In the complex world of online betting, three main groups exist who must have their needs met in order for the whole ecosystem to function: Regulators, who want compliance; Players, who want safety; and Developers, who want facilities. Currently, online betting applications run on bespoke solutions, with each one having its own silo while competing with other apps in other silos. In order to enter the market as a developer, you need to build your own silo and redo the work others have done already to ensure compliance for regulators and safety for players.
These are huge barriers to entry for a half trillion dollar market that is growing in size every year, but lacking in innovation and solutions that boost adoption for innovators and developers.
But what if a betting protocol existed that allowed for developers to use a standardized set of tools that ensured compliance and safety while offering them the facilities they want?
The regulated fiat betting market is fairly mature, but the regulated crypto-betting blockchain based market is just beginning. Our vision is that the future of betting is going to be 100% on the blockchain and Betprotocol is the first step to accomplish that.
Blockchain gives us many advantages, but chief among them is the ability to tap into a single source of shared truth, and not have to spend time and money replicating other’s checks and work. In short, blockchain allows us to get rid of silos and share the same common ground.
To break into online betting, a company needs to recreate all the work that other companies have already done in the past to ensure compliance: KYC/AML, licensing, and so on. And that’s just from the regulatory side. On the technology side, they also have to recreate their own systems for bets generation, payments, odds generation, event resolution, and dispute arbitration.
It’s a pain in the ass.
But those who manage it, reap massive rewards. That’s why you have a few big brands that dominate the online betting industry and reap most of the profits, even if their technology is ridiculously outdated.
What if there were a way to drastically lower the barrier of entry for online betting firms by leveraging blockchain and smart contracts, so that new entrants could just plug into a protocol that handles all the compliance and technology issues? What if this led to a proliferation of betting apps, powered by crypto, that led to a decentralization of profits while offering the end user more safety and choice?
Introducing BetProtocol: “The Protocol for Betting Apps”.
Just as Shopify made it trivially easy to setup your own e-commerce store and Oxprotocol made possible the existence of Decentralized Exchanges at large scale, BetProtocol will make it trivially easy to set up your own online betting application. The pain points of compliance and backend services are handled by us, allowing developers to focus on their product and customers.
BetProtocol will be a hybrid Network and Protocol built on top of Public Blockchains, IPFS and relayer mechanisms. Our vision is to enable the betting economy of tomorrow, one that is decentralized at its core but observable and regulation-friendly enough to prevent money laundering and underage betting.
BPR: The BetProtocol Token
To align incentives and power the BetProtocol economy, our own unique utility token, BPR, will be minted into existence and sold to the crowd.
BPR has several uses:
a) As a proof of investment in the protocol, firms will be required to acquire and stake a certain amount of BPR tokens inside their betting application to stay open.
b) Periodically, a Platform Fee will be charged to betting applications whereby this balance is reduced. Firms will then have to replenish their supply by acquiring more BPR.
c) Reputation is key in BetProtocol, because it is the foundation of trust. Applications with the highest amount of reputation will be required to stake higher amounts of BPR. The idea is the “skin in the game” model. The more skin the companies have in the game, the less incentive they have to violate people’s trust.
d) Disincentive for fraud: Fraudulent applications will have their BPR investments burned.
e) Governance Voting — Holders will be able to vote on new dApp entries to the ecosystem and protocol updates.
f) Oracle Voting — tokens need to be staked to create a vote in event resolution
g) Dispute Resolution — tokens need to be staked to create a dispute in the network
BetProtocol will also leverage Whitelabel systems to give existing brands and companies a turnkey solution to create their own betting applications or gamified community engagement apps.
With BetProtocol, we envision a future where code-law (Smart-Contracts) can replace multi-million dollar incumbents and entrenched middlemen that define betting rules (and take a lion’s share of the profits). The BetProtocol Network will become the new Community of Crypto-Regulated Betting where brands, developers and users can decide, vote and bet on an ecosystem defined by them, and where the rewards will be more democratically spread.
Interested in learning more?
Visit www.BetProtocol.com and sign up for our mailing list, and join us on Telegram!
Telegram : https://t.me/betprotocol
Rui Teixeira & Justin Wu, BetProtocol Founders