Have you ever wondered about the future of the sports industry with tech? From VR and AR to wearables and smart systems, the benefits of technology are steadily spreading worldwide.
In sports, blockchain transforms the way betting works and ensures fair play in sports. Adopting blockchain technology equals saying goodbye to rigged bets, lost funds, and privacy issues, among other things.
In this article, Kate Richardson, a blockchain and cryptocurrency guru, looks into the future of blockchain-powered sports betting and what it means for bettors and operators alike.
Understanding Blockchain Technology
Let’s take it from the basics. If you’re not very familiar with blockchain, look at it as a digital ledger with only one difference. Instead of one person being in charge, everyone who participates gets a copy. The best part is that once the blockchain records information, nobody can change it.
Why is this a game-changer for sports betting? That’s because traditional betting platforms rely on centralized systems. Literally, this means one organization (a bookmaker) controls the odds, processes the bets, and handles the payouts.
In systems like this, transparency is not always guaranteed, which gives room for questions about fairness. Blockchain technology changes that, making sure that the entire network verifies every bet, every win, and every payout.
An Overview of the Perks that Blockchain Applications Afford the Sports Industry
Thanks to crypto and the blockchain, sports officials can guarantee transparency, security, and fair play in gameplay.
How, then, does blockchain technology improve sports betting? After spending some time researching blockchain applications in sports, you’ll realize the benefits go beyond better security. Here are some of them.
Security and Fairness in the Sports Ecosystem
From a personal level, the biggest win gained from using blockchain in sports betting is the enhanced security it provides. This differs from traditional systems where the unscrupulous can manipulate data.
Blockchain technology guarantees that every bet forms part of a permanent record, and wagers placed cannot be subsequently altered. All transactions are encrypted, and networks like Bitcoin or Ethereum blockchain are renowned for their extra layer of protection.
This means that your information is safe when gambling. Even if a hacker tried to work their way into a blockchain-based platform, they’d have a tough time accessing or altering anything.
Blockchain enables fairness, too. Let’s imagine a scenario real quick. When we use traditional sportsbooks, we must believe that our bookmakers are genuine and trustworthy, even if there’s no proof.
But what if these odds are biased or, worse, manipulated?
The immutable blockchain technology completely removes this with the use of automated algorithms, ensuring the odds and results are transparent and verifiable. This ensures fair play for everyone involved, and that’s a massive win for the future of the sports industry.
How Crypto Ensures Fairness in Sports Betting
Let’s move right into crypto. How does it relate to sports betting?
Ray Dalio thinks that “Bitcoin has proven itself over the last 10 years. It hasn’t been hacked. It’s by and large, therefore, worked on an operational basis…”
Cryptocurrencies make it possible to bet without disclosing your personal and financial information to your bookie. Bitcoin or Ethereum are also fast when it comes to transactions.
One or two times, you might’ve set a bet and won but had to wait days for your payout. Presently, with crypto, those delays are by-gones. Payments are almost immediate, and since the blockchain handles them, they’re more secure and transparent.
For cryptocurrencies, the exchange rate is much lower. This implies more of your cash out remains yours.
Blockchain Use Cases in Sports Betting
Blockchain has a lot of use cases that will eventually change sports betting, some of which are as follows.
Smart Contracts to Decentralize Transactions
Now, you can imagine a world where your bet pays out as soon as the match is over. Arguments, quarrels, and waiting around for the platform to process your payment become things of the past.
That’s exactly what smart contracts offer. Forbes projects that the smart contracts market will expand to nearly $1.08 billion by 2030 (from $190 million in 2022).
These contracts will undoubtedly give you your winnings once the included parties meet the conditions of the agreement. In sports betting, if you win a wager, this means the smart contract instantly pays you, no middlemen.
Digital Collectibles and Fan Tokens
Gary Vaynerchuk, stressing the immutability of NFTs, once said, “Bitcoin has a limit – NFT projects don’t.”
Non-fungible tokens (NFTs) can be best described as digital collectibles artworks with unique identifiers that typically attribute ownership to the holders. In the sports betting sense, NFTs can be anything, including sports memorabilia and exclusive access to events.
Blockchain to Enhance Fan Participation and Engagement
Blockchain technology is changing the global sports industry by giving fans methods of participating in their favorite sports. With fan tokens issued on the blockchain, you can contribute to important decisions regarding your favorite sports clubs. Thanks to blockchain technology, you’ll also be able to get exclusive content.
It’s another way of enhancing the fan participation experience and building a more transparent relationship between fans and sports organizations.
The Future of Blockchain Sports Betting
The future of blockchain-based sports betting is simply remarkable. Imagine live, in-game betting with immediate payout, powered entirely by blockchain technology. Think about platforms that use AI and blockchain together to provide real-time insights and predictions, helping you make smarter bets.
When using blockchain technology, anyone can verify every game result. For instance, in sports like football, one of the considerations bettors make when predicting both teams to score is whether the odds are fair. With blockchain, review platforms like MightyTips can better predict outcomes, but you can guarantee that the odds haven’t been tampered with. Besides, you get to enjoy access to dozens of leagues.
It’s expected that more businesses and organizations will explore blockchain’s potential uses in the sports sector. This will majorly be for sports management, which ensures fairness and transparency throughout the entire process. Blockchain technology can also monitor player statistics, manage fan coins, and share rewards with loyal sports fans.
New Revenue Streams and Fan Engagement
Blockchain technology offers different ways to make more money. For instance, Statista projects that sports betting revenue will have an annual growth rate (CAGR 2024-2029) of 6.47%. This should produce a market volume of US$132.90 billion by 2029.
Sports teams can attract more spectators and wagers by developing fan currency and distinctive, desirable assets.
Blockchain in Sports: How Blockchain is Impacting the Sports Industry
Blockchain integration shapes the future with cryptocurrency, speedy transactions, and a broader reach. Better still, while gambling on any website, you enjoy peace of mind because of the transparency and immutability of transactions.
Adapting blockchain technology in the sports industry ensures that streamers, gamers, and bettors can rest assured that their funds and data are safe. Whether in it for faster payouts, higher participation from fans, security, or fairer bets, blockchain tech has the answers.
