The introduction of blockchain has changed the sports gambling industry in many ways and very fast. There’s always a period of adapting to the new technology once it’s introduced, but in a broad sense, blockchain and cryptocurrencies have made the industry better.
In this article, we’ll discuss how blockchain has made the sports gambling industry fairer and why its features have now become the norm for any sports gambling site. This isn’t to say that there are no downsides to using blockchain technology, but that even with those downsides, they present an improvement.
Transparency
One of the most important features of using blockchain is the transparency it provides when it comes to the odds on which the players place a wager. These odds are now part of the code infrastructure itself; anyone can observe and compare them.
The top gambling sites have the odds displayed loud and clear to help the players make informed decisions rather than asking them to understand how the blockchain code works. However, the existence of a transparent, open-source code has led gambling sites to embrace such honesty in their design.
Smart Contracts
Smart contracts rest on blockchain technology and are now widely used for gambling and almost any industry. They allow the users and the gambling sites to set the contract terms as part of their code infrastructure. That way, the payments set by the contract are executed automatically as soon as the terms are met.
Smart contracts are especially important for gambling sites that have an international user base. Players gambling from across the world need to trust the site in order to use its services, and smart contracts allow for it more than any reputation of fairness ever could.
The Decentralization
Blockchain doesn’t rely on any centralized system, as is the case with traditional fiat currencies. This was its major appeal when the technology was first introduced, and it’s still one of the main reasons it’s so widely used.
The lack of central authority puts blockchain networks and cryptocurrencies out of the reach of governments and traditional financial institutions. That way, no single party can control the wagers or the odds of winning a wager, making them fairer in the process. It’s important to note that with wider adoption, more regulations in the industry can change how much control the governments have over crypto.
Provably Fair
The fairness of a gambling process can be mathematically proven when using cryptocurrency payments. When it comes to sports gambling, this means that the odds change in real-time as the game progresses. Most sports gambling sites allow the players to cash out of a wager if it’s not going as planned or they are not willing to take the risk anymore.
The combination of cryptographic techniques, transparency, and the decentralized nature of the blockchain allows users to audit the entire process. It’s especially important in a crowded market where every site must prove itself to its users.
Anonymous Gambling
Using traditional fiat currencies means the players must provide a lot of personal data to wager online. In all cases, the players need to provide a bank account or a debit card number, and in most cases, the sports bookmaking sites require the users to provide a photo ID directly.
Using cryptocurrencies, on the other hand, doesn’t require the player to provide any ID. The decentralized blockchain technology allows the players to deposit and withdraw funds without using the services of any government institution. In the last couple of years, the introduction of “know your customer” laws has started to change this, and the players will have to adapt.
A Broader Base of Player
Some governments still prohibit wagering on sports. That’s the case with many countries with a population interested in sports gambling and the technology and resources to do it. Cryptocurrencies, blockchain technology, and online gambling sites have provided an outlet for it, regardless of the government.
Sports gambling sites can be accessed from all over the world. With the use of VPNs, it can be done even in countries that otherwise don’t allow wagering. Payments made with crypto are also available anywhere in the world, as there are no centralized institutions to stop them.
Fast and Secure Transfers
The transfers made with crypto and blockchain are much faster than those made with traditional payments. In fact, since there’s no infrastructure between the users and the currency, the payments are available right away. That’s the case regardless of where the players are based and the amounts they are transferring.
The transfer costs are also lower than with traditional payments; therefore, the players can keep more of their winnings. It’s especially important to those players who wager small amounts, as they lose the most due to the fees and hidden costs.
Immutable Record Keeping
Blockchain transfers allow for immutable record-keeping. Once the transfer is made, there’s a clear record, and players can easily prove they’ve made the payment. This allows them to stop fraud and creates a more trustworthy experience for everyone involved.
The wagering history is also immutable; therefore, there’s no tampering after the fact when it comes to how the gambling site perceives the player and how they change their offer. All of this can be accomplished while keeping the players anonymous online.
Tokenization of Assets
Tokenization of assets is a process that involves representing ownership or rights to real-world assets on a blockchain through the use of tokens. This presents an interesting innovation for sports gambling. The users can bet with digital tokens pegged to the value of tangible assets.
For instance, users could bet on the future value of sports-related assets or participate in prediction markets that involve tokenized assets. This diversification of wagering options adds depth and variety to the sports gambling landscape. It expands the already existing array of sports bookmaking options and opens the industry to a new kind of player.
Community Governance
This feature isn’t yet popular and common enough that every sports gambling site has it. Still, it’s a useful option, and many sites are introducing it to accommodate the increased needs and expectations of the players. This ensures a more democratic and inclusive approach to managing the platform, promoting fairness and user satisfaction.
It means that as the players keep winning and getting more blockchain-based funds. They also get to influence the platform’s development, rules, and policies. Many sites have already initiated voting mechanisms for players to collectively decide on introducing new features and new potential bets.
To Sum Up
Blockchain sports gambling sites have changed how the games work, and now they are widely accepted by gambling sites of all sizes. The main innovation brought in by the use of blockchain is the transparency of odds and overall fairness compared to traditional fiat payments. It allows the players to inspect the blockchain code and make sure the odds are fair.
The wagers made with crypto are also easier to transfer and less costly than the ones made with fiat money. They are also decentralized and, therefore, available all over the world. It provides a broad base of players. Blockchain network provides immutable records and reduces the chance of fraud and mistaken transfers.