MAY 15, 2022
How blockchain betting technology is bringing the power back to the users
OCT 06, 2021
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The betting industry is monopolized by a few large online sports betting behemoths. Restrictive and ever-changing regulatory betting environments have created a prohibitively expensive barrier for new entrants seeking to capture any meaningful piece of the online betting pie.
However, the emergence of blockchain technology has created a unique opening for forward thinking brand in the sports betting ecosystem. This untapped territory could lead to an entire betting universe where self-regulated organizations are operated autonomously, independently, and democratically on the open blockchain is here to challenge the status quo of the large betting organizations. These groups operate without any restriction or geographic bias that the centralized oligopolies operate within. A truly trust-less, immutable, and unbreakable system is emerging.
One such example is a new blockchain protocol called BetSwap.gg, dubbed as the first truly decentralized betting exchange, built on the Ethereum blockchain with layer 2. It claims to be the first true challenger to the world’s dominant betting exchanges, where any customer, anywhere in the world, can connect their MetaMask crypto wallet in seconds, and start betting on any sport, with the same odds as those offered by the major players. It requires no name, email, mobile, or utility bill, with instantaneous crediting and debiting of transfers.
“BetSwap.gg solves all these issues, and more,” states Romy Jasmine, spokesperson for the BETSGG foundation.
‘The concept behind BetSwap.gg arose from a need by the global betting community who have endured for decades restricted access to betting platforms, endless KYC and waiting times, and difficulty in transferring fiat currency back and forth from their banks.”
The BetSwap.gg protocol is built as a DAO (a Decentralized Autonomous Organization), which means it is not managed by any centralized management team that is directed by a board of directors. It is operated on pre-programmed and locked smart contracts that run the DAO in a fair and transparent manner, where token holders and users who have the best understanding of their needs for their betting exchange (and not some C-suite executives) will have the sole ability to decide the long-term future of the protocol by democratically voting through a one-token one-vote system on any and all matters that can contribute to the enhancement of the protocol.
Jasmine and the team have strategically developed their product so that it truly caters to the mindset that sports betting can, in fact, be an investment.
“With the inevitable confirmation of crypto as an asset class, and with the ongoing boom it has been witnessing, this new approach to betting platforms will bridge the gap between investors and bettors.”
“For the first time, a bettor will be able to own a piece of their own platform through token ownership, and participate in the upside. They will have a voice in the protocol’s long term strategic direction and will share with the fruits of fair token ownership, rewards, and long term demand for the token.”
BetSwap is using the latest technology in order to deliver a product that is highly competitive and efficient for its users. For example, the zero-knowledge layer 2 is adopted in order to ensure higher speed and lower transaction gas fees in order to ensure a smooth user experience. It is also using innovative matching engine technology that connects makers and takers globally, where bets are made on all sporting and e-sporting events, linked via a third party oracle, which will ensure liquidity across the board for all major sporting events.
The protocol also allows normal users and traditional bookies to plug into the Betswap platform without limits or conditions found in centralized exchanges, thus freeing up users from restrictions brought on by traditional betting exchanges. In B2C, it opens up a limitless universe for sports traders, spread betting, and arbitrage hunters as well as retail punters in a seamless, borderless meta-universe with fair odds via a decentralized trustless and immutable blockchain protocol.
Throughout the user experience, BetSwap.gg never holds custody of its user’s funds (except during the course of a placed bet), thus freeing up the user’s crypto funds at all times for all other activities.
The most important distinction is how this DAO is run compared to board and shareholder-centric betting corporations. No special executive or board dividend or bonus for the founders, or unjustifiable multi-million pay packages. BetSwap.gg is programmed to redirect most of its revenue (aside from its operating team costs) back to the token holders through a regular token buyback and burn program, which aims to reduce the total outstanding token count over the long run by 90%, thus increasing demand for the remaining tokens and enhancing the value for all is users and token holders.
“The only way to operate as a truly decentralized platform was by having the users own this platform, not some fancy boardroom executives tied to profiting the shareholders instead of the users. This technological shift literally turns the betting tables on their owners.”
If proven successful, this new blockchain operating model may result in a seismic shift within the entire betting industry. The democratization of online betting could move from a centrally-controlled corporation to a decentralized one, opening the door to many new entrants around the world, pushing technological innovations, breaking down geographic barriers for users, and allowing the benefits of the exchange to be shared by the loyal community and users of the protocol. For all the cash-rich betting incumbents, ignoring this new technology might just be one bet they might not be able to afford.