How Blockchain Is Revolutionizing Sports Betting Payments?

Sports betting - a term that sounds exciting, adventurous and fun at the same time. Sports betting is one of the most popular types of gambling in which people bet on events through predictions and earn money for winning. 안전한카지노사이트

There are many sports that allow sports betting, such as football, cricket, basketball, golf, horse racing, etc. Over time, land-based sports betting is accompanied by online sports betting platforms, as the Internet pushes out new generations. their legs. 온라인카지노 

Sports betting and digitization

Analysts forecast that the global sports betting market is expected to grow at a CAGR of 8.62% during the period 2018-2022. This increasing growth of online gambling acts as an important factor in the overall growth of the market. The availability of digital platforms along with internet penetration has made it easier for people to engage in sports betting.

Since online betting does not require any ground presence or physical presence, it can reach more bettors through the internet. Millennials are embracing online sports betting even more because they often use mobile and computing devices. Despite the continued growth in digital consumption of sports betting, along with its growing popularity, challenges remain.

Liquidity issues in online sports betting

According to the Global Sports Betting Market 2016-2020 report, one of the most worrying issues for both players and bookmakers is liquidity. Traditional bookmakers operate in a centralized way, i.e. before playing, users deposit a certain amount into their account to place their bets. This has the effect of blocking user funds for a long period of time without interest.

There are several actors involved in the payment processing cycle of online sports betting, namely the company, customer, KYC and payment gateways. When a user makes a request to withdraw their winnings, payments are processed through payment gateways and routed to the customer. With blockchain, payment transparency is automatic. As a result, some predict that financial reporting costs could be reduced by 70%.

During this process, a huge percentage of the transferred money is taken as a fee by the payment gateways. Moreover, when the remaining amount is sent to the customer, he has to pay the assessed tax on it, which again leaves less earnings in his account. This cumbersome process leaves the end user with much less money than they deserve.

On the other hand, the cost of business operations for operators is rising and a large part goes into financial reporting costs, resulting in low margins for operators.

How does Blockchain solve the problem?

Blockchain – the technology behind leading cryptocurrencies such as Bitcoin and Ethereum – is emerging as a solution to such problems in the online sports betting industry.

How? Dive a little deeper:

Blockchain can address this challenge in the sports betting industry, resulting in higher payouts for users for correct predictions and winning bets, and increased margins for operators.

Blockchain introduces the concept of tokens that streamline payment processing. Tokens are any specific asset or instrument that can be traded in exchange for commodities, loyalty points, and even other cryptocurrencies.

Once a specific token is created by any online sports betting platform, all its users will be able to conduct all transactions within those tokens. The value of the token will increase as it is used.

When all players on the platform start trading tokens, the market value of the token will eventually increase, which in turn will lead to higher profit margins. Furthermore, the value of the tokens associated with them cannot fluctuate through the intervention of any individual or company, instead it will depend entirely on the use of the token by the users of the platform. It also makes the process of receiving payments and earning profits more reliable and secure.

Smart betting

When implemented into a blockchain-based sports betting platform, tokens guarantee instant and fair payouts to bettors. In addition, payments and other process like game logic when placed on Blockchain removes the need for a central authority to manage transactions, making these transactions highly secure and impervious to hackers.

The concept of "smart betting" can be implemented using smart contracts in online sports betting platforms. Smart contracts are self-starting codes that perform an action when certain defined criteria are met. A smart contract can be used in an online betting platform to automatically place bets on the occurrence of a specific event, such as a penalty kick in soccer.

Blockchain technology helps address the speed, transparency and cost challenges associated with cross-border payments. Secure and transparent payments through a blockchain-based betting platform will provide the sports betting community with certainty and guarantee of their investments by harnessing the potential of an irrevocable digital ledger of transactions on the blockchain. With many other similar use cases in the online sports betting industry, blockchain can create more trust and increase sports consumption even more. Thanks to blockchain technology, payment transparency is automatic. As a result, some predict that financial reporting costs could be reduced by 70%. 카지노사이트