DeFi Betting – Explore The Next Generation Fair Gambling Platform

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October 26, 2022
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DeFi betting is set to disrupt gambling and bookmaking as we know it. Unlike the usual betting choices that are a little skewed to the operators – death to the house edge! – DeFi betting is completely managed by the blockchain system it’s hosted on, without any external intervention. And this can only mean brighter horizons for players expecting a clean, transparent model on which to place their bets on. That too at the expense of legacy systems that were built for profit. 

Let’s see what the future of decentralized gambling has in store for all of us.

What Is DeFi Betting?

defi-betting-platform

DeFi betting is a gambling system that is mechanized by the blockchain and its use of smart contracts. 

How it works is that users can act as either bookies or bettors and place their respective bets as logical contracts. All this money in the form of contracts will not be regulated by any middle person, which in the case of usual online betting would be the casino proprietors themselves. The system receives the unadulterated odds and betting results, which then drives the processing of all related contracts automatically based on the values received. Simply put, the system will award you your wins as fairly as possible based on your bet results. 

The DeFi betting setup allows all bettors a highly fair environment where the compliance to odds is naturally determined by code. It also serves as a guarantee that bets will not be biased for reasons of profit scraping, like what happens at most casinos with their house edges. Additionally, anyone and everyone will be allowed access here anonymously, providing an added layer of confidentiality for bettors. Even age restrictions will not apply. 

DeFi vs. DApps

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DeFi is short for decentralized finance, a monetary management system where transactions can be initiated and regulated by the activity of the group of its users. This allows all users access to a transparent and self-regulated financial system powered by smart contracts. As for the legitimacy of transactions, that’s mediated by entries into the blockchain’s open ledger, which cannot be altered by any single user. Such arrangements are usually hosted on public chains like Ethereum. In some cases, they may be hosted on other public altcoins as a means to conserve cost. 

DApps, on the other hand, are digital applications that run the blockchain or on a group of computers and servers. This is opposed to the usual app environment that we know, which runs on a server that is owned and regulated by a single entity or organization. The model of DApps allows the community that hosts it to collectively supervise and direct the operations and transactions, without a single regulatory entity. This particular nature of DApps is similar to that of the blockchain and gives users an added notch of transactional privacy.

Benefits of DeFi Betting

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This new technology and its entrance into the casino landscape brings about a handful of benefits that greatly profits players and punters. The transparent, robust, and publicly-indexed nature of the linked blockchain allows for a more open gambling field, one that was not within the capability of existing online casino models. Here are some of the perks that many in the industry have been raving about, let’s see them in scrutiny. 

DeFi betting offers anonymity

When betting with a decentralized model, anyone with an Internet connection will be able to access the gambling foreground. This means that any regional restrictions or age-centric constraints from the former betting models will now be obsolete. Although this may raise questions where age-appropriate activities and gambling is concerned, most punters are focused on the fact that they will no longer have to validate their accounts with sensitive information that will be at the mercy of a third-party entity.

All transactions are public

As you may already be aware, all blockchain entries will be recorded on an open ledger – one that is made available to every node that is a part of its chain ecosystem. Each linked computer or server will periodically be updated with the latest entry of a bet in order to preserve the confluence of transactions. At the same time, this forges the authenticity and accountability of the blockchain build, since everyone has real-time access to all new writings on the chain.

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Transactions are tamper-proof

In relation to the open nature of the ledger that holds every related transaction in the betting landscape, these guarded entries become resistant to external interventions. Due to the blockchain sending an updated copy of each block to every single user (in this case, the gambler), it would be a herculean task for anyone to attempt to make changes to any part of it.

Players will be in absolute control of assets

When it comes to bets, a classic model will have your money held by the operators and bookies – even online. But with this turn in technology, all your money will be solely in your control and management. Although the amount will be deducted and stored as a digital agreement, the fact that this bit of coding originates from your node will clearly dictate ownership to the rest of the gamblers on the chain. 

Smart contracts can be programmed for specificity

Smart contracts are nothing but strings of cleverly computed code. These things are capable of holding specific instructions in regards to value, limits, exclusions, and many other governing rules to allow a highly precise agreement to be drawn up. This is great for DeFi betting where player wins need to be attributed specifically based on the feed of odds and betting results.

DeFi base codes are open-source

With the basic code structure of DeFi betting platform made available to both developers and the general public, anyone can easily build a decentralized betting platform on a blockchain of their choice. But to players, this brings the benefit of allowing them to see exactly how a DeFi system works and scrutinize the elements involved in building the trust and transparency that it promises.

DeFi Gambling & Casino Environment

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The application of DeFi in a casino setting is extremely varied, mainly owing to the fluid nature of blockchain in real-life applications. Here’s what the introduction of this blockchain-driven system into your favorite, classic gambling picks would look like.

DeFi Sports Betting

Sports betting through the blockchain eliminates the need for third parties that hold on to all the books ordered. Instead, the players themselves lock all their wagers in smart contracts that will be released upon odds and results validation by the blockchain system itself. One wager will play the part of the gambler, while another corresponding one works as a bookie bet.

DeFi Poker

Classic poker has always been tagged with a massive house edge. But with DeFi betting, poker now benefits the community rather than a single operative entity – the casino. Usual distributions of profit would be 50% to token holders while the remainder adds on to the growing player prize pool. A portion of this may also be attributed to running costs or charitable actions that keep the source code open.

DeFi Casinos

These are a lot more common these days than you would like to think. DeFi casinos are parallel to iGaming platforms – where bets are accepted in the form of crypto. Think of it as your favorite Bitcoin casino. Games here are mostly designed for fast, efficient returns. 

Additionally, such gambling builds include a Proof-of-stake system that allows players to mine and stake in order to enjoy profits generated by their collective bets. In smart projections, industry frontrunners expect to see such platforms accept bets even for crypto market movements.

DeFi slots

DeFi slots are also poised to allow bettors to gain the position of the house. How this works is usually by the incorporation of NFTs into the slot machine game. Any player with ownership of an NFT is considered a profit partner and will enjoy a passive staking income via such NFT profit-sharing. These amounts can be massive depending on the value of the house NFT that they own.

In addition to that, profit partner players will also receive a fraction of native house tokens to feed back into their stakes as well as a percentage cut on rakebacks.

DeFi Betting – Changing The Face Of Gambling

With the injection of decentralization and transparency into gambling, you can be sure that this new step ahead will bring you added assurance with each bet. It’s an inevitable shift that is not only transparent, fair, and unadulterated – it also allows players to be a part of the profit pool and take home massive chunks of their gambling investments. 

Besides, the DeFi mechanism in betting is constantly evolving and DApps developers keep finding new ways to incorporate further beneficial elements to allow players and the general chain community to maximize returns. 

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