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Cryptocurrency and Blockchain in Betting: Tasks of the Technology and Ways of Its Implementation

Author: Rode Arteaga
25 October 2019, 16:50
Votes: 3

Sports betting first appeared several thousand years ago. Throughout the centuries, the laws have been regulating betting and gambling. Gambling industry boom occurred in the 1990s when bookmakers began accepting bets online.

Cryptocurrency and Blockchain in Betting: Tasks of the Technology and Ways of Its Implementation

Cryptocurrencies, blockchain, and betting companies – how are these three terms related? What tasks and problems can be solved by a modern betting operator via introducing blockchain technologies? We have received the answer to this and other questions by analyzing the international market, as well as by talking to the Betmatch representative who shared the company’s experience of using this technology.

Crypto Betting: Reliability, Speed, ​​and Transparency

Typical modern betting platforms are characterized by the same problems for players: lack of transparency, payment restrictions depending on the geographical location and the lack of trust to site owners who can falsify results or withhold winnings. All these problems can be easily solved by the blockchain technology introduction into the betting system.

Players do not know where the funds are going, and they cannot track blockchain bets. Such bookmakers use cryptocurrencies only to attract new customers, but do not take the next step.

Blockchain technology can offer different solutions to this problem, which will help to break the circle of suspicion and create a new basis for trust to betting companies. One of these solutions is placing bets on blockchain technology.

Such a solution is already being implemented by some operators in different countries. Let’s consider the situation using the example of an international operator – Betmatch Betting Company.

Blockchain technology

Betmatch is a decentralized bookmaker that combines a classic betting business model with blockchain technology implementation for the social betting network. The Betmatch architecture consists of several components that work together and form a reliable and transparent betting system. Thus, a number of typical problems have been solved:

  • The human element and third parties’ influence on the bets processing, results displaying and payments to the client have been removed;
  • Cryptocurrencies are accepted without converting to another currency. It means that there is no fee for depositing or withdrawing funds when using payment systems, as well as there are no huge taxes on each win;
  • Smart contracts replace the bookmaker’s credibility. It means that bets will be made instantly, and an operator will not be able to delay or cancel the payout of winnings.

“In this case, the project’s priority tasks are protection against fraud and transparency of the bookmaker’s operations (players can review the platform balance). You can bet on the fact that betting will become more technological,” the Betmatch representative summarized.

Read more: How to Achieve Success in Online Betting

As the operator notes, the Betmatch system is built on the use of XBM internal token (Ethereum ERC20 standard). By using it, the company gave customers the opportunity to save much money on internal commissions or even take all commissions for themselves in case of winning. In addition, XBM tokens can be leased to other players in order to subsequently receive a small percentage of each win. In addition, XBM tokens will be given as a gift to active and useful community members, such as experienced forecasters or good sports analysts. The token is listed on the Latoken and Crex24 exchanges, where it can be purchased. At the same time, the company representative notes that a client can make a purchase immediately on the bookmaker’s site. That is why XBM can be purchased at betmatch.io.

customers

As for centralized betting servers, players can lose their money there because traditionally the company decides how much the player will receive at the end. However, Betmatch has been using two business models at once, and its goal is to create a long-term solution for modern betting services based on cryptocurrency.

After depositing funds, customers see a smart contract, which automatically shows the player’s balance and guarantees all payments – the dedicated liquidity pool’s state is always available for verification. Thus, this pool is an essential tool for customer comfort.

Betmatch has its every hundredth block uploaded to the public Ethereum blockchain. This block contains data on the private blockchain’s operation. On the one hand, this provides high speed for the entire system operation, and on the other hand – security, decentralization, and fault tolerance.

As mentioned earlier, the Brazilian authorities have started consultations regarding sports betting operations in the country.

Read more: Esports and Sports Betting Are to Implement All Technological Innovations in the Next 20 years – ICE North America Speaker

Read more: Real-time Messaging as a Key Factor to Increase Revenue from Live Betting

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