Gambling system on blockchain

Term DefinitionsSmart ContractA computer protocol designed to facilitate, verify, enforce, or disintermediate contract negotiation or performance in an information-based manner, such as computer code written in Javascript or Solidity object-oriented programming languages to define and monitor the terms, conditions, and events of legal or financial transactions related to blockchains.BlockchainA distributed ledger for storing transaction data on an open, decentralized, disintermediated, and trustless network of computer nodes, such as the Ethereum blockchain.Decentralized Application (dApp)A computer application deployed to a blockchain, whose front end is accessible using an internet browser and whose back-end computer code (such as smart contracts) runs on a decentralized peer-to-peer network of computers with an unlimited number of participants.Digital Currency WalletAn electronic device or online service that facilitates the storage, transfer, and receipt of currency (including digital currency or cryptocurrency). External Oracle Service An external computer or network of external computers or oracles configured to request, send, and verify real-world events and submit the provided data as a response to a smart contract, which may trigger a state change on the blockchain. Application Programming Interface (API) A definition, protocol, tool, or computer code designed to facilitate the creation of software, such as software for retrieving data from a database, application, or other API. Data Carrier A medium used to store and transmit non-transitory machine-readable data. Data Aggregator An entity that collects, stores, and transmits data. Digital Agreement Event or "Handshake" Any suitable means of accepting the terms of a smart contract, such as using an Internet browser-enabled utility such as MetaMask to authorize a digital currency transaction, such as placing a bet or transferring cryptocurrency to another digital currency address based on the bet, odds, price, or other value proposition provided. Sports and Gambling Data Any suitable form of data related to sports or gambling, for example, scores, results, statistics, odds, betting records, injury reports, weather data, voting records, and blockchain transaction data.

Short Answer Question

What problems does the subject of this patent application attempt to solve with existing gambling infrastructure?

What is the role of smart contracts in this invention?

How do external oracle services ensure the fairness of betting results?

How do users use dApps to interact with the system of this invention?

What are the advantages of using cryptocurrency for sports betting compared to traditional sports betting?

Explain the difference between "fixed odds betting" and "dynamic odds betting" in this invention.

How does this invention use crowdsourcing to determine dynamic odds?

What type of betting is described in this invention that allows users to act as bookmakers?

In addition to sports betting, what other types of betting can this invention be applied to?

Describe the role of data carriers and application program interfaces in the system of this invention.

Short Answer Question Answer

The subject of this patent application attempts to solve the inefficiency, uneven distribution, variability, and intermediation problems of existing gambling infrastructure. It leverages blockchain technology to create a more secure, transparent and automated betting system.

Smart contracts act as trustless intermediaries that manage betting terms, process payments and automatically distribute winnings after verifying results. They ensure transparency and fairness for all participants in the betting process.

External oracle services act as a bridge to collect and verify real-world data (such as sports scores or event results) from reputable sources. This decentralized source of information eliminates the risk of manipulation or single points of failure, ensuring the fairness of results.

Users can interact with the system through decentralized applications (dApps) that can be accessed on their mobile devices, tablets or computers. The dApp provides a user-friendly interface for viewing odds, placing bets, tracking bets and receiving winnings.

The use of cryptocurrencies allows for faster, cheaper transactions, greater transparency and enhanced security. Blockchain technology eliminates the need for central authorities, reduces fees and increases transaction speeds, while the decentralized nature of cryptocurrencies improves transparency and security.

Fixed odds betting involves pre-set odds determined before an event begins, while dynamic odds betting allows odds to fluctuate throughout the course of an event based on real-time events and betting activity.

The invention can leverage aggregated data from multiple sources or leverage crowdsourcing to create more accurate and dynamic odds by allowing users to vote and weight the probability of specific outcomes.

"Exchange betting" enables users to bet against each other, effectively allowing users to set odds and act as bookmakers.

In addition to sports betting, the invention can be extended to other forms of betting, such as e-sports, political events, financial markets, and even blockchain-based events itself (such as predicting the hash value of the next mined block).

Data carriers (such as APIs) are used to retrieve relevant information (such as odds, results, statistics) from various sources (such as sports data aggregators), while application program interfaces facilitate the seamless exchange of this data with smart contracts.

Paper Questions

**Instructions:** Write a paper for each of the following questions.

Discuss the advantages and disadvantages of integrating blockchain technology into the gambling industry.

Analyze how the use of smart contracts for gambling can improve the transparency and security of traditional gambling methods.

Examine the role of external oracle services in blockchain-based gambling systems and their importance in ensuring data integrity.

Assess the potential impact of blockchain-based gambling platforms on the future of the gambling industry and on a wider range of users and the broader regulatory environment.

Compare and contrast the different types of gambling described in this patent application, highlighting the unique features, advantages, and disadvantages of each approach.