Decentralized Sports Betting – the Latest Advance Aimed at Making Betting Beneficial for Everyone

It can‘t be denied that sports betting is a profitable business since ancient times. It has also been a very popular activity, no matter the bettor wins or loses. However, it was profitable mostly only to bookmakers and not the common punters. But now the picture seems to be changing a bit with online gambling. And with the advent of decentralized betting, it seems to be changing altogether.

At present the value of online betting industry is an astounding $50 billion and it’s expected to grow to $56 billion by 2018. However, just 5% of this is accredited to cryptocurrency betting. This is an incredibly huge chance since 95% of the fiat market is still unexplored.

Flaws in Online Gambling

Even online gambling has some inherent flaws. Here are a few of them.

  • Player has to create an account and password strength is his responsibility.
  • Most sites outsource their support thus making the user prone to theft and account hacking.
  • Regional restrictions also exist which limit the enjoyment of the experience, so, it’s not equal for everyone.
  • Users have to depend on a central authority, the site operators, to get paid which can bring in delays and waiting periods or even no payment at all.
  • And even the sites can fall prey to hacks, leaving users with no chance of recourse or recovery of their money.
  • Due to lack of transparency or chance of verification of accounts, there is always insecurity.

Sports betting

Blockchain Technology – the Solution

The solution to all these problems seems to be the Blockchain technology as brought in by the Extreme SportsBook platform. It provides complete transparency and eliminates the middlemen facilitating totally autonomous operations. One more benefit is that of unbiased participation; i.e. their clients and network are free to provide sportsbook services to anyone who wishes to participate by just downloading their software. No need of user accounts and passwords, neither the help from a support agent is needed. What authenticates every wager placed on the network is the client of XSB and their unique keys (known only to the clients). This also is useful while recognizing them while paying out their winnings. This system supports traditional sports as well as eSports, so, there is something for everyone.

Decentralized Sports betting for traditional sports

XSB Tokens

XSB tokens are an additional incentive which provides extra network security. Tokens are held without spending them, the method being called “staking” or “Proof-of-Stake” (PoS) which replaces the traditional method which other networks used for security and consensus like Bitcoin, which needs mining system for network software.

Tokens will be used for 2 purposes:

  1. Placing wagers
  2. Receiving payouts of winnings automatically through the blockchain

XSB tokens are bought at the rate of $0.25 per XSB during the VIP presale and at the rate of $0.35 during the public offering. You can get VIP registration at https://www.xsports.io and can also get a convenient estimate of how much XSB you can receive because there will be a calculation and display of equivalents of Bitcoin and Ethereum for the rate of that day alongside a calculator.

Decentralized Sports betting for esports

Staking and Rewards

Proof-of-Work (PoW) is the oldest and most well-known method of consensus used by networks like Bitcoin. This involves the use of special hardware to spot blocks which consist of transaction data and keep the blockchain moving further. This method, though time-honored, needs a huge amount of electricity, which is also called “hash power” or the speed at which you can find hashes while finding a solution and so, everyone is not able to participate.

The solution to this is Proof-of-Stake where you can store XSB tokens in your wallet and they can act as hash power and can operate on almost any computer without requiring additional power. Every time your XSB “finds” a block, 2 XSB tokens will be rewarded to you. The longer your XSB is with you, the more are your chances of finding a block and get rewarded.

Decentralized Sports betting

Masternodes

Masternodes serve as service providers on the network enabling private transactions (anonymous sending), instant transactions and budget proposal voting. For offering these services passively, masternodes get 2 XSB per block. Plus, they will also receive 0.1% of all bets placed on the network. Masternodes are worth 10,000XSB.

Transparency

Extreme SportsBook is aimed at providing as much transparency as possible for all users and the public for which decentralized sports betting through blockchain is perfect, a perfect vehicle for carrying information of bets and accounting. Their custom block explorer will recognize all kinds of transactions while maintaining anonymity, to offer users a full view of data, like:

  • Stake payments
  • Burned XSB
  • VIP bonus rewards from blocks
  • Winning and losing wagers
  • Masternode payments

XSB has got a totally autonomous system, offering everyone using the services having a trustless solution. This trustless system is the resultant of blockchain technology coupled with cryptocurrencies like Bitcoin or Ethereum and transfers information without needing a central processor/website. You can visualize this as a system where there is no middleman or “site operator” and every wager, win, loss or payout is recorded and can be verified by anyone who has access to the blockchain.

Decentralized Sports betting

What if an Event is Cancelled?

If an event is cancelled, your wallet will receive your money back. If an event is completed and outcomes are decided, winning bet will be paid out to the wallet of Extreme SportsBook from where it came.

When bets are placed initially, the XSB tokens used are burned. This is because of the fact that no central authority (wallet) receives the bets and winning payouts are formed during block formation. A wrong supply count will be prevented by accounting all this for and reflecting when querying the network through the block explorer or your XSB wallet.

Decentralized Sports betting

Security

Since the need for logins and passwords is eliminated, Extreme SportsBook brings a great improvement over the current solutions available on the market and Internet.

All in all, Extreme SportsBook has taken the challenge of taking the tradition of sports betting further in the form of decentralized sports betting with the help of blockchain technology and cryptocurrencies. With the use of new advances in automation, they are sure to offer users a service that doesn’t have to depend on middlemen, thereby making your bets and winnings far safer and faster.