The young startup sports betting decentralized exchange company representatives gave an interesting interview to NEO London in which they discussed the development process and vital decisions. One of the most crucial topics was their decision to build on the NEO system instead of the pre-announced Ethereum network.
Ethereum Can’t Handle so Much Traffic
It seems that the team behind Block Sports has big plans as they are already considering scalability in the starting phase of the development.
“Initially we were designing Block Sports for the Ethereum platform,” Tsering Redmond, co-founder, and company’s CEO started to explain.
“But as we all know, Ethereum doesn’t play very well with high transaction volume platform, so we were quite anxious about performance and how that would affect the user experience,” he emphasized what is considered to be the Achilles heel of the Ethereum.
“When we investigated Neo it was a no-brainer for us. Apart from the enormous performance improvement offered by NEO, the development language capabilities were very attractive,” the CEO praised the rebranded AntShares project.
Block Sports is Disrupting the Centralized Cryptocurrency Sports Betting Market
Tsering Redmond also went on to explain how centralized cryptocurrency exchanges create counter-party risk by forcing users to entrust their funds to platform operators.
He stressed the well-known problem of centralized exchanges multiple hacks, which left investors without millions of dollars worth of cryptocurrencies, thus declaring that their decentralized exchanging system is going to be far less vulnerable to those kinds of malicious behavior.
“Cryptocurrency sports betting is a huge market but entirely handled in centralized environments,” Redmond said. “Block Sports is simply a decentralized sports betting platform, where all critical processing such as matching, escrow, and payouts is handled on-chain in a decentralized environment,” he stated while adding that decentralized system removes the counter-party uncertainty associated with trusting platform operators to keep user’s funds in escrow.
NEO’s GAS Will be the Main Currency on the Platform
The only thing a user has to have to access the betting exchange is a functioning wallet which contains some GAS. A user then deposits funds, and bets can be placed on the exchange or directly via smart contract through manual invocation.
All betting is handled on-chain – you can trust that your funds are safe and that you are entitled to a payout.
Upon the event’s ending, bet-against-the-outcome verification process takes place, which distributes winning funds to the user’s account and allocates appropriate fees, with every transaction happening on the NEO blockchain, in GAS cryptocurrency, whose primary use was to be the means of payment for NEO node holders.
The Team is Going to Issue Their Own BSX Token – What is it For?
As the interview was nearing its ending, Mr. Redmond brought up an interesting point of view as he declared that the team doesn’t see the value in creating another needless utility token when there was already a perfect utility token available, NeoGas (GAS).
“The great thing about GAS is that anyone with NEO is already generating a steady stream, so users don’t have to go out of their way to get their hands on a new currency just to get started on our platform,” he explained before proudly stating that Block Sports is the first real use case for GAS.
BSX, as explained by Redmond, gives users a share in fees generated by the Block Sports exchange.
By sharing revenue with your token holders, you are making your token behave like a security, and that is the very thing the majority of crypto-related token issuers are trying to avoid.
Nevertheless, if Block Sports can find a way to dance through the forest of complex security regulations and reward their backers at the same time, it will be a noteworthy practice which can change the way we are looking at the token-company connection in the future.