Humanity, unlike other creatures, is known for its propensity for advancement throughout history. From the development of the Egyptian pyramids to replacing oil lamps with electricity and to the arrival of the internet, we have always had a knack for innovation. As intriguing as man’s previous creations are, it seems like yet another product of humanity’s ingenuity is upon us.
An Overview of Web 3.0
This new product is called Web 3.0 and promises a more decentralized, trusted, and secure internet for all. Web 3.0, also known as Web 3, is the third generation of the World wide web, where users have access to their own data and are connected through a decentralized network. It is believed that Web 3.0 will be built using AI, machine learning, and Blockchain technology. Before Web 3.0, there were Web 1.0 and Web 2.0. Web 1.0 existed from around 1991 to 2004 and was a non-interactable read-only content similar to a large encyclopedia of information (something like a vast Wikipedia page). A few years later, between 1999 and 2004, Web 2.0 began to gain traction, and the internet became more interactive because of the arrival of web technologies. From 2004 until now, we have operated majorly on Web 2.0 using platforms like Facebook, YouTube, and Others.
However, the game is about to change, and it is believed that Web 3.0 will dismantle the database power of established organizations and give more power to the people. This has brought up many questions like; how this will affect how business is done. What changes will this bring to how we interact on the internet? And many more. For the sake of this article, we will discuss the impact Web 3.0 may have on sports betting. Grab a seat, and join us.
Web 3.0 and the Future of Sports Betting – What to Expect.
The sports betting industry is gaining massive acceptance globally and has become a lucrative market. This can be seen through the industry’s market size, which grew from $96.84 billion in 2022 and promises to hit $104.78 billion in 2023 at a compound annual growth rate (CAGR) of 8.2%, as reported by The Business Research Company. Additionally, countries like the United States of America are passing sports betting legislation, which reflects the growth in online sports betting across the country as shown in the state legislation hub. These developments are pointers to the positive changes taking place in the industry.
However, looking at these changes raises questions about the industry’s future. With the buzz around Web 3.0 and the possibilities it holds for the future, it makes sense to examine how this new technology may affect the sports betting industry in the nearest future. Let’s highlight a few things to understand what a combo of Web 3.0 and the evolving sports betting industry will produce.
Shift in Control
Web 3.0, with its decentralized nature, is expected to shift control in the sports betting industry away from centralized entities and toward the users. Using blockchain technology, sports betting platforms can be built on a decentralized network, allowing for more transparency and reducing the need for third-party intermediaries. This means that users will have more control over their data and can place bets securely without relying on centralized platforms. Additionally, smart contracts can automate the process of placing bets and resolving disputes, further increasing user control.
Transparency in the Sports Betting Industry
The decentralized and blockchain-based architecture of Web 3.0 is expected to increase transparency in the sports betting industry. Blockchain technology allows for a tamper-proof and transparent record of all transactions, which can provide greater transparency in the betting process. This can include a transparent record of odds, payouts, and results, which can give bettors more confidence in the integrity of the betting process.
Encrypted records of transactions shared among participants, and the absence of a third party eliminates also boost this regard. Additionally, using non-fungible tokens (NFTs) in the sports betting industry can increase transparency. NFTs can represent betting items, such as virtual collectibles, digital collectibles, and in-game items. These NFTs can be tracked on the Blockchain, allowing for transparency and verifiability of ownership and authenticity.
Security in Web 3.0 sports betting
In the decentralized web, the use of decentralized apps (dApps) can increase security. dApps can be built on a decentralized network, which means there is no central point of control, making it harder for hackers to target and compromise the system. Users are not required to provide their personal information to dApps to access app-specific features. Instead of your personal information, like credit card details, being stored on a single server, you’ll have a secure personal wallet for your money, guaranteeing your online safety.
Additionally, Blockchain transactions are highly secure due to their encryption and the fact that each record is linked to the previous and subsequent ones on a distributed ledger. This makes it extremely difficult for hackers to alter a single record without changing the entire chain.
Web 3.0 could create new types of bets, such as those based on smart contracts or prediction markets, increasing the variety of betting options available to users. Unlike traditional bookmakers, web 3.0 platforms may provide various ways to place bets. For example, participating in a liquidity pool by staking funds and earning interest may appeal to individuals who like to play it safe. Through smart betting made possible by web 3.0 frameworks, users can choose to be the house, the bettor, or both.
In the context of sports betting and Web 3.0, payments can be made directly between users without the need for a centralized intermediary, such as a bank or payment processor. This can reduce fees and increase security for the bettor and the sportsbook. Also, payouts can be made faster through instant innovative contract settlement, automatically settling bets and distributing winnings.
Potential Shortcomings that May Arise from the Web 3.0
Web 3.0 will come with its limitations and deficiencies, and here are a few.
Web 3.0 is powered by several technologies, including machine learning, semantics data, Blockchain, and Artificial intelligence. This means that some devices available to bettors at the moment may need help to cater to the demands of a decentralized sports betting system. Sports punters may need to upgrade their devices to access and enjoy this system.
Complicated for Non-technical Bettors
The technology is still in its early stages and may need to be more user-friendly and widely adopted than traditional online betting platforms, and this will be a challenge for people who are not tech-inclined. The system and the way it functions may appear complicated to beginners and people already accustomed to the traditional betting industry.
In conclusion, Web 3.0, the decentralized web, represents a shift towards a more decentralized and autonomous internet. This shift is driven by advancements in blockchain technology and the emergence of decentralized applications (dApps). In sports betting, Web 3.0 can revolutionize the industry by providing users with a more transparent, secure, and fair betting experience. Through smart contracts and decentralized oracles, sports betting dApps can offer a more efficient and transparent betting process while giving users more control over their data.
However, it is essential to note that the decentralized web is still in its early stages of development. Many challenges must be addressed before it can fully realize its potential. This includes issues related to scalability, security, and user adoption. Overall, the future of sports betting is likely to be shaped by the continued development of Web 3.0 and the emergence of decentralized applications. While there are still many challenges to be addressed, the potential benefits of a more decentralized and transparent betting ecosystem are significant. It will be interesting to see how the industry evolves in the coming years.