Betting is a game that has been around for centuries. The betting process has not changed much over the years, as people still want to place bets on sporting events, the national pastime in the United States, to name just one example. But the technology surrounding the betting process has evolved, and so has the industry. Today, there are online betting websites that make placing bets simple and fun, while also allowing sportsbooks to offer lucrative odds. But perhaps the biggest advancement in the world of esports betting has been the invention of blockchain technology. What is blockchain and how does it work?
Blockchain 101
If you’re unfamiliar, blockchain is a technology that underpins cryptocurrencies like Bitcoin. One of the core concepts of blockchain is transparency. Unlike traditional banking methods where transactions are kept private, blockchain keeps all transactions public, removing the need for any kind of trust. Further, since all transactions are public, it makes doing business a lot easier. In the world of cryptocurrencies, blockchain is often referred to as the ‘truth machine’. It’s a distributed ledger that is fully transparent, and anyone can view, verify, and contribute to its contents. If you’re interested in cryptocurrency, you can download a helpful blockchain calculator to help you determine the value of your coins.
How Does Blockchain Impact Esports?
Blockchain has changed the game for online betting in esports. Before the invention of blockchain, it was extremely difficult to build a betting platform on the internet. One of the problems was security. Since all transactions were kept private, it was difficult to audit the system and ensure that bets were not being faked. Simply put, without the ability to verify transactions, the entire industry of online betting in esports would not exist.
Also, for decades, sportsbooks have employed people to manually process bets. Since all betting transactions were done manually, there was a high possibility of fraud. But with the advent of blockchain and cryptocurrencies, all these problems have been solved. Today, there are fully licensed and regulated esports betting companies operating worldwide. Plus, the games used in esports have gotten much more sophisticated, with the incorporation of graphics processing units (GPUs) and faster hard drives, making gameplay much smoother. The combination of blockchain and GPUs allows for much more realistic simulations of sport, making games like CS:GO, for example, much more attractive for betting. Lastly, since blockchain is open-source and freely available, programmers have come up with a massive number of creative ideas for using it in everyday life. One such example is Chainalysis, an independently owned company that provides businesses and individuals with the tools and technology to explore, assess, and act upon the financial implications of blockchain and cryptocurrencies.
The Future of Esports Betting
The future of esports betting is extremely bright. With Bitcoin and other popular cryptocurrencies reaching record highs and offering investors incredible gains, there has never been a better opportunity to invest in esports. And with the recent addition of gambling to the Esports Championship Series, traditional sportsbooks have finally woken up and acknowledged the appeal of esports to bettors. Not only that, but with the world of esports becoming more global and players able to travel the world with their headsets, the betting community has never been bigger and more accessible.
What’s more is that the entire industry is still in its early stages. The infrastructure is still being built towards more transparent, auditable systems. Further, more companies are finding utility in blockchain and the ideas it represents. In the next few years, we’ll see a lot more innovation in the esports betting industry, and it will undoubtedly be a gamechanger.