The BETR model
Anyone can lay a bet using BETR’s unique peer-to-peer technology. Sportsbooks and exchanges can integrate the logic into their backend using the API and individual users can lay prices using Layer UI provided by BETR.
The BETR nodes use Ethereum smart contracts to store the layed bets to Ethereum blockchain. The contracts will contain the information of the bet offer including layers’ liability data and the bet settlement information.
Fundamentally, the intention is to provide a global betting liquidity pool. Each bet offer is grouped by market and event and listed in a searchable directory. Bettors wishing to place a bet can then search the directory and locate the bet they want.
While parties may remain anonymous it is intended that this system can also be integrated with existing sportsbooks or exchanges. In this scenario placing a BETR bet may require an account at the counterparty – bets that are offered may be flagged as requiring an account and authentication.
The process of registration and authentication would also imply that those bets would not be pooled with others. BETR intends to introduce a distributed authentication mechanism to facilitate the offering of bets by entities that require player accounts.
Escrow and settlement
When a BETR transaction is placed, an amount is agreed between the bettor and the layer and then funds from either side are escrowed through a smart contract on the blockchain until the underlying event has been resulted, at which point the bet is settled in favour of the winner. Placing a bet entails two important functions. The first is to hold the funds from the time that a bet is made until it is settled. The second is settlement in favour of the winner.
BETR smart contracts cater for a number of different resulting systems:
- Settlement is at the discretion of the layer
- Consensus settlement, in the same way that the blockchain is kept inherently honest by all parties agreeing
- 3rd party settlement using a service which will provide resulting and arbitration
The BBN is a downloadable application which is installed on the user’s device and incorporates an Ethereum wallet. It is similar to a blockchain application in so far as it operates without central servers and the nodes communicate with one another to maintain the state of the database. BBN does not need to store data indefinitely, and that is one aspect that sets it apart from standard blockchain networks where every node (or miner) stores a complete copy of the transaction ledger.
By creating the BBN to meet the precise technical requirements of the bet creators, the bettors and API clients, the application will be fast and will have no 3rd party running costs. In its interface with Ethereum for creating and resulting bet contracts, the BBN will restrict the Ethereum costs to a minimum whilst still maintaining the decentralized nature of the application.
The BETR Directory
It is no use having a wonderful betting system if the users cannot find the bet that they want. Not only that, in order for the system to present sufficient liquidity (so bettors can find the bet that they want to make), and to provide optimal volume for consensus settlement, it is important that all software clients see the same selections as the same thing. As an example, it is equally valid to call a match winner market “match winner” or “winner” or even “moneyline 1X2”. The system provides a mechanism to avoid duplication of markets and presents a unified interface between disparate parties. A distributed directory of bets is built in to the system making it simple for software clients to present a logically ordered menu of choices as found on betrodds.io. The system combines the many “standards” for event and market naming so that the same bet is treated equally. While the API provides all functionality to all participants it is anticipated that there would be more specific apps built that focus on the intended end user. As an example, a sports bettor would in general use an interface similar to modern sports betting apps where bets can easily be found and taken with no concern for the underlying markets and events or laying prices.
Sportsbooks and wholesale bettors utilise the lay side of bets and may or may not integrate the directory services. Some implementation of directory services and lay pricing may be purely API level integrations with existing sports books or exchanges.