Connect with us

Blockchain

Blockchain Application in the Gambling and Sports-betting Industry

Published

on

Human beings have an inner instinct of always going for growth and success. Thus, in our everyday life, we are looking for ways to complete our tasks in the cheapest, fastest and most comfortable way possible. It for this reason the gambling industry is growing at an unfathomable rate.

In the year 2018, the global gambling industry recorded a growth of 4.1 (CAGR) reaching 449.3 billion compared to 2014. Further, market size estimates indicate this growth will continue to soar and will net $565.4 billion in revenues by the year 2022 which is a CAGR of 5.9 per cent.

Factors leading to this Growth

Several factors are likely to drive this expected growth in the gambling industry. Among these include; rapid urbanization, an expansion of the experience economy, growth of emerging markets and rise of mobile gambling. In fact, in coming years this growth will further be fuelled by increasing use of social media, countries looking into legalizing gambling, an attractive source of revenue for governments which they can no longer ignore. Otherwise, the lack of government intervention will only lead to the proliferation of underground gambling, which is worse due to certain risks. These uncertainties include losing your money either once authorities pounce on your illegal gambling or the risk of losing your money through the gambling company colluding against you. Away from that, perceived global economic growth and changing consumer gambling habits are other factors likely to drive future growth of this lucrative industry.

A Close Examination of the Gambling Market and its Future

The global gambling market is segmented into three different types and these include sports betting, lotteries, and casinos. Sports betting is the fastest-growing segment with a CAGR of 6.9 per cent while the lotteries in the period ending 2018 were the biggest gambling market with a revenue share of $207.3 billion which is 46.1 per cent of the entire global gambling market size. Each of these 3 main categories is further segmented into either offline, online and virtual reality (VR) which is categorization depending on the sales channel.

Going forward, online gambling is poised to be the leading segment in the gambling industry with a market size forecast of $102.97 billion by the year 2025. In fact, this growth is forecasted to happen between 2019 and 2025 with a CAGR of 11.5 per cent. Factors driving the growth of this segment include a surge in adoption and use of smartphones as well as improved access with ease to casino gaming platforms. Precisely, an increase in Internet penetration plus the availability of the affordable mobile application for betting will continue to spur the growth.

Globally, Asia-Pacific is the largest market with 32.7 per cent of the gambling market as of 2018. Regions closely following are America and Western Europe. An interesting market trend, Africa and Asia-Pacific will be the fastest-growing regions for the global gambling market at 7.7 and 7.9 respectively. South America and Eastern Europe will grow at CAGR of 6.13 % and 6.12 % respectively.

Interesting Fact: “Africa and Asia-Pacific will be the fastest-growing regions for the global gambling market at 7.7 and 7.9 respectively

Blockchain to Play a Key Role in the Gambling and Sports Betting industry

Gambling and sports betting especially those sold by online channels will continue to flourish as aforementioned. However, the gambling industry has its own set of bottlenecks, which could hinder or stall the anticipated growth. Some of these challenges include:

  1. Lack of Transparency and Trust
  2. Fraud
  3. Infective Payment Systems
  4. Lack of personal privacy
  5. Inaccessibility
  6. Huge costs
  7. Centralization of Prediction Markets

Blockchain technology is witnessing its application in almost all industries at a high growth rate. The technology has been successful in its application in the cryptocurrency domain owing to its important features including immutability, decentralization, transparency and improving data security and safety. Likewise, these features can or already being applied to transform the gambling industry. More so, blockchain technology is proving to be the silver bullet solving challenges listed above encountered in the gambling industry.

  1. Improving Transparency and Trust

I bet we all know of the statement “the house always wins” meaning online gambling users will lose in one way or another. Even if it means the house using tricks and scams to make more money. Online gambling businesses earn money by having players lose more often. Users are inclined to believe these companies do have a special switch that will occasionally turn the odds against their favour. Consequently, knowledge of these vices from casinos by players has led to many keeping away from gambling. As a result, online gambling sites end up losing money.

Online gambling companies using blockchain technology are harnessing this technology to bridge the gap initially eminent between users and operators. For instance, using blockchain smart contracts aid verification of records and this is available via a shared ledger. Hence, it is not possible to manipulate data the last minute to favour the house against the players, thus, increased transparency.

