Is Blockchain technology the solution for fantasy sports operators?
Fantasy Sports operators should use bitcoin and other cryptocurrencies to address various problems within the industry
Daily Fantasy Sports is always changing in an ever changing world. So much so that various states in the US are torn between regulations that define fantasy sports contests as legal or not. In addition, the same states are lobbying for different player protection rules and guidelines for fantasy sport contest operators.
What is Fantasy Sports?
Participants of Fantasy Sports contests will draft a player lineup, selecting real life players from real life games. The real performance of players within a game will determine how successful the lineup is compared to other participants in the contest. The participant who’s lineup out performed the all the others is declared the winner and is awarded the prize.
The Fantasy Sports addiction has over 60 million player in North America and is worth over $7 billion dollars annually.
DraftKings and Fanduel are the two largest Fantasy Sports operators currently. Combined, their market is expected to reach about $3 billion by 2020.
Regulations on Fantasy Sport Operators
In the US, the states which have legalized Fantasy Sports play have special rules and guidelines for fantasy sport operators. Such rules and guidelines include age verification, separate bank accounts for holding winnings and another dealing with operation costs, limiting users to only one account, implementing a monthly deposit limit, restrictions on employee participation, fair game play and many many more.
Introducing the Crypto Currency for Fantasy Sports
P2P Crypto Currency for Daily Fantasy Sports
The Problem At Hand
Daily Fantasy Sports operators earn on average of a 10% commission for each contest. Currently, credit card processing is as high as %5 in some cases, causing the profits to be reduced by 50% right off the bat.
Player deposits can be frozen or worse stolen. Combined with the risk of fraudulent deposits and charge-backs a more secure and cost effective solution is needed.
To solve these and other problems there is cyrpto currency. Crypto currency is more secure for both the end user and fantasy sport operators. Transaction costs are drastically lowered. With blockchain technology and an open ledger players can be confident their deposited funds are safe and used only to payout prized contests.
What is bitcoin?
Bitcoin is a digital currency. Fantasy Sports operators could benefit from using a crypto currency within their platform to enhance security for fantasy sport participants to run their contest.
Bitcoin is based on blockchain technology, which is essentially a decentralized banking system, where everyone on the network has a copy of the transaction ledger. This creates a safer environment for fantasy sport players as they don’t need to wait for deposits or withdrawals to occur. With blockchain technology , transactions are instant and the transaction fees are very minimal compared to standard payment gateways.
A recent study performed by the Cambridge Center for Alternative Finance has recorded the number of active crypto currency wallets across the world at 11.5 million
What is blockchain technology?
A blockchain, originally block chain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a time-stamp and transaction data. By design, blockchains are inherently resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way”.
For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Blockchains are secure by design and are an example of a distributed computing system with high Byzantine fault tolerance. Decentralized consensus has therefore been achieved with a blockchain. This makes blockchains potentially suitable for the recording of events, medical records, and other records management activities, such as identity management, transaction processing, documenting provenance, food traceability or voting.
The first blockchain was conceptualized in 2008 by an anonymous person or group known as Satoshi Nakamoto and implemented in 2009 as a core component of bitcoin where it serves as the public ledger for all transactions. The invention of the blockchain for bitcoin made it the first digital currency to solve the double spending problem without the need of a trusted authority or central server. The bitcoin design has been the inspiration for other applications.
Takeaways from Blockchain Technology
1) Decentralization, this means no one is in complete control over the entire system or network. All nodes on the network are all responsible for keeping track of the transactions
2) Trust. Since the ledger is available to everyone on the network, the trust factor is very high for users of the crypto currency. This is what gives currency part of its value, the confidence of its handlers.
3) Security. Every single transaction in a blockchain is verified by all members of the network. So modify a transaction, a hacker would need over 51% control of all the nodes on the network and modify ever single block of the blockchain.
Is anyone doing this now?
There are a few fantasy sport operators supporting bitcoin currently. There are also some fantasy sport operators who have created their own crypto currency. However, one fantasy sport operator in particular has given way to accept any crypto currency which levels the playing field for players holding different cyrpto currencies. FanLucci.com is currently the only Fantasy sport operator which supports multiple crypto currencies
How does it work?
Fantasy Sports players can transfer their crypto coins or crypto currency from any of the supported currencies and their system will convert them into something they call Lucci coins. Lucci coins are just the currency used on the FanLucci.com website.
Lucci coins are not a crypto currency. It’s like going to a casino and exchanging your cash for chips to play with.
Fantasy Sports players play with the chips or Lucci in this case, then when players want to cash out, they exchange the chips or Lucci back into any of the crypto currencies supported by the platform.
The advantages are that Fantasy Sports players can play using any of the supported currencies into Lucci which levels the playing field between currencies.
Transactions are secure and there is no chance of fraud.
Transaction fees are very low.
FanLucci.com has more sports than any other fantasy sport site
FanLucci.com has more game types than any oter fantasy sports site.
Fanlucci.com supports daily, weekly, monthly and season long contests
FanLucci.com is the first fantasy sports site to support multiple crypto currencies.
You can register at FanLucci.com using this link and start playing Fantasy Sports for Crypto Currency here.