Despite solving the issue of trust within the betting and prediction industry, blockchain platforms still suffer from issues of liquidity. This is visible in prediction markets like Gnosis and Augur, where it may take up to a week to grade wagers and resolve contracts. This is even more complicated with traditional sportsbooks that represent centralized authorities.
Problems of traditional sportsbooks
Traditional sportsbooks entails that users deposit money without earning any form of interests, thereby tying up funds for long periods of time. Also, even though wagers usually get instantly graded on centralized platforms, the fact that cashouts can take long periods to process, and the possibility of losing everything in the event of system collapse makes it even more complicated.
By introducing blockchain technology into the prediction industry, BlitzPredict solves the fundamental problems that exist therein. Such problems such as setting up multiple accounts, thereby needing to scan through multiple sportsbooks at intervals. This is usually a time-consuming process. When coupled with the liquidity issues mentioned above, bettors end up spending their time doing monotonous, inefficient work, with only a fraction of their working capital available.
The bane of competition
There exists stiff competition within the industry because of the fragmented nature. This leads to sportsbooks, betting syndicates and sports teams walling off their strategies and internal analytics, hoarding information from one another in the process. This implies that even though various departments work towards the same goal, the mostly do not share information with one another. This is unhealthy for the industry and indirectly pushes so-called experts into some unhealthy practices.
Because of the closed circuit of centralization and the unsecure database structure, these “experts” cannot be held responsible for their actions, hence it becomes difficult to check their activities.
As an an aggregator of sportsbooks and prediction markets. By constantly refreshing the odds like a stock market ticker, BlitzPredict ensures that users will always get the best odds available for a given bet. It also streamlines the process to make prediction markets as simple to navigate as traditional sportsbooks.
The platform’s incentivized expert analytics will benefit participants in more ways than one. Knowing fully well that they will be held accountable for their analysis since the blockchain is transparent and immutable, experts are bound to be more responsible and do more research. They are also bound to stake the platform’s BPZ tokens, hence more responsibility on their side. This entails that users who rely on expert analysis have better opportunities for more quality information for decision making purposes.
Solving the liquidity problem
By implementing the Bancor Protocol, BlitzPredict will further provide liquidity and low rates for the users. Users will be able to instantly exchange tokens without needing to use an exchange or find a buyer. The platform’s aggregator and liquidity reserve will ensure that users always get the best odds and receive guaranteed instant payouts. Therefore no more waiting days or even weeks for withdrawals to hit.
The essence of blockchain in various industries is to dissect existing processes and open up the inherent opportunities while providing more efficient ways of achieving better results. By decentralizing the prediction market, creating quality analytics systems and providing unlimited liquidity, the betting industry is bound to experience some major disruption.