The prediction market is huge and well established, it has also experienced several stages of disruption. Even disruptions such as online betting which appear to be very trivial nowadays happened just less than three decades ago. This speaks volumes about how quickly the industry is evolving and how the inherent players are motivating the design of better approaches within the ecosystem, thanks to emerging technologies.
Considering how relatively fast these changes occur, existing systems are already revealing a lot of cracks with better, no-nonsense solutions arising.
Existing Limitations
In the current systems, traditional sportsbooks are centralized authorities. Users must deposit money while earning no interest and tying up funds for long periods of time. Although wagers get graded nearly instantly (so users can keep betting), cashouts can take days or even weeks to process. In addition, if the sportsbook collapses and defaults, there is no recourse for users to reclaim their money. Also, despite the fact that Blockchain prediction markets solve the issue of trust, liquidity remains a major issue. Prediction markets like Gnosis and Augur may take up to a week to grade wagers and resolve contracts. Money tied up in a contract can’t be deployed, hurting users’ bankroll growth.
In these centralized systems, setting up accounts at multiple sportsbooks to find the best lines is a smart practice. However, the process of scanning various sportsbooks to find the best line is time-consuming. This process, combined with the liquidity issues discussed above, leads bettors to spend time doing monotonous, inefficient work, with a fraction of their working capital available. And also, because the existing systems consist of fragmented sports analytics, Sportsbooks, betting syndicates, sports teams, and other entities wall off their internal analytics departments and don’t share information with each other. Different analytics groups compete independently toward the same goal, instead of cooperating. In addition to the below market rate salaries that sports analytics jobs generally offer, there is no community where experts and enthusiasts can participate and be rewarded for their contributions.
Because the present system allows editing or manipulation of data, sports betting “experts” aren’t held accountable for their predictions. Experts can lie about their track records and claim they bet at numbers that never existed. Being a successful sports betting tout is more an exercise in marketing than in accurately predicting the results of events. In addition to issues with sportsbooks and prediction markets, there are security and design challenges in the blockchain space in general. Potential users are intimidated by the onboarding flow and the challenges of keeping their information safe and secure.
BlitzPredict: Solving Persistent Problems
As an aggregator of sportsbooks and prediction markets, the BlitzPredict platform constantly refreshes the odds like a stock market ticker. This ensures that users will always get the latest odds available for a given bet. The platform streamlines the process to make prediction markets as simple to navigate as traditional sportsbooks and provides a suite of smart contract tools for users to better interact with sportsbooks and prediction markets. This will allow users to set up smart contracts to execute when specified criteria are met. The goal is to bring the power of an advanced betting syndicate’s tools to individual users.
In order to solve the liquidity problems that exist, as mentioned above, BlitzPredict is implementing the Bancor Protocol. This will also offer low rates for the users and they will be able to instantly exchange tokens without needing to use an exchange or find a buyer. The platform’s aggregator and liquidity reserve will ensure that users always get the best odds and receive guaranteed instant payouts – no more waiting days or even weeks for withdrawals to hit.
The decentralized nature of Blockchain technology makes it easy to appropriately implement effective incentivization procedures. BlitzPredict rides on this property to incentivize sports analytics experts who contribute to the platform, and also work with them to create powerful predictive models. The models will be tested publicly and predictions must be made using actual odds available in the market at that time. Experts must stake BPZ to support their picks and models. Over time, the most successful models will receive the most support from the community.
Change is inevitable
The prediction market is defined by its dynamism, and that is the essence of the industry. Without a constantly changing market that is catalyzed both by underlying events and market liquidity, there will be no existence of opportunities. Therefore, the blood that gives life to the industry lies in the continuous presence of changing events.
Any ecosystem that is dominated by variances will continue to experience improvements as scientifically, the dynamism that is influenced by human elements must instigate some level of competition. Hence, competitive environments automatically engineers innovations and protracted innovation eventually lead to disruption.
BlitzPredict is introducing a prototypical and suitable platform it hopes it will further enhance the predictive market simply implies the direction of the industry’s next wave. Hence, the robustness and liquidity that the platform offers will only go forward to enhance a more improved and compliant ecosystem.