The global sports betting market has been growing over the last few years and is now estimated to be worth up to $3 trillion as digital platforms manage to reach an increasing number of gamblers over time.
Most platforms, however, take advantage of their users to a certain extent, limiting their profits, enforcing strict regulations that may often compromise their security, and often block payments as much as they can so they can benefit from users’ funds for longer.
The solution to these problems is a community-owned sports betting platform, made possible through the use of blockchain technology. One such platform is SportX, which has its smart contracts on top of the Ethereum and Polygon networks.
SportX uses the power of decentralized finance to give bettors a better platform
SportX is essentially a smart contract protocol built on top of Ethereum and Polygon that provides bettors with a better platform that is owned, operated, and governed by the community.
This is possible through the use of blockchain technology and community governance. Often, traditional sports betting platforms enforce know-your-customer (KYC) checks but fail to properly safeguard users’ information, which could lead to privacy nightmares for them.
Moreover, they block payouts to winners in a bid to either get them to give up or take advantage of their funds in their accounts for a while longer before paying them out. Betting odds may also often be skewed in their favor, making the whole sports betting experience worse for many players.
Through blockchain technology, users can ensure the platform is fair, pays out on time, and does not ask users for confidential information, as they are able to connect through the use of a Web 3-compatible wallet such as MetaMask.
SportX avoids the risks of vulnerable and manipulable in-house servers while improving security by using blockchain spreads across thousands of nodes worldwide. Wagers are held in an escrow by smart contracts until a winner is determined, so no one can access the funds in the meantime.
When a winner is indeed determined, the payout is processed. Thanks to the smart contracts, there are no delays, no additional requirements to getting paid, and no partial payments. The funds are sent directly to a user’s wallet.
The platform was launched in March 2019 by a passionate team of sports bettors with deep expertise in technology, trading, and security. To make the platform more enticing and help it compete with centralized betting platforms, it’s running a number of tournaments this summer.
SportX has already announced 13 different betting tournaments in its schedule, and noted that thanks to the delays caused by a COVID-shortened sports season last year, this summer is going to be filled with events it will be aggressively adding to tournaments.
The tournaments have different conditions and dates, with often bets placed on a specific sports event counting for the participants. Results are often based on the profit generated from betting on these events.
Some of SportX’s events stand out, including the $1,000 F1 Challenge (running from June 25 to June 27), in which only bets on Formula 1 count, and the first place prize can get $300 for accurately calling the winners.
The $4,000 Euro Knockout (from June 26 to June 29), on the other hand, has 50% of its prize paid in SX tokens and includes specials for most bets, biggest loser, and daily dealer. Only bets on the Euro 2020 count for the event.
To participate in the tournament, users simply need a Web 3.0 compatible wallet, some Ethereum to process transactions, and time to choose their bets wisely. All bets can be made using the SportX.bet platform.
The SportX (SX) token
For the SportX community to own the platform, the team behind it has created the SportX token (SX). This governance token will enable shared community ownership and decentralized governance to guide the platform’s future.
SX is an ERC-20 token that exists on the Ethereum and Polygon networks and has three main use cases:
- Governance – SX token holders control all parameters of SportX’s smart contracts through its governance interface.
- Staking – To participate in the platform’s governance, token holders must first stake their tokens by locking them up. While this costs them immediate liquidity, they earn staking rewards. Note only Polygon-converted tokens can be staked.
- Fee Discount – Token holders actively staking SX can earn a reduction on exchange fees they pay using the platform.
The SX token has its supply capped at 1 billion, with 55% being allocated to community members, 22.86% to the development team with a 4-year vesting period, 17.14% to early backers with a 4-year vesting period, and 5% to strategic partners and marketing initiatives. Only 2% of the tokens were created at inception.
Token holders also control the platform’s community treasury and, therefore, decide how to distribute the 530 million SX tokens allocated to the community. Tokens from the treasury vest to the community on a monthly basis.
You can find out more about SportX via its documentation page. If you would like to use the platform, you can already do so using the SportX.bet platform.