Specifics of the Betting Industry in the Web3 Space

To put it simply, betting is sports gambling. Therefore, the betting industry brings together all the providers of this type of service, i.e., bookmakers. As a rule, they’re at the forefront of all FinTech innovations, since sports betting is directly related to finances. That’s why the Web3 sphere attracted the attention of bookmakers back in 2013-2014. Today, the largest representatives of the betting industry are actively integrating blockchain, and new Web3-oriented services are also being created.

Let’s consider the main differences, benefits, and advantages of Web3 betting compared to “traditional” sports betting in theory and using the example of a specific service. 

Betting Web2 Vs. Web3: Key Differences 

The number of “traditional” or Web2 bookmakers includes all classic online services and physical establishments whose visitors use basically the same services, only through operators. 

They all share certain characteristic features, the negative aspects of which are only apparent when comparing them to Web3 services. The main ones are: 

1. Centralization. 
2. Lack of transparency. 
3. No community. 

Centralization and lack of transparency pose risks to players due to scams on the part of betting platforms’ management, while the virtual absence of an organized community eliminates the possibility of collective influence on the processes. It’s worth noting that in this context, the “community” doesn’t refer simply to a group of guys drinking beer or anonymous users of a thematic forum discussing sporting events for betting. The “community” is defined by the ability to collectively impact the ongoing processes — there must be special mechanisms for this. They’re present in Web3 projects: for example, governance tokens or other types of digital assets that allow holders to participate in the management of a particular project. 

The Web3 sphere is also characterized by decentralization and transparency. What does it mean in practice? For instance, betting data is recorded on a blockchain network, and payouts are secured by smart contracts based on oracle technology. This excludes fraud and makes payouts almost instantaneous. In addition, the state of betting accounts based on blockchain networks can be checked by literally anyone, which reduces the risks of insolvency.

By eliminating the key shortcomings of the “previous era,” Web3 betting also opens up several additional advantages: 

1. Greater betting opportunities. Prediction markets, synthetic assets, a secondary tokenized betting market, and other mechanics not available to Web2 services. 
2. Integration with the decentralized finance sphere. The opportunity to earn not only from betting but also from providing liquidity, derivatives, and other DeFi products. 
3. Fan tokens and NFTs. Sports events have created a separate niche of digital assets to make money and build stronger ties between sports organizations, individual athletes, and their fans. 

Diving into the field of Web3 betting also entails learning the basics of the cryptocurrency market. This may not be the most obvious benefit, but crypto users are already saving a lot of money on cross-border transfers, which are incommensurably faster in time compared to bank transactions. 

Example of a Web3 Era Betting Platform

The Dexsport project can serve as a real example of a Web3 bookmaker. This is technically an innovative project for the betting industry — a decentralized multichain platform for sports betting. Dexsport already operates on BNB Chain, Polygon, OKC, and Avalanche. 

Dexsport uses blockchain technology to: 

• protect user assets; 
• guarantee user privacy; 
• ensure maximum transparency of the betting process. 

Some other advantages of the service, enabled by using cryptocurrencies and blockchain, include: 

• automation of all processes with the help of smart contracts;  
• no intermediaries and registration; 
• high speed of transactions and almost instant payments.  

Technically, the administration can’t block users or require them to pass KYC or other verification procedures. 

Another important benefit of Dexsport is its transparent policy regarding commissions, which are known as vigorish, vig, juice, or cut. This is a sore subject for users of “traditional” bookmakers, which can charge up to 10% on each bet. Web3 bookmakers in this sense are generally loyal and usually charge no more than 1%, however, Dexsport specifically offers zero commission on deposits and withdrawals. 

All processes are automated as much as possible, so the terms of transactions are prescribed in the code of smart contracts. This provides maximum security and transparency for the whole betting system. 

Dexsport accepts bets in BUSD stablecoins and 11 other cryptocurrencies, including the project’s internal token DESU. The token is traded on PancakeSwap and can also be used in the platform’s internal processes, such as receiving bonuses for using the platform. To summarize, Dexsport stands for more than just a Web3 betting platform. It’s a DeFi protocol that popularizes the crypto sphere among sports betting enthusiasts.