Get Wise to Smart Betting: a New ICO Heats the Prediction Market

Published February 28, 2018 by Lee R

Smart Betting services such as BlitzPredict offer market gains from buying low and selling high before the event.

With BlitzPredict about to offer the next major ICO of its kind, it’s time to take a closer look at the iGaming space that has come to be known as Smart Betting.

Betting on Punters?

Smart Betting appears to be creating a new game within the game: with the ICO less than a week away, BlitzPredict is the latest Smart Betting provider to offer its own brand of Smart Betting Solutions for trading on betting activity. 

The BlitzPredict Solution

BlitzPredict scans and aggregates betting activity across all “markets” comprised of exchanges and books including sports, crypto, eSports etc. to deliver users the best odds, and thus the best share price, on a given event available in the moment when the user seeks to place the bet.

The Technology

BlitzPredict would spare the user from monitoring all markets by themselves with the BlitzPredict Aggregator, while BlitzPay technology spares the user the standard ten day plus wait to receive funds from centralised banking systems by paying out funds immediately at event’s end through the BlitzPay Liquidity Reserve. 

Community Building

BlitzPredict is also planning to sponsor what they are calling analytics tournaments, bringing into the fold aggregators and monitors who most effectively identify betting trends.    

Automated Conditional Betting

Add to this the ability in BlitzPredict smart contracts to enable bettors to set the conditions for which they want to execute trades, and you start to see the outline of Smart Betting on the prediction market in its incoming form.

Presetting Wagering Conditions

BlitzPredict offers in its white paper the simple example of a qualified user setting conditions of betting 1 ETH when New England Patriots are trading at 60% or below.

Reaching Outside the Blockchain

BlitzPredict would also make their services and products available to those not on the blockchain, a market which BlitzPredict classifies as 99% of current consumers.

The “Trade” Concept

The trades refer to wagers which are bought at specific odds offered by a specific provider in a given moment in time, as compared to the average selling price (a.k.a. the median odds calculated from all exchanges and bookmakers) or the price after odds.

About Prediction Markets

The binary outcome of a prediction about the future constitutes the basis for prediction market technology, with each option’s share price fixed to and reflecting its probability of occurrence.

Decentralization in All Smart Betting

A look at the competition reveals decentralization to be a key component of Smart Betting, which through the use of smart contracts protects users from manipulation of centralized systems, reduces transaction costs and improves transaction transparency and speed.

How the “share” Trading Works

If you buy shares in the right outcomes you win real money profits.

In competitor Augur’s system the value of each outcome is set at $1, with the price of the share fixed to the odds of the outcome. 

Except the user is buying the action, not the outcome: a share bought at even odds costs 50 cents. If the trader predicts the right outcome, he/she gets back a dollar for every share bought. If wrong, the trader loses the money used to buy the shares, as uniformly calculated to price per share times number of shares bought.

Recent Smart Betting ICO

In the first prediction market offering, decentralized platform Gnosis set a new record for fastest crowdsale ever to sell out more than $10 million by raising $12.5 million (m) in a Dutch auction. At a total worth of 250,000 Ethereum ETH, all Gnosis tokens sold out in twelve minutes, becoming one of three tokens of any kind to ever sell out in under fifteen minutes.

Getting in The Game

Every Smart Betting operator will have their own variations as a unique product, with BlitzPredict the next major Smart Betting provider to offer an ICO.

More information about next week's BlitzPredict offering is available here.

Smart Betting Tip

Supplement Smart Betting research with trading research for effective buying and selling of prediction shares.

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