How Blockchain Tech Can Change Fantasy Sports Market
Date Posted: December 1, 2017
Daily Fantasy Sports (DFS) is a major market in the US and is currently growing in other parts of the globe. But, there are many issues with the DFS market that still persist. A fantasy sports market on Blockchain can resolve most of these problems.
The use of Blockchain technology allows for a secure market. It also allows for transparency which helps operators build trust with its players. Popular fantasy sports sites like FanDuel and DraftKings are some of the companies that may benefit from using the Blockchain technology.
State of Daily Fantasy Sports
Daily fantasy sports (DFS) are a unique iGaming market from the sportsbook. Players join or create a virtual league which competes with other players. The concept puts daily fantasy sports in the Skill Games market—like Bitcoin esports—which attracts millennial players. It also gives sports fans a chance to draft their dream team and win real money from it.
With the rise of the DFS industry, there are several problems that continue to affect the market.
Players follow a specific rule that the DFS platform has set to determine the winners. Scorings of the virtual team and how well they perform in a match go through a system that is running in the background which no players can see. Players trust that the platform offers a fair system that is not manipulated in any way by the operator or anyone else. This can be a problem to some since there are no means to determine if the system is fair or not.
The means for an operator to protect every player’s account from hackers or other cyber criminals is a constant issue. Players want assurances from operators that security is the last thing they should worry about as they draft their virtual teams.
Players are wary of operators who make it inconvenient to obtain any winnings. Certain platforms might have a difficult condition to meet in order to withdraw a player’s earning.
Use of Blockchain technology
The technology behind Bitcoin and another cryptocurrency—which is already used in Bitcoin sports betting sites today—can also be applied to DFS platforms. One of the Blockchains most often used by iGaming platforms is one that utilizes smart contracts.
Smart contract is a code in the Blockchain which is executed automatically when it certain events trigger it. These events include hitting the strike price or passing an expiry date.
Every code on the Blockchain is public. Anyone can view and analyze it. This ensures players that the DFS platform is using a system that provides fair play.
It is virtually impossible for anyone to breach the Blockchain and change any of the codes. Blockchain technology is currently unhackable with today’s technology.
Blockchain allows for an automated platform where there is no middleman needed to process the payments. This ensures players that they do not have to worry about any hidden fees or have to go through a series of hurdles in order to receive their monetary prize.