The First Betting Protocol on Bitcoin's Blockchain

Feb 19, 2018 at 12:46 // News
Guest Author
First betting protocol on bitcoin's blockchain

A protocol is the precisely defined sequence of steps that involve computation, communication and are run by two or more participants. We come across protocols of various complexity, literally every day of our lives – playing games, socializing at work, participating in elections or browsing through our favourite social app.

As we go through global digitization, we tend to rely more and more on online means of communication such as mobile phones, computers and social media. This alleviates the necessity for “natural” social protocols. Online protocols rely on data transfer that lets us make calls, send files, massages and other data to one another. All protocols that are used in tech are highly formalized to ensure that all the processes are run correctly.

Blockchain and cryptography supplement the definition of protocols by adding value in the form of security, and anonymity. Thus, cryptographic protocols run on the blockchain are a set of programmable steps of secure, pseudonymous peer-to-peer data transmission. Protocols can be referred to as - guidelines that must be followed by two or more parties to achieve a result. These guidelines consist of the requirements for a specific “transaction”. Such protocols aim to provide precise services that operate within well-formalized rules and guidelines.

A good example where protocols are not yet utilized to their full potential is betting. In general, a betting protocol is aimed at defining the rules required to perform the process of betting, from the creating a wager to determining an outcome and making payouts. A betting protocol can be subdivided even further depending on the stages of the process, e.g. betting protocol of creating a wager.

In the field of online betting today, all protocols are used by bookmakers and players and are represented as a set of rules that a bookmaker makes publicly available. The implementation of such protocols is up to the bookmakers, whether this bookmaker is trusted or not, depends on its reputation. Integration of blockchain in betting protocols will guaranty secure, fast and reliable data transmission for all the parties, as well as the fact that all rules are followed to the T.

PROOF OF TOSS is currently developing a blockchain betting protocol. They’ve analyzed today’s betting industry and found that some weak links in excising betting protocols result in lack of transparency and control over personal funds, long payouts and chargebacks.

Aimed at addressing these issues, PROOF OF TOSS is creating the first betting protocol on Bitcoin’s blockchain. The new protocol will include rules on how to create a Wager, how to make a Bet, the way results are determined and confirmed as well as, how to withdraw funds. PROOF OF TOSS has determined what logics should be represented by a standalone betting protocol that will provide exceptional betting services. Being the sidechain of Bitcoin RSK prevents the double spend problem by merge mining. RSK is the first Bitcoin blockchain to run smart contracts. These smart contracts will be used in the new betting protocol to guarantee that the predefined rules are followed.

Advantages of the new betting protocol on RSK’s blockchain:

●       Created for both bookmakers and players

●       Judging logics that are backed by the “wisdom of crowds” theory

●       High level of protection from fraud

●       Instant payouts

●       Full control over personal funds

●       Distributed Crowd Judging (DCJ) mechanism as a reliable way to confirm results of wagers.

●       Multiple roles for users: Originators – create Wagers, Players – Bet, Judges – confirm results by participating in the DCJ.

As RSK’s blockchain is currently under development, the beta version of PROOF OF TOSS betting protocol will be launched on Ethereum blockchain, enabling users to test the new betting protocol within the PROOF OF TOSS ecosystem. As soon as RSK’s blockchain is moved to live, the protocol will be transferred from Ethereum, making PROOF OF TOSS the first solution with a betting protocol on Bitcoin’s blockchain.

At the moment PROOF OF TOSS is going through a closed presale stage. For more information about the closed presale or the project contact the PROOF OF TOSS team, personally in Telegram.

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