Last updated on June 20th, 2022 at 12:00 pm
GUEST POST BY GORACLE
Could Algorand be the future home of decentralized betting thanks to Algoracle?
Internet sportsbooks have long dominated the online betting business. They determine the odds, collect bets from gamblers, and compensate winners.
However, the industry has long favoured the bookmakers, who are able to arbitrarily set policies that benefit them, limiting winning players as well as setting high fees on winnings. Decentralized betting offers an alternative that can transform the betting industry.
Why decentralized betting?
Decentralized betting systems typically use blockchain technology that facilitate peer to peer betting. By cutting out institutions with large fixed costs, a much smaller margin can be deducted from winning players. In the world of skilled sports betting where every edge matters, reduced fees can mean the difference between being a winning player and a losing one.
Players benefit from a transparent and unique system towards ensuring a fair and innovative betting system for players. Centralized operators are well-known to limit winning players. Winning players consistently place large bets which make it difficult for centralized operators to balance their books.
Furthermore, payment on and offramps have historically been a pain point for players. Payment processors are generally slower and place additional fees on deposits, withdrawals, or foreign exchanges. As crypto currency adoption grows, the ability to use crypto as a payment mechanism makes decentralized betting more attractive.
How can Algorand become the future home of decentralized betting through Algoracle?
Blockchains must be able to connect to external APIs (Application Programming Interfaces) in order to receive and generate valuable sports data. To do so, blockchains rely on decentralized oracle networks like Algoracle to function as a secure bridge that retrieves data for smart contracts, validates it, and distributes it into the blockchain for smart contracts to consume.
Algoracle has reached partnership agreements with providers such as Oddsjam and Lsports to provide this data. These institutional grade providers aggregate data from a large number of sources such as official league stats and various bookmakers. Algoracle is also continually searching for institutional grade data providers to join its network, and aims to have between 5-10 sports providers by the time they launch in 2022.
The Algorand Blockchain
The Algorand Blockchain is home to Algoracle, which uses Algorand’s innovative technology to reach consensus on correct data quickly. It’s also self-sufficient, decentralized, and offers safe, scalable, and efficient qualities for real-world applications. Algorand is noted for its fast transaction speed and minimal transaction costs.
For example, Algorand can handle 1,000 transactions per second and achieves finality in 4 seconds. Developers may use the Algorand Blockchain to build on top of it while still utilizing data feeds and integrating other essential resources.
For example, many on-chain functions, such as settling market bets, are enabled by the Algoracle data streams. In addition, the value of NFT artifacts, the triggering of bettor cash distribution, correct sports pricing/results, and much more revolve around a tamper-proof source.
This is why more and more sports betting apps are being built on Algorand to take advantage of a scalable, safe, quick, and truly decentralized network capable of supporting many smart contracts. While many dApps are now being developed on the blockchain, Algorand sports app development is still in its early stages.
Final Thoughts
Smart contracts can assist sports betting in various ways, including payments, bet confirmations, prior event analytics, event recording, and monitoring.
With the robust architecture offered by the Algorand blockchain and Algoracle bring off-chain data on-chain securely and accurately. The betting industry is soon about to be taken by storm.
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