The sports betting industry is exploding and will continue to be in upcoming years. There are several factors responsible for this rapid growth, including the emergence of the Internet, digital platforms, and the latest technology trends. Blockchain is one of the biggest emerging trends in online sports betting leading the industry towards advancement. Many sports betting software developers are adopting Blockchain to offer an enhanced digital betting experience to the players.

Not just one, but Blockchain is transforming online betting in several ways such as adding transparency and fairness in the betting game. However, it has a major role in transforming sports betting payments. Want to know how? This article has the right answer to unleash your curiosity. Before that, let’s understand what this technology is.

What is Blockchain?

Blockchain refers to a digital public ledger of transactions that is duplicated and distributed across the entire network of the computers on the blockchain. The term Blockchain originated from the fact that it involves a chain of digital blocks containing several transactions. Whenever a new transaction happens on the blockchain, its record is added to every participant’s ledger. Here the chain refers to a public database and the blocks are digital information. The decentralized database handled by several participants is called Distributed Ledger Technology (DLT).

Blockchain technology was first introduced as a record-keeping method for Bitcoin. However, ever since, it has introduced many applications in the business and cryptocurrency. The online betting industry is experiencing the most amazing application of blockchain, i.e. solving the liquidity issue in the sports betting payment and promoting smart wagering. Let’s see this in detail.

Blockchain and Sports Betting Payments

Liquidity is one of the common issues in sports betting that both players and bookmakers are concerned about. Traditional sportsbooks follow a centralized system which means users have to deposit a certain advance amount in their account to place the bets. Many times, such a process causes blocking of players’ funds for a long period without interest.

In online sports betting, a payment processing cycle involves several actors, such as the operator, KYCs, the customer, and the payment gateways. Once the user requests for withdrawal for his/her winnings, payment gateways process the payments and direct them to the customers. In this process, a significant portion of the transferred amount is acquired as a fee by the payment gateways. On receiving the remaining amount, a user needs to pay a levied tax, which again reduces the number of earnings in his/her account.

Not only users, but operators too, have less profit with this process, as a major part of earnings goes to financial reporting expenses and managing business operations.

Blockchain is a powerful Cryptocurrency technology and provides an apt solution to this major issue. The token concept in blockchain makes a payment more transparent and efficient. There are tokens representing any specific asset or utility that can be traded in exchange for loyalty points, commodities, or other crypto currencies.

Once a particular token is created by online sports betting software, all the users of the platform can perform transactions in terms of these tokens. The value of the token increases depending on its usage.

Once all the users on the platform start betting using the tokens, their market value increases, which eventually results in better profit margins. The value of other associated tokens can’t be adjusted by any company or individual. It completely depends on the usage of the tokens by users.

This whole blockchain-powered process makes the transactions more secure and reliable, be it receiving payments or earning profits. Also, users can have higher payouts on accurate predictions and bet wins. The improved pavement transparency, security, and more earning ability all together help operators build trust amongst users and keep them engaged for a long time, which eventually results in higher ROI.

On a Final Note!

With its amazing capabilities, Blockchain technology has been transforming the sports betting payment process. It is an advantageous technology trend for both operators and bettors. Therefore, if you are planning for sports betting software development, make sure to integrate technology trends like Blockchain, Cryptocurrency and more, to get a competitive edge and more ROI.