The Los Angeles Rams (LA Rams) are Super Bowl Champions, and the rapper and pop artist Drake placed a large crypto wager. Being one of the biggest music stars globally, Drake stated on Instagram that he had bet up to $1.25 million in bitcoin on LA Rams. Odell Beckham Jr.'s performance was the subject of two further bets, totaling 600,000 Canadian dollars, which he placed on Beckham's performance. As a result of his chances of succeeding, Drake now owns more Bitcoin than before.
Drake now has at least $1 million more in crypto. Numerous celebrities continue to display their support by placing bets using crypto.Let's explore the underlying tech powering these betting apps –Oracles.
From a more technical perspective, the real benefit from this will be the networks that provide the real-time data that allow bettors to interact with the trusted data to place their wagers and receive their payout. This high-quality data information distributed into sports betting apps is vital to their success, and Blockchain Oracles are the force that provides the data. According to Grand View Research, the global sports betting market is expected to grow at an annual growth rate of 10.1% from 2021 to 2028 to reach USD 140.26 billion by 2028. Sports betting is one of the industries set to benefit from blockchain technology, and Oracles are making things a lot easier.
Here’s how: Real-time data updates, like scores and players statistics, displayed on sports betting applications could be receiving support from blockchain technology. Before going into details about how blockchain is helping sports betting dApp’s (decentralized applications) let’s give some background on dApps and how Blockchain Oracles work together to activate bets.
A decentralized application (dApp) is an application that can operate autonomously, typically through the use of unique lines of code called –smart contracts. These contracts run on a decentralized computing blockchain system. These dApps enable users to engage in transactions directly instead of relying on a central authority.
In Drake's case, once a smart contract was finalized, or when the Super Bowl match ended, the contract dispersed earnings into Drakes Wallet.Blockchain projects accomplish data truth and trust by utilizing smart contracts to execute transactions quickly. The code used in smart contracts automatically executes when the terms and conditions of the contract are reached. The blockchain has to pull in data from an external source,unfortunately, this puts it into a significant problem because blockchains can't pull external data. This problem has been known to many as the Oracle problem, and Oracles like Algoracle help solve the problem.
Algoracle is the first decentralized Oracle to be placed onto the Algorand blockchain. Algoracle provides a fully functional Decentralized Oracle Network, connecting smart contracts with access to external data feeds and off-chain computations.
There are a couple of use cases with Oracles, but we will focus on what we will call “Drake’s use cases,” which would be result aggregation and bet confirmation.
The biggest thing that a sports betting app provides is the results which are the basis for payouts, winnings, and everything else regarding sports betting—oracles like Algoracle store and aggregate data onto the blockchain in real-time. For example, Drake's other two bets regarding Odell Beckham Jr.’s performance that Beckham would rack up over 62.5 receiving yards and score at least one touchdown came from the data distributed to the app by an Oracle. Oracle uses its node operators to provide a simple method for verifying the data from various sports event sources and outlets. This data provided could also assist in helping consumers study past events and scores.
Numerous errors can occur when confirming the consumer's bets in dealing with bet confirmations. Specific databases could shut down or be temporarily altered or disconnected due to common internet failures. Utilizing a Blockchain Oracle like the Algorand blockchain can provide bet confirmations and accuracy for all bets before and during sports events. This allows for Drake’s bets to be confirmed and remain unchanged.
How Oracles distribute accuracy
When it comes to providing accurate real-time data, Oracles are essential components of the blockchain ecosystem, enabling smart contracts to function in a novel way. An Oracle on a blockchain is not the source of data but rather a layer that queries, checks, and authenticates other data sources and sends that information to the rest of the chain. Information, such as sports scores, is only an example of Oracle data. The data that an Oracle presents must be secure and have total accuracy. The Blockchain could use two types of Oracle systems, Centralized and Decentralized.
Decentralized oracles have multiple players on the team. The decentralized oracle team of real-time data providers can provide a much faster output than its opponent because it doesn’t rely on a single source of truth, allowing multiple external sources to provide authentic information to smart contracts, thus creating a source of trustlessness.
The strategy that Decentralized Oracles uses is the ShellingCoin protocol, where all these independent sources report the data without coordinating with one another. The issue with this system is that it can become very vulnerable to various points between parties, signaling, and even providing corrupted data.
In-house bounty hunters must consistently watch these systems to catch the infectious data input. The independent data operators could also be subject to consistent attacks from various sources, making them very insecure. Decentralized Oracles are typically embraced more by business networks because they can run multiple systems at different times, which gives the business entity more data flow and output strength. On the flip-side, they require more extensive infrastructure and maintenance investment.
This Oracle is a one-person team. This single entity is the only source that provides the real-time data from an external source and delivers the data to a smart contract operating with a set of security features. Centralized Oracles are dominated by a single entity and are the only provider of information for smart contracts. This system could be compared to the current legacy banking system, where just one central bank is responsible for everything. If something goes wrong within its design, the whole system could have been tampered with, and the projected information would be considered malicious, corrupted, and untrustworthy. This could ruin a betting app's entire infrastructure resulting in a single point of failure and easy access to attack.
The significant benefit of a centralized oracle is that the setup is simple and requires less maintenance. When the Centralized Oracle functions correctly, it could provide the ultimate secured source of trust because it’s only one entity that provides the untampered data information. Embracing the one entity approach makes decentralized oracles slow but highly secure.
No Oracles, No Bet
Regardless of which one is utilized, all betting and gambling depend on oracles. Stemming from dice rolls to soccer games, if you can place a bet on it, you will always need to receive the outcome of that situation. Seeing and knowing the authentic and accurate result of the event allows a betting consumer to receive their winnings. In this field, there are no natural dominant Blockchain Oracle ecosystems. In the gambling industry, the Blockchain Oracles must always feed 100% accurate and reliable results into the contract.
Other than updating scores and final results, some betting dApps use Oracles to gather information to make a consensus about the outcome of future games by using the data from past events. All these promising solutions for sports betting are being created by the collaboration of blockchain and Oracles working side by side. Some of the most popular Ethereum dApps deal with gambling and betting, and the amount grows. Similar to how Ethereum built its developer community, App developers embrace the Algorand blockchain because of its low network costs, quick transaction times, and security, especially compared to Ethereum, its biggest competitor, which has high transaction fees and slow transaction speeds. Algorand has become a favorite amongst government and institutional applications. That same appeal will spill over into developers creating sports betting dApps built on the Algorand blockchain.
Once an dApp or a multitude of gambling or sports betting dApp’s start to launch, Algoracle, the first decentralized Oracle network on the Algorand blockchain, will be there to feed and provide real-time data so that betting apps can become reliable sources for events. Algoracle plans to be selected as one of the core methods through which dApps on Algorand will further decentralize their operations to utilize accurate, up-to-date real-time data.
As more and more celebrities like Drake use bitcoin to place bets, and as the valid blockchain and Oracle revolution begin, Algoracle will be the leader in space with a focus on providing accurate data, so your bets are effectively placed and distributed. For more information on Algoracle, please visit the website or follow us on Twitter.
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