What is On-Chain Betting Software?
As we’ve covered in previous posts, innovations in technology are driving the iGaming industry forward. Changing regulations and player preferences are pushing software providers to be at the top of their game. However, as online gambling becomes more and more mainstream, there is a growing demand for transparency, security and fairness. This demand has created on-chain betting software, a technology that is changing the way we place bets online.
In this post, we’ll break down what on-chain wagering is and how it functions, with a focus on how Lion Gaming employs it in the Fer0x Casino and Sportsbook platforms. Whether you’re new to the industry or a seasoned blockchain pro, read on as we discuss how on-chain betting software is changing the game.
What does “on-chain” actually mean?
To understand what on-chain betting software is, it’s important to first learn the appeal of on-chain transactions. In short, when people say “on-chain”, it means that some sort of transaction has been recorded on the blockchain. The beauty of an on-chain transaction, such as the ones found in blockchain sportsbooks, is once it has been recorded, it cannot be altered or tampered with. This provides both the bettor and the operator with a digital receipt. This ledger ensures complete transparency as either party can view the transaction details.
Traditional iGaming experiences vs. on-chain betting
Traditionally, bettors place wagers with an assumed level of trust in the operator. Players trust their bets are placed securely, that the outcomes are fair, and that their winnings will be paid out promptly. However, this trust can be occasionally misplaced, leading to disputes. Unethical operators can accuse players of cheating or blame a malfunction in the game to avoid a payout.
This is where on-chain betting software can make a serious impact. It offers a complete paradigm shift in the iGaming industry.
Placing a bet on-chain provides a bulletproof record on the blockchain, serving as irrefutable proof of the wager. Operators can no longer claim the bet was never placed, and cannot accuse players of cheating. Smart contracts, which are the tools that govern the game’s rules, ensure fair play and automated payouts to players. Furthermore, unlike legacy casino games, on-chain games are Provably Fair. This allows players to independently verify their results without the need for a third party.
What are the benefits for operators?
Operators can also enjoy some substantial benefits from the adoption of on-chain betting software. They no longer need to worry about malfunctioning games, chargebacks or fraudulent transactions facilitated by the use of traditional payment rails such as credit card payments. Furthermore, operators can handle disputes with bettors with ease due to independently verifiable results that can be easily read on the blockchain.
On-chain betting vs. crypto payments
Is on-chain betting the same as using crypto as a payment method? The answer is no. While both involve using cryptocurrency, on-chain wagering is far more comprehensive. The entire transaction takes place on the blockchain. Merely utilizing crypto as a payment rail doesn’t take advantage of the benefits that blockchain technology and smart contracts offer. For a more detailed breakdown between the difference between the two, check out The Difference Between On-chain Wagering vs Crypto as a Payment Rail.
Sports betting with confidence
The growing demand for trust and transparency is extending beyond the realm of online casinos. Sportsbooks are experiencing an increased demand as well. Historically, bad faith operators can cancel wagers on a whim, especially when there are changes in a team’s lineup. When a player signs up and agrees to an operator’s terms of service, there’s almost nothing they can do to successfully dispute a cancelled wager.
On-chain betting software offers a solution to these issues. Just as with online casinos, there are public receipts for the wager on the blockchain to prove a bet was received and accepted. This makes it impossible for sportsbook operators to deny wagers. Smart contracts lock in the terms of the wager and also guarantee that operators have sufficient liquidity to pay out potential winnings.
What makes on-chain wagering so effective?
There are a few aspects of on-chain betting software that allows it to be such an effective tool. We have outlined some of them below.
Transparency and the immutable ledger
Arguably the most compelling aspect of on-chain betting software is the unmatched level of transparency it offers. Every single aspect of the betting process is recorded on-chain, creating a fully transparent and traceable path for every transaction. This will not only build trust between operators and bettors, but also provide regulatory bodies with an efficient way to monitor and ensure compliance. This is accomplished via immutable ledgers.
The blockchain in inherently unchangeable. Once a wager has been placed on-chain, it becomes part of a fixed record. Once placed, it cannot be altered or changed in any way.
On-chain betting software also brings Provably Fair games to the fold. Unlike traditional casino games, Provably Fair games allow players to independently verify game results without the need for a third party. Through cryptographic techniques, players can confirm the game’s fairness, providing trust and transparency that was previously unattainable in iGaming.
Security and fraud prevention
The use of blockchain technology and smart contracts in on-chain betting software significantly enhances security and fraud prevention as well. Traditional payment methods can be vulnerable to chargebacks and fraudulent transactions. However, with cryptocurrencies and smart contracts, once a bet is accepted and recorded on the blockchain, it cannot be reversed or disputed. This eliminates the risk of chargebacks and fraudulent activities, providing a more secure environment for both operators and players.
Reduced costs and improved efficiencty
In addition to the trust and security benefits, on-chain betting software also offers significant cost savings and operational efficiencies. Traditional payment methods often involve third-party intermediaries, which result in transaction fees and delays. With on-chain transactions, these intermediaries are eliminated, reducing costs and speeding up the betting process. This efficiency benefits both operators and players, as funds can be transferred more quickly, and operational overhead is reduced.
Lion Gaming’s on-chain solutions
At Lion Gaming, we are proud to be on the forefront of on-chain betting software’s introduction into iGaming. We offer white label crypto casino and sportsbook solutions with available on-chain wagering to empower operators and players with a superior betting experience engineered for the future.
With Lion Gaming’s solutions, operators can facilitate both casino and sports bets on-chain, ensuring trust, fairness, and efficiency.
On-chain betting software represents a major shift in the iGaming industry. It not only addresses the trust issues that have long plagued iGaming, but also brings unmatched levels of transparency, fairness, and security. Lion Gaming’s on-chain solutions are leading the pack. Our solutions give our operators the ability to offer their players the best gaming experience possible.
If you’re an iGaming operator looking to stay ahead of the curve, or if you’re interested in starting your own platform, contact us today. Let’s embark on a journey towards trust and transparency together, and bring your operation into the future.