Key Takeaways:
- Discover why the scope for sports betting protocols in the Solana network has increased in recent years.
- See how Solana-based sports betting applications could be a feasible business model in the current market conditions.
- Explore the facets that could make these platforms appealing to new-generation digital sports betting enthusiasts.
The Web3 space has expanded far and wide ever since its inception a long time ago. Various Web2 platform models have ventured into the Web3 space in an effort to bring user-centric experiences and proper incentives. Online sports betting is one such domain that entered the decentralized markets, citing the same stream of reasons. While the domain shone in its own might, it has not become as widespread as people might expect it to be. But, experts predict that a Solana-based sports betting protocol could be a game-changer in this aspect, mainly due to the fact that the network has become one of the most preferred alternatives to Ethereum. This blog will specifically focus on these Solana-native protocols from a business point of view.
The Hype Surrounding Solana-based Sports Betting Protocol Projects
While the blockchain-based sports betting market has been relatively underrated, Solana-based sports betting protocol projects have garnered widespread attention in recent years. Events such as BetDEX’s successful funding round, which included contributions from prominent crypto entities, have put these platforms in the spotlight. Looking past that, these platforms provide a plethora of advantages over sports betting platforms on other blockchains, which is a prominent factor.
- With a bustling ecosystem, a recognized native coin, powerful infrastructure, and global recognition, Solana is the perfect place for active applications like sports betting protocols. Experts predict the blockchain will become as valuable as Ethereum during the next bull run, which is anticipated to occur after the landmark Bitcoin Halving event.
- As more sports betting enthusiasts enter the blockchain space in hopes of better playing experiences and proper returns for wagers, efficiency-focused networks like Solana could be the ideal hub for platforms. By building on scalable and flexible blockchains, Web3 sports betting projects can gain immense satisfaction and yields.
- Solana-based sports betting protocol projects like BetDEX and Aver have been showing the path forward for aspiring entrepreneurs by providing user-centric solutions while taking enough cuts as a business. Such an approach has been mastered by the Web3 daily fantasy sports app HotStreaks, which gained funding from leading crypto-native VC firms like Polychain.
Wanting to Build and Launch a Solana-native Sports Betting Application?
How Decentralized Sports Betting Protocols Address Pressing Concerns
The sports betting industry has a market size exceeding $235 billion, with further growth expected in the coming years. However, the existing market is riddled with flaws, resulting in unsatisfactory user experiences. The decentralized version of the platform, though, is in its early stages, with several platforms aiming to become the revelation the market needs. Despite their infancy, decentralized sports betting protocols address the pressing concerns of the market.
- By taking deposits, wagers, and other rewards on the blockchain, Web3 sports betting applications enhance the levels of trust and transparency between businesses and players. Players can truly ensure that their bets are placed in the intended spots without any manipulation or foul play.
- The use of blockchain technology also ensures businesses can easily monitor price pools and player entries in various sports betting contests, ensuring efficient operations irrespective of the number of participants. Doing so also meant platforms could attract players more easily than they could otherwise, as betting is considered to be a gray area when it comes to general morals.
- By tapping into efficient blockchain infrastructure (such as Solana), players can enjoy their experiences while spending minimal costs to pay for transactions. This could result in businesses reducing fees as operations become cheaper. This can also provide sufficient security for user and business data that cannot be tampered with after storing on the blockchain.
Main Facets of a Solana-native Sports Betting Protocol
With the hype surrounding Solana-based sports betting protocol ventures elevating to new heights, it is essential to look at the main facets that rule these platforms. Knowing their fundamental features is necessary for businesses to ensure their users get the desired experience from these platforms, forming the foundation for success.
- Betting Markets: Markets in Solana-native sports betting dApps are basically smart contracts representing various events. Each of these on-chain accounts contain information on the underlying events as well as market specifications.
- Market Resolution: Market resolution in sports betting dApps are initially governed by in-built code in markets that will query data from multiple independent API sources. After the event gets over, decentralized oracles will come into action and fetch results from these sources. When both results are in consensus, a final result is reached.
- Market Funds: Decentralized sports betting apps use a fully-collateralized mechanism to eliminate counterparty risks. Each betting market will be backed by a vault that will store players’ bets through a smart contract that cannot be accessed by any individual or entity. Funds are released to winners only after the final results are announced.
- Order Books: Limit order books on these applications represent individual outcomes of a market. These solutions match Bid (buy) and Ask (sell) orders that are stored on the blockchain. Trades are executed when a Buy order comes at a price greater than the lowest-priced Sell order or vice-versa.
Conclusion
Therefore, we have seen the intricacies and basic elements involved in Solana-based sports betting protocol projects. With several ventures garnering popular buzz generated by financial support from leading Web3 entities, this could be the time for entrepreneurs to explore the space a bit more. Also, as Solana races toward attaining a high preference among Web3-enabled blockchain networks, becoming part of the bustling ecosystem could be a blessing for businesses in the long run. If you are looking to build a sports betting dApp on Solana, now could be the perfect instant to start, and our experienced team at Blockchain App Factory can develop and deploy the application per your requirements. Connect with one of our professionals now to plan your new sports-based dApp project!
