A Peek Into Decentralized Betting
Until recent times, online sportsbooks have dominated the online sports betting scene. However, the emergence of cryptocurrencies, DeFi space, and blockchain technology brings a new player into the market. As the world slowly adapts to the use of these technologies, the online sports betting sector is definitely looking to utilize its advantages over online sportsbooks.
Decentralized sports betting is a new take on online sports betting. It excludes established bookmakers from the equation. Instead of placing bets on online bookies, the betting platform has an open-source approach. It is also built on blockchain technology. These sites allow players to use a wide variety of cryptocurrencies in their betting.
How Does It Work?
Decentralized betting sites are platforms that do not have a central operator. There are no owners or managements that control the platform, unlike online bookies.
A development team creates the platform. They raise funds for the project by putting up the token in an initial coin offering (ICO). Here, they will pre-sell the tokens that players will use on the platform to place their bets.
When the platform is successfully created, they now stand back and let the community take it from there. Since the platforms are made in open-source code, literally anybody can make changes and improve it.
The good thing with decentralized sites is that it doesn’t need oddsmakers to set lines. The ones who create the markets and set odds are the bettors themselves. Other players will then decide if they want to make a bet against the player acting as bookmaker.
Benefits of Decentralized Betting Sites
There are a number of reasons why more and more players are planning to switch to decentralized betting. Here are some of them:
- Transparency: Decentralized betting sites are transparent, which means that all bets are recorded on a public blockchain. This makes it impossible for the site to manipulate the results of bets or to cheat players.
- Security: Decentralized betting sites are more secure than traditional betting sites. This is because they use blockchain technology, which is a secure and tamper-proof way of storing data.
- Anonymity: Decentralized betting sites offer players the option to bet anonymously. This is a major benefit for players who want to keep their betting activity private.
- Better odds: Decentralized betting sites often offer better odds than traditional betting sites. This is because they do not have to pay the same overhead costs as traditional betting sites.
- More betting options: Decentralized betting sites offer a wider variety of betting options than traditional betting sites. This is because they are not limited by the same regulations as traditional betting sites.
Drawbacks of Decentralized Betting Sites
Despite its many great benefits, decentralized betting still has a few drawbacks that make people hesitant to switch to it. Below are a few.
- Complexity: Decentralized betting sites can be more complex to use than traditional betting sites. This is because they use blockchain technology, which is a new and unfamiliar technology for many people.
- Lack of regulation: Decentralized betting sites are not regulated by any government or financial institution. This means that there is no guarantee that players will be protected if they lose money or if the site is hacked.
- Small market: The decentralized betting market is still in its early stages of development. This means that there are fewer betting options available and that the odds are not as competitive as they could be.
What lies ahead for Decentralized betting?
This is still a fairly young concept, but it has the capability to change the sports betting world. By offering players complete fairness and transparency, it answers long-standing concerns about traditional sports betting.
New platforms will most likely come out over time as more people are becoming aware of the advantages of decentralized betting. These platforms will be built on existing blockchain networks like Solana and Ethereum to utilize their transparency and security.
Expect to use smart contracts in decentralized betting platforms. These are contracts that execute automatically once it meets specific conditions. If utilized, this will offer instant processing of payouts and wagers.
Additionally, platforms might introduce the use of decentralized oracle networks. Oracle networks are responsible for giving external data to the blockchain. This is important in processing bets for sporting events. By using oracle networks, the platforms can provide accurate and reliable data.
All Things Considered
Decentralized betting’s future remains uncertain at this point. While it shows huge potential, it still has not attracted that many players into the DeFi scene yet.
That said, we need more time to know if this new type of online sports betting will be successful. Most decentralized betting platforms have only been around for a year or so.
Decentralized betting answers the problems of high vig, area restrictions, transparency issues, and deposit rejections. However, players need to overcome a learning curve when it comes to buying tokens, using token exchanges, and utilizing crypto wallets. Most players struggle with Bitcoin alone, what more of these concepts?
Still, we’re not closing our doors on decentralized sports betting. It still has the potential to dominate the online sports betting scene. We’ll just have to wait and see.
