Tech

Blockchain technology in online sports betting: the basic advantages and obstacles

Can you imagine an online gambling environment where sports betting is anything like you currently know? Or bookmakers, being at Allbets, operating with a totally different functioning system and punters placing their bets in a totally different manner? Of course, this might sound so futuristic right now, but the reality is that it is not so far from the soon-to-be reality!

Owing to the blockchain technology, a new world of online sports betting is becoming more and more a feasible scenario. And in this scenario there are so many new things to consider and learn in betting, that it is going to be a literally new experience for punters.

Blockchain technology is based on a new conceptualization of a database. A database that is immutable, transparent, decentralized, highly secure and revolutionary in its functioning. What blockchain technology does can be described by comparing it to the traditional databases – it is a public ledger, that stores data in sequential blocks, that contain information. Everytime a block is filled with data, another block is added in the chain to formulate a time series-approach to the database system. The blockchain technology uses a multiple-node system that spreads the storing of blocks across the network and as such it eliminates the need for a central server for maintaining the database.

What blockchain technology can do in sports betting…

Blockchain technology can liberalize online sports betting from the regulatory frameworks, limitations, restrictions and impositions made either by governments or by the very same shareholders or top executives of the online bookmakers. It can extinguish geographic barriers, enabling punters from all parts of the world to have access to online sports betting. It can bring a whole new fresh and innovative twist in the betting experience and the betting operations.

So, let’s see what this means in practice.

The advantages of blockchain technology in online sports betting

Blockchain technology ensures high-end security due to its decentralized structure and its chronologically-chained blocks. All transactions are stored in a chronological manner, in a chain of blocks that are dispersed and spread, which means that they can’t be tampered in any way. So, transactions and data are prevented from any fraudulent practice, as no one can interfere, alter, delete or manipulate them. Punters, therefore, are provided the maximum security in all their transactions when it comes to sports betting.

Blockchain technology increases transparency and optimizes sports betting integrity as well. The decentralized structure enabled by the blockchain technology has two critical implications: first, it means that there is no need for some entity to control, authorize and centrally manage the transactions. Rather, the transactions are publicly available to all parties involved and so they all become widely transparent. And this brings us to the second implication, which is that it strengthens the integrity of sports betting, as decentralization also requires streaming of data publicly.

On top of these, blockchain technology also enhances speed of payments for punters. While with traditional online sportsbooks, bettors have to wait for third-party authentication when actualizing withdrawals of money and this might take even days in some cases, with blockchain technology payments are made very quickly, without errors, without authentication processes, authorization procedures and verification actions. So, payments are secured, quick and 100% safe and bettors don’t need to undergo the lengthy process that is in effect presently in the traditional online bookmakers.

Blockchain technology, further, allows punters to maintain their privacy, anonymity and ensure confidentiality of their transactions. In sports betting, online bookmakers typically require their customers to make subscriptions by submitting a number of identification documents, personal information and authentication papers. After a normally lengthy procedure, punters get to place their bets and engage in transactions with the bookmakers. With blockchain technology in online sports betting, there is no need for this process – the blockchains don’t store personal data, but transactional data and as it is decentralized and transparent, there is no requirement for revealing one’s identity or other personal info.

Obstacles in blockchain technology

While blockchain technology is promising and attractive for the online sports betting industry, there are some obstacles which can potentially limit its capabilities. Such obstacles are the costs of associated technology, the costs of implementation, the possibility of limited storage capacity at some point as well as the threat of illicit actions concerning the technology itself. But one thing is for sure: despite the obstacles, it is expected that blockchain technology is going to become a dominant approach and is going to be adopted by more and more industries across the world.

 

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