  1. Reducing Fraud

Online fraud is a major concern for most gambling sites users. Moreover, it accounts for significant loses in the industry. One possible way of executing fraud is a player acting smart and decide to defraud an operator when withdrawing or even depositing money into the casino. Other possible existence of fraud in the gambling includes fraudsters who hack the gambling site’s system by accessing it through the servers’ back door. Worse still a lot of online gambling sites will require personal information of users and this may be an incentive for fraudsters to hack such systems to access the system and put their hands on such important data which online casinos cannot guarantee of its security.

Blockchain technology is best suited to solve this challenge for the industry through the implementation of high-level encryption used to secure transactions and data on gambling platforms. Further, having the blockchain’s distributed ledger renders it impossible to manipulate anything even by hackers in the system. One such platform with immense levels of encryption and has been successful in securing user’s funds and data is Playbetr.com with its winning automatically calculated and sent to winning users transparently and securely thanks to smart contracts.

  1. Effective Payment Systems

Traditional banking systems are a major hindrance to the flourishing of online gambling and sports betting platforms. This is because it is possible to withdraw money into a bank account or on a credit card only to have the bank confiscate or block the transaction. More worrisome is the fact a player using traditional money withdrawal options such as PayPal or banks they may have to part with a huge commission or unexpected fees. Again this may not be a guarantee that still the financial service providers will ensure processing of player’s payments. As a result, users have been left to wait for days or encounter other payment delays with no explanation given by the banks.

Gambling and sports betting platforms using blockchain technology such as Playbetr.com have the option of issuing own native cryptocurrency that will be used within their ecosystem. In fact, the Ethereum casino and sportsbook uses its native gaming coin known as Playbetr Coin (a stable coin pegged to the USD). Also, the online gambling platform supports other cryptocurrencies for deposit and withdrawals including Ether (ETH), Bitcoin (BTC), Litecoin (LTC) among others. Thus, allowing fast processing of payments when compared to the use of fiat money or traditional banking systems.

  1. Introduction of Anonymity

Conventional gambling companies are required by law depending on the country of operation to comply with certain regulations that may impede the realization of anonymity for players. For instance, it is common when creating an account and further during verification to face the challenge of having to supply numerous documents. Not only does this process make the whole exercise of creating account lengthy but also time-consuming this limiting number of players.

Implementing blockchain technology allows gambling platforms to introduce anonymity feature. This means users do not go through the rigorous process of sharing their personal information when creating accounts or transacting. This is an important feature to lock out hackers who may find it attractive to hack such platforms.

However, the need to have user’s enjoy anonymity is being undermined by government intervention through introduction of AML and KYC legal requirements for companies dealing with cryptocurrencies. Hence, lots of gambling platforms will request users to verify own identity before transacting on their platforms to comply with legal requirements.

  1. Increase Accessibility

A lot of countries around the world are yet to legalize online gambling thus prohibit betting and gambling activities. Therefore, denying gambling enthusiasts access to a game they love leads them to use illegal bookmakers. Eventually, players who use such illegal services end up losing their money often with illegal bookmakers failing to pay because it is not enforceable by law to have them honour player’s payments.

Blockchain technology solves this challenge by allowing gambling entrepreneurs to develop decentralized platforms with a feature of using cryptocurrencies. This use of digital currency makes the platforms accessible all-over the world. Besides, withdrawal is quick, no limits and payments are irreversible and automatic thus no cases of fraud or non-payment.

  1. Rewarding Loyal Customers

Conventional gambling platforms are known for not rewarding their loyal customers. If a player loses despite their loyalty they end up not receiving any compensation. Eventually, lots of traditional gambling companies are losing their customers whom they could retain with ease only if they leveraged on technology with an attractive incentive scheme.

Blockchain-based gambling companies significantly reduce their operational costs by eliminating the costs of intermediaries and losses initially incurred due to fraud. Therefore, they can use such savings to engage and retain loyal players by returning some portion of money lost to users monthly or even award the gamblers special bonuses.

Playbetr.com is one such company with an attractive loyalty reward program. Each time a user plays on the gambling site they earn certain loyalty rewards. For instance, the casino has VIP benefits namely rakeback, lossback and betback, which are all, based on the user’s status points and what’s more, all these are paid on all wagers.

  1. Huge Costs

Casinos do take a certain average percentage share (house edge costs) from their players as a strategy of ensuring the survival of the platforms. Incomes realized by casinos using this approach are used to pay employees and profits that go to shareholders.

