Blockchain technology is being widely adopted by the business and management sectors in recent years. The decentralized nature of blockchain offers numerous benefits such as improved security, peer-to-peer transactions, and much lower transaction fees. Such a huge business sector as the gambling industry couldn’t stay away. The rapid adoption of emerging technologies is a major factor driving growth in the online betting platforms. Despite initial scepticism received from the global community, the use of cryptocurrency in online gambling, for example gambling with Bitcoin or Ethereum, has gained significant popularity over the course of years. Following that, the integration of decentralized finance (DeFi) in online sports gambling has also seen quick acceptance among players. More and more wagerers choose gambling with Tether and other DeFi coins when placing their sports bets, rather than using their regular currency. As the industry continues to evolve, developers are constantly introducing new and unique products to enhance the betting experience. In this article we want to make an overview of the current role of DeFi in online gambling and provide you with all of the pros and cons of using DeFi coins when wagering on sports.

What does DeFi mean

Let’s start with a short explanation of what DeFi coins are. Firstly,  you should understand what differentiates DeFi and crypto coins. The main difference between DeFi coins and other cryptocurrencies is their purpose and use case. DeFi, or decentralized finance, refers to a set of financial applications built on top of blockchain technology that aim to provide financial services similar to the ones typically offered by traditional financial institutions. DeFi coins, such as MakerDAO, Compound, Aave, and USDT are typically used to access these decentralized financial services. Other cryptocurrencies, such as Bitcoin and Ethereum, are primarily used as a store of value or a medium of exchange. DeFi accounts are non-regulated and offer quick and anonymous setup, with the added benefit of full control over funds. Users can engage in traditional banking activities such as saving, investing, and borrowing. 

What are smart contracts and how do they relate to DeFi

Smart contracts are self-executing agreements that do not require the intervention of a central authority or intermediaries to facilitate. They eliminate the need for paperwork and intermediaries that traditional contracts, transactions, and exchanges require, while providing transparency and visibility on the blockchain. Smart contracts operate by creating a digital agreement where parties input predefined conditions and provisions that must be fulfilled for the contract to execute, eliminating the need for a middleman. DeFi system utilizes smart contracts as a key component of its infrastructure, providing customers with liable, transparent, and automated transactions.

How can the use of DeFi change the sports betting industry

The integration of blockchain technology in the wagering industry ensures transparency and promotes a safe and trustworthy environment. Decentralization allows for fair profit sharing for all parties involved and dethrones operators who prioritize their own gain over fairness. The most significant impact of DeFi on the sports wagering industry will be the enhancement of the user experience and the introduction of new innovations. As the area of decentralized finance continues to evolve, developers are finding new ways to incorporate additional benefits for players.

The advantage of using DeFi coin over crypto for sports gambling

Despite all of the positive aspects, such as quick transparent transactions, lack of government control and anonymity, using crypto currencies such as Bitcoin or Etherum is hard to call the best financial instrument when it comes to gambling. This comes from the high volatility of such coins. When topping up your balance, or withdrawing winnings, there is always the possibility that the coins will plummet in value, and a player will suffer financial losses connected to it. On the other hand, the worth of such coins might suddenly increase, bringing you more money for your investment. But many bettors don’t want to add even more unnecessary risk when placing bets, and are looking for a secure way to earn profits from their digital coin operations. Unlike crypto coins, DeFi stablecoins, such as Tether which was the first to be backed by the US dollar, provide this opportunity. USDT gambling can help gamblers to keep their finances stable and avoid any unexpected losses.

What is the best platform to bet on sports with any DeFi coin

If you are looking for a relatable peer-to-peer betting platform, that would allow you to place your bets using DeFi and would keep your identity anonymous, Dexsport is your way to go. Dexsport is a DeFi betting platform that offers peer-to-peer betting. It allows users to act as both bettors and bookmakers in a fair and open system that operates on a trustful and immutable blockchain protocol. Unlike other online wagering platforms, Dexsport does not hold custody of users' funds, instead, the funds are fully controlled by smart contracts. The platform has its own native token called DESU, which is a utility token used to govern the protocol. Aside from that, this innovative betting tool offers a wide range of DeFi coins for sports bettors to use. Dexsport’s customers can try gambling with Tether, or choose from more than a dozen kinds of crypto coins available on the platform.

Conclusion

The integration of decentralized finance in online sports betting has seen quick acceptance among wagerers. As the industry continues to evolve, DeFi offers a safe, transparent, and reliable environment for betting transactions. The use of DeFi coins over traditional cryptocurrencies offers a more stable option for players, reducing the risk of volatility and ensuring a better user experience. As the area of DeFi continues to evolve, it will continue to play a significant role in the online sports betting industry.