Recently we announced our cooperation with SiGMA.
The response to this news brought up some questions about the details of our sports betting solution. As said, we will launch it on our Scorum platform and allow other developers to build customized betting solutions on top of our blockchain.
The Summit of iGaming in Malta (SiGMA) is the largest event that brings together the titans of the online gambling, gaming, and sports betting industry once a year for a warm week in the Mediterranean every fall. With steady growth continuing across all aspects of this industry, it’s only natural for the progressive players in the gaming world to embrace the utility that blockchain tech can offer.
SiGMA acknowledged the quality betting solution Scorum provides and expressed their willingness to support us and to help our team connect with third party developers and other interested parties.
What SiGMA sees in Scorum’s betting solution
Scorum is keen to offer it’s commission-free betting exchange for integration by other developers and interested established fiat online bookmakers. For Scorum this will be a good opportunity to increase the utility of the SCR token and underpin the mass adoption of cryptocurrency among sports fans and bettors around the world.
While much has been said about the transaction speeds of major cryptocurrencies not being fast enough to sustain a high volume of transactions, Scorum’s Graphene-based blockchain will be capable of sustaining traffic over 3000 transactions per second. This makes it uniquely suited for the international sports betting industry. The high-volume performance of the Graphene framework has already been proven in several projects and there is no fear of cryptokitties clogging the network!
Not only that, the open and transparent nature of distributed digital ledgers (blockchains) means that all bets, payments, and odds will be recorded immediately and available for all to see. By using a Delegated Proof of Stake consensus, there will be no centralized authority to trust when it comes to fair payouts in the exchange. Bettors can be sure that the wagers they place will pay out at the correct odds.
Scorum’s betting exchange offers zero transaction or commission fees for eager bettors around the world.
In the graph below, we compare how Scorum’s commission-free solution (0% margin) increases profits for bettors as compared to the global sports betting platforms Pinnacle (2% margin) and Ladbrokes (6% margin). To show it simply, we’ll use an example where one of two outcomes is expected (total match goals in English Premier League). For ease of perception, take the football total 2.5 (event with two outcomes) and assume the same probability over/under. With zero margin for both outcomes, we get the coefficient 2.0. With a margin of 2% — 1.961, with a margin of 6% — 1.887. The distance effect of such a reduction in the ratio is enormous. Shown is the outcome of 1000 bets with 51% correctly predicted sorted randomly for pluses and minuses.
As you can see, bettors facing 6% margins with Ladbrokes will end up down over 37 units over 1000 bets, even if they predicted correctly in the majority of cases. If 10 USD were placed in each wager, that would be a loss of over 370 USD. Bettors at Pinnacle fare better but only end up drawing even, an unfortunately boring outcome after so many bets.
With Scorum’s 0% margins, the gains are clear as the bettor is up 20 units after 1000 bets — a return of 200 USD if 10 was placed on each bet. Without margins eating into their winnings, avid, occasional, and new bettors can test their analytical betting skills and take home all their earnings.
Coupled with the in-depth sports statistic center and the latest crowdsourced sports coverage in the blogging platform, Scorum gives its users all the tools to place smart bets in real time.