnover industry with billions being used for betting annually. The blockchain will change how the players and operators in the industry approach online betting by bringing the following benefits.
Transparency and Security
There will be increased transparency and security on online betting platforms. Players can freely game without fear of their data or funds being stolen. The immutability and security of the blockchain ensure that bad actors and other illegal third-party actors cannot compromise your data. Data brokers are also unable to operate because these systems are safer than traditional betting websites. The benefit of using blockchain is that it will increase the number of players registering on sports betting websites built with blockchain technology.
Faster Transactions
The blockchain will facilitate faster transactions than traditional methods. When players deposit or withdraw money using the current means, they sometimes have to wait for up to 5 days before the money is credited. This slows down the speed of sports betting and discourages some players from participating in online betting. The blockchain will solve this problem by facilitating instant transfers between betting operators and their users. It will also eliminate fraud through its increased security.
Lower Fees
Blockchain transactions require little fees to process. These transactions are directly between the user and the operator, as the middleman has been removed. Traditional online payment processors charge hefty fees to move money between sports bettors and operators. These fees can go as high as 5%, and it drains money from the pockets of punters. The blockchain will reduce these fees and leave punters with more funds to use for sports betting. It will also reduce the barrier to entry for new players with little funds.
Anonymity and Privacy
One of the most significant selling points of the blockchain is its anonymity and privacy. It allows players to place bets without revealing their identity. Traditional online betting websites require players to verify their identity using their full names and other intimate details. Providing this information to online betting websites is a risk because a data breach could lead to your information being leaked. It also does not give you the anonymity you need to place bets without public scrutiny. The blockchain will help operators create a safe haven for sports betting activity.
Improved Accessibility
The blockchain is accessible from anywhere in the world. Games built using blockchain technology will also be accessible to players from around the world. This will allow operators to reach areas that were previously blocked due to various reasons. Players that reside in distant countries with strict gambling laws would also be able to access sports betting platforms without censorship. This will open new markets and create opportunities for growth. Players will also have more options available to them when they want to wager on sports.
Asset Tokenization
Tokenization is another benefit that blockchain technology offers sports betting. Operators can tokenize various real-world assets to make them tradable using blockchain technology. This tokenization will bring a new wave of flexibility for punters. It will also open up new revenue streams that will change how operators make money. Tokens could be so much more than currency. It could be used for tickets, ownership stakes, and other in-game items.
Decentralization
Traditional sports betting operations use middlemen to facilitate bets. Blockchain technology will remove these intermediaries and create a more efficient system. The over-centralization of the current system is disadvantageous to players. Blockchain technology will power a peer-to-peer model that is secure and removes any external influences. Players can make bets on fairer odds and make more money from correct predictions. The decentralized model of sports betting takes power away from the operators and puts it in the hands of players.
Smart Contracts
Smart contracts operate without human intermediaries. These contracts automatically execute when both parties have met the conditions set. The application of these contracts is numerous across all facets of the sports betting industry. Operators can use these contracts for bonuses that are automatically credited once players win all rewards. Bets can also be powered by smart contracts, which automatically pay the player once all of their predictions are correct. This will change how operators approach sports betting and bring a new wave of players into the scene. The instant payments and rewards will change the landscape of sports betting.
Blockchain has many benefits that it provides players and operators. Online betting is fun, but you should take safety precautions when you are involved. Always check the registration details of any online casino before you create an account. You should also read the terms and conditions to learn how the website operates and the risks you might face. As always, practice safe gambling habits and gamble responsibly.
