In sports betting, the adoption of blockchain technology has been a peculiar one. If you ask anyone what blockchain in betting is all about, those in the know will tell you about Bitcoin and other cryptocurrencies. Others cannot make a connection between cryptocurrencies and this emerging technology. It is not only in the betting industry, it is almost everywhere, people first learned about Bitcoin and other cryptocurrencies before they knew about the platform where all these capabilities are built.
It is a case of the child becoming famous before the parent is known. Even up to now, if you ask the majority about the relationship between cryptocurrencies and blockchain not many would tell. If you fall in this category, I would encourage you to read more on this emerging technology and as a gambling enthusiast familiarize yourself with the basics of blockchain in betting. In this article, we are going to explore how blockchain in betting works, the advantages of this emerging technology in online sports betting.
What is blockchain in betting?
For those still in the woods as far as blockchain technology is concerned, perhaps we should start by explaining in a summarized manner what blockchain technology is all about. Starting with the definition of the term, blockchain is a digital ledger of transactions that are duplicated and distributed across a whole network of computers. One main thing that you have to understand about blockchain is that it is distributed among nodes, which is a network of computers. It is built along with the concept of decentralization, meaning that there is no single entity that controls the system.
These elements make blockchain impossible to change. You will hear people use the term immutability, this means unchangeable. The way it is built makes it hard for an individual or even a group of users to tamper with it as its operation involves consensus. When users reach a consensus a new block of added. Each block has a unique code that includes all other blocks which were made before it. This is why it becomes hard to change anything. When you bring such elements in betting you build trust, which is the whole idea underlying the decentralized systems. Where people reach consensus and no single entity has control over the system.
So what do you expect with blockchain in sports betting?
A system where trust, security, and decentralization characterize daily operation is recommended all the time. Betting is an industry that the majority fear because of mistrust, lack of privacy, and manipulation by a few. We have heard of cases of sports betting companies conniving with football teams and officials to fix a match and give certain results. While blockchain in betting cannot solve this, it provides the betting fraternity with surety that some aspects of this industry cannot be tampered with. This gives them some bit of confidence, and that is what is needed. So what are the advantages that you get with blockchain in betting?
Building and enhancing trust
Blockchain technology is built in such a way that trust is enhanced in a system. When you know that blocks cannot be added to a platform unless there is consensus among the nodes, you will feel safe. This may be the technical explanation of the immutability element of blockchain, but when put into perspective it means that once your data, outcomes of the match, and other elements are put into the system, they cannot be changed. So we will trust the system because it represents the true picture.
It works well for both the bookmakers and bettors. For the bettors, they will rest easy knowing that they will be treated fairly. On the other hand, bookmakers who have put their operation on blockchain platform increases the chances of being selected based on the trust that bettors have on the systems.
For people who have received betinia promóciós kód or any other incentives from bookmakers, the knowledge that they will be honored gives confidence when it comes to placing bets with the sportsbook. For those who have been in betting for some time, they know well that trust cannot be traded with anything; it is a high currency that any entity ought to guard jealously. It is hard to build and once you have gained it, the relationship is taken to another level. Likewise, losing it can be disastrous as regaining it to similar levels is next to impossible. When you have a system that helps you build and enhance it, embrace it fully, for the benefit of your business and customers.
Online sports betting is bound to have some issues with security and privacy. Being a system that people interact online and sometimes with unknown parties, there are chances that some of the data and personal details may fall in the wrong hands. Blockchain in betting is the solution to all this, it is a secure and tamperproof system where the security and privacy of users are almost guaranteed.
Talk of when making payment using cryptocurrency, if you want to remain anonymous, blockchain technology features allow you such that f you are in a jurisdiction where betting is not allowed, you can use the gaps in the law to bet securely away from the hawkish eyes of regulators. The fact that your data cannot be accessed by a third party gives you confidence that you will engage in legal betting even when in locations where gambling is frowned upon. Security in betting is enhanced by the fact that:
- Blockchain-based betting sites cannot be hacked
- Changing any data in the system is almost impossible
- Making any change in the system involves the collusion of so many nodes and can still be detected and rejected
- Minimizing errors
Humans and systems are prone to errors but there are ways through which possible mistakes can be eliminated. With a bookmaker dealing with hundreds if not millions of wagers, chances of making errors are high. Reliance on blockchain in betting can assist in restricting the errors through the utilization of a broad network where data is scrutinized before nodes reach a consensus; this reduces the chances of errors further increasing trust in the system.
Blockchain technology being relatively new means we are just scratching the surface; we have a long way to go. In the sports betting industry, this emerging technology will enhance the industry by providing additional layers of security, building on trust, and providing more capabilities that go a long way in improving user’s experience.