Gambling is an extremely old and popular practice. Sports betting for one dates back to ancient Rome, having evolved from bets made on the stairs of the Colosseum to worldwide online gambling which is now a multi-billion dollar industry that connects millions of people around the globe. Regardless of how much sports betting has evolved since then, there are still crucial problems that need to be solved such as the inherent lack of security, privacy, and transparency found in traditional online gambling platforms and the restrictive regulations applied by many governments.
As technology evolves, these problems can be dealt with greater efficiency. This is the case with blockchain technology which has the potential to disrupt the gambling industry, making it safe, fair, transparent and globally accessible. Extreme Sportsbook is a decentralized gambling platform that plans to disrupt the sports betting industry, leveraging blockchain technology to provide all of the aforementioned advantages and more.
The Blockchain Solution
Extreme Sportsbook will use a new Proof of Stake (PoS) blockchain network to provide its decentralized sports betting services. From the user’s perspective, the sports betting platform will be accessible through the Extreme Sportsbook wallet, an app that can be easily downloaded and installed.
The wallet interface will not only be fast and intuitive, it will also add an extra layer of security to the platform when compared to traditional gambling websites where users’ funds are protected by a username and password combination. With Extreme Sportsbook, however, this system is replaced by the same public/private key model used in Bitcoin and other cryptocurrencies, where the cryptographic private key is needed in order to access users’ funds.
Once installed, the wallet will need to be loaded with XSB, the native value token in the Extreme Sportsbook system. Once the deposit has been confirmed, users can start gambling through the decentralized “parimutuel” betting process. Under this system, the users bet against each other so there is no house take. The odds are determined once the period for wagering has been closed and then calculated by sharing the pool among all the winners. The XSB cryptocurrency allows betting to take place anonymously and globally with no restrictions.
Once the wagers are initially placed, the XSB tokens are publicly burnt given that there is no “house” or operator taking the payments and distributing payouts. Instead, these are handled by the blockchain itself in the form of block rewards. In the case an event is canceled, the wagers are returned to their respective XSB wallets. This autonomous system eliminates the need for house operators, resulting in higher payouts and outcome accuracy.
PoS and Masternodes
In order to secure its blockchain and provide users with a decentralized betting system, the Extreme Sportsbook platform leverages both a Proof of Stake consensus mechanism and a second layer network of Master Nodes. PoS nodes can stake their XSB holdings to receive 40% of block rewards. This can be done by any user that holds XSB and leaves his wallet running.
Master Nodes acts as service providers who process private and/or instant transactions in exchange for a fee. Users who want to host Master Nodes must have at least 10,000 XSB. For their services, Master Nodes are rewarded with 40% of the block reward and with 0.1% of all wagers placed.
The remaining 20% of block rewards are reserved for presale VIPs (10%) and the development team (10%). As a community-driven project, Extreme Sportsbook allows Master Node operators to vote on how the development budget is used.
XSB and token sale
Right about now, you may be wondering how you can start betting on your favorite sport without having to worry about all the problems that Extreme Sportsbook solves. At the time, the project is still in its development stage. In order to fund the development and marketing of the platform and to distribute tokens in an open and transparent manner, Extreme Sportsbook will host a token sale.
The upcoming fundraising campaign will see 18 million XSB distributed for a $0.25 price during the VIP presale and for $0.35 during the main sale. To learn more about Extreme Sportsbook and its upcoming token sale, visit the official website and read the whitepaper.