Blockchain Betting: As US states legalize betting, regulators seek to protect consumers. Divvy.bet CEO Carlos Liang says blockchain and Web 3.0 fix it,
Sports betting in the United States has been going through a quiet revolution in recent years. Inspired by a landmark Supreme Court ruling in 2018, more than a dozen states have completely legalized betting or have taken steps to do so, while others are drafting laws.
The scale of the suppressed demand for legal rigging was clearly exposed by New York. Here, punters bet $1.6 billion in the first month since online betting became legal in early 2022. This made the state the capital of US sports betting, surpassing Nevada and New Jersey.
As state lawmakers and regulators build up the legal framework around online betting, one of their major concerns is ensuring that consumers are protected from an industry that has a poor track record of policing itself.
A big part of the solution should be to encourage betting platforms based on blockchain technology. The opening of betting in the United States coincides with the introduction of Web 3.0 technology that provides the industry with exactly what it takes to provide customers with custody of their own funds, completely transparent and free from centralized control and interference. .
crypto and betting industry
The idea that anything related to crypto can make the betting industry safer and more inclusive may sound strange to many. The crypto’s Wild-West reputation has solidified after the $60 billion explosion of the Luna-Terra ecosystem and a volatile drop in token values over the past few weeks.
Aside from the noise of the crypto market, however, the development of decentralized blockchain-based Web 3.0 technology is progressing rapidly. It is creating platforms that allow users to take back de facto control of their data and assets from large corporations. Blockchain allows platforms to be open, trustworthy, decentralized and transparent, eliminating many of the flaws that cause frustration with Web 2.0 platforms.
In the betting sector, it empowers and protects consumers by giving them full custody of the assets held by them on a single platform. Instead of handing over funds to a third party, all they need to do is connect their own crypto wallet to the protocol. Cutting out the middleman this way leads to a much better, more frictionless user experience. No more handing over personal data, no high withdrawal fees, no worries over manipulation of spreads by sportsbook companies.
Blockchain Betting: Unregulated Sites Vs Blockchain
Despite the legalization of online gambling in some states, Americans still bet billions of dollars through unregulated offshore sites that make them highly vulnerable to bad actors. These sites have been known to disappear overnight as well as freeze or steal users’ funds.
Users of the blockchain-based betting platform need not worry. Each transaction is governed by a smart contract, an immutable, autonomous program that operates according to terms agreed upon by the user. Platforms like Divvy.bet are raising the bar for online gambling by leveraging smart contract technology for self-regulation. This is in an effort to be easier to comply with as the gambling law takes hold and becomes legal in more areas.
At the same time, the Web 3.0 protocol provides players with complete transparency in the betting pool they are using, allowing them to manage their risks more effectively. Once a bet is settled, you will be able to view your funds, have complete control over them, and know that there is enough money in the house to pay you. This is a huge improvement over traditional sports betting platforms, which are effectively a black box on how your funds are being used and how much liquidity is available.
Blockchain Betting: Be the House
Perhaps the biggest benefit for users of decentralized betting platforms is that they have the opportunity to place bets as well as make them, allowing them to “become home” and increase their long-term odds of success. They can do this by providing liquidity to betting pools, just like users of the DeFi platform have been doing for years to earn yields.
Betting is an inherently risky pastime and does not guarantee success. But over time, experience has shown that the house enjoys and outperforms the odds better.
These innovations provide users with a level of autonomy, privacy and security that they have not been able to experience with traditional betting companies. They are precisely what regulators and lawmakers must adopt as they build the necessary legal framework to support the growth of the betting industry and protect consumers in their states.
About the Author
Carlos Liang is the CEO of Divvy.bet, a decentralized betting platform that allows users to “be home”.
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