Gambling platforms using blockchain technology can cut down house edge costs by leveraging on their other operational costs, which are at the minimum because of using this technology.

  1. Decentralized Prediction Markets

Prediction markets have always been in existence but with centralized structures. Therefore, this centralization leads to many limitations and risks such as lack of global access, a limitation on types of markets to trade or create and having the players place their trust on market operators to resolve markets correctly and not to steal funds. Centralized prediction markets are also costly with some charging fees as high as 10 per cent of profit while others have limited betting options.

Integrating blockchain technology onto a gambling platform improves the opportunity of users to access decentralized prediction markets. As a result, gamblers can use a betting arena to place bets on almost everything. Betting choice range from sports to elections with players also have access to the most accurate data leading to the most probable outcome of events without market operators interfering.

 

 

 

 

 

 

The post Blockchain Application in the Gambling and Sports-betting Industry appeared first on coinweez.

Source: https://coinweez.com/blockchain-technology-disrupting-the-gambling-industry/?utm_source=rss&utm_medium=rss&utm_campaign=blockchain-technology-disrupting-the-gambling-industry

Blockchain

Bitcoin Difficulty Ribbon Could Indicate Imminent Price Increase

Published

on

One is called the difficulty ribbon, and it has just broken out of the green buy zone for the first time since March in terms of compression. The metric was reported by analytics provider Glassnode, which added that historically, these had been periods characterized by a positive momentum indicating significant price increases.

Historical Bitcoin Buy Signal

The Bitcoin difficulty ribbon was created by chartist Willy Woo. It consists of simple moving averages of network difficulty enabling the rate of change of difficulty to be easily seen. Periods of high ribbon compression, such as the current situation, have been historically good buying opportunities.

There have been several significant price increases over Bitcoin’s lifespan that followed this ribbon compression breaking out of the green zone. The most recent was around April 2019 when BTC prices surged from below $5k to top out over $13k just three months later.

It was also observed that there had been a massive divergence in difficulty ribbon compression and Bitcoin price over the past six years. However, the chart has used a logarithmic price chart, which may have caused that anomaly.

Bitcoin’s hash ribbon is a similar metric, and CryptoPotato reported that it was flashing buy signals back in July. In the five weeks that followed, BTC price surged 34% to make its 2020 high.

You Might Also Like:

BTC Price Action Update

Looking at the shorter term, Bitcoin’s price chart has just printed another ‘Bart Simpson’ pattern with a sharp 2.3% decline in just over an hour, wiping Monday’s gains.

Prices had recovered to $10,725 at the time of writing, and sentiment appears to be bullish for BTC, according to a recent poll by analyst and trader Josh Rager.

Bitcoin is currently trading right on the 50-day moving average, which is acting as resistance at the moment. The next step above this is a break above $11k, while on the low side, there is strong support at the $10k level. Analyst ‘CryptoHamster’ added:

“After the breakout the resistance line became support. Now it is getting tested. If it holds, it would be a very nice sign. But it has to hold, otherwise the whole growth is just a short squeeze.”

Short term charts suggest price could go either way, but longer-term on-chain analytics, such as the difficulty ribbon, are more bullish.

SPECIAL OFFER (Sponsored)

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited – first 200 sign-ups & exclusive to CryptoPotato).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.


Source: https://cryptopotato.com/bitcoin-difficulty-ribbon-could-indicate-imminent-price-increase/

Continue Reading

Blockchain

Bulgarian National Convicted For His Role in a Bitcoin-Related Crypto Exchage Scam

Published

on

The owner of a cryptocurrency exchange has been recently convicted in a transnational scheme of defrauding people through an online auction fraud. Court says the scam reached a multi-million dollar scale.

At Least 900 Americans Victimized

As per a recent report, people who suffered from the fraud were probably more than 900 American citizens. According to the official statement, 53-years-old Rossen Iossifov, formerly of Bulgaria and reported owner of a Bulgaria-based Bitcoin exchange R.G. Coins, was convicted of both conspiracy to commit racketeering and money laundering. After a two-week trial, the jury in Frankfort, Kentucky and U.S. District Judge Robert E. Wier scheduled the sentencing to Jan 12, 2021.

Reportedly, some of the Romania-based members of the group posted a false advertisement to promote an online auction and sales websites, among which Craigslist and eBay. The ad promised its victims high-cost goods (typically vehicles) that did not exist.

As per the release, members of the scam would use stolen identities to promote and convince their victims to send money for the advertised items via “persuasive narratives”. For example, some of the ads had impersonated a military member in need of selling the advertised item before deployment.

The scammers also provided invoices with trademarks of reputable companies to their victims, making the transactions seem legit. The legal document also reveals that members of the conspiracy set up call centers, offering customer support. This way they would provide advice to client questions and “alleviate concerns over the advertisements”.

You Might Also Like:

Converting The Stolen Funds Into Crypto Assets

According to the official statement, once Iosiffov received the victims’ funds, he and his fellows would convert them into crypto assets and transfer them to off-shore money launderers.

As per the court documents, “since at least September 2015 to December 2018, the Bulgarian exchanged crypto assets into local fiat currency on behalf of his Romania-based partners in the scam, knowing that Bitcoin presented the proceeds of illegal activity.”

According to the court statement, in just two and a half years, Iossifov exchanged more than $4.9 million worth of Bitcoin for only four of the members of the criminal team.

A total of seventeen defendants have been convicted in the case. Three others are fugitives. Police departments in the U.S. and Romania have led the procedures on the case.

It’s worth noting that the US DOJ is becoming increasingly active in pursuing crypto-related fraud. As CryptoPotato reported earlier, it went after 280 cryptocurrency accounts related to hackers from North Korea.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited – first 200 sign-ups & exclusive to CryptoPotato).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.


Source: https://cryptopotato.com/bulgarian-national-convicted-for-his-role-in-a-bitcoin-related-crypto-exchage-scam/

Continue Reading

Blockchain

Aave Governance is Now on Mainnet: Incoming 100:1 Token Split For LEND?

Published

on

The Aave Money Market DeFi protocol is now about to be more decentralized than ever. In an announcement published on its official blog on 25th September 2020, the team reported on the successful launch of the Aave Governance on the mainnet.

This means that users of the protocol will now be able to vote on critical decisions for the project’s future. As Aave explains, the governance implementation was active in the Kovan and Ropsten testnets, giving users the ability to experiment with how to participate in the voting process for various improvement proposals, known as AIP.

Bye LEND Welcome AAVE tokens: Aave’s First Proposal

Unlike testnet implementations, the effects of launching governance on the mainnet are now more formal and reflect the commitment of the development team to empowering the community. The first AIP for which users will be able to vote involves a token migration and the total supply reconversion.

Should the first AIP be approved, the LEND tokens will become AAVE tokens, and the total supply will drop by 100:1. While this may give the impression of less liquidity, the reality is that the value or market cap should, in theory, remain the same as the AAVE holdings in the owners’ wallets would also decrease proportionally.

You Might Also Like:

“The major benefits of the migration is that we activate the Safety Module, meaning that AAVE token holders can stake their AAVE and earn,” told us Aave CEO, Stani Kulechov.

These modules are created to secure the protocol and would be used to recapitalize the platform in case of a deficit.

Will exchanges support the Lend – Aave migration? According to Kulechov, “Major exchanges will support after the migration is complete; however, they will separately announce on the support.”

More Incentives for the Community

The Aave team also plans to put under consideration the possibility of including part of the fees within these Safety Modules. In this way, it is guaranteed that the security of the protocol increases with its usability.

stani
Kulechov, Aave CEO. Source: Twitter

“The SM will act as a recapitalization mechanism, so in the case of a shortfall event, your stake may be slashed up to 30% to cover the deficit. The idea behind “safety mining” is to reward community members who stake their AAVE to promote the safety of the protocol.

In addition to the Safety Incentives, users would have the opportunity to earn Ecosystem Incentives (EI) for supplying and borrowing assets from within the platform. They hope that the community will also be able to decide how to distribute specific incentives in the near future.

Aave is one of the longest-running DeFi protocols in the ecosystem. It allows users to lend and borrow certain assets, putting others as collateral. However, interests are automatically determined by supply and demand according to parameters coded within the protocol.

Besides, Aave became famous for allowing flash loans. This mode allows a person to take an unsecured loan on the condition that it is repaid before the next block is mined.

SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited – first 200 sign-ups & exclusive to CryptoPotato).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.


Source: https://cryptopotato.com/aave-governance-is-now-on-mainnet-incoming-1001-token-split-for-lend/

Continue Reading

Trending