The decentralized betting market has grown quickly, giving birth to a variety of platforms that each approach the market in different ways. Augur has recently come under scrutiny for assassination markets that have popped up on the platform. BX, an alternative decentralized betting platform allows the market to approve all bets, meaning that the creation of such potentially harmful markets could have been denied.
BX.Bet, which launched its MVP on August 9th, is a global, decentralized peer-to-peer betting and prediction market ecosystem that will allow its users to place bets on any market created by the community. The company is based in Malta which is fast developing as a top centre for esports betting.
Like other decentralized betting platforms, BX is not managed by a central authority; however, all new bets that are posted on the platform must be approved by the community itself. This model could theoretically have stopped the creation of the highly controversial assassination markets which are taking place on platforms such as Augur.
Celebrities and political officials such as Jeff Bezos, Betty White and Donald Trump have all had bets placed on their lives. This is troubling because such bets could trigger related events in reality.
Augur’s white paper states that “Anyone can create a market based on any real-world event. Trading begins immediately after market creation, and all users are free to trade on any market.”
This approach, while clearly adhering to the ethos of decentralization, does not provide any opportunity for the community guide itself in its own potentially safer and more positive direction. BX takes a different approach: “After the market is created, it must be pre-approved by the community. To this end, every betting market will be listed in a separate category (new markets) and will need a certain number of approval votes from the community before it will be listed as a public betting market,” states the BX Whitepaper.
“While we’ve created the concept of BX, we had intense discussions about the potential tradeoff between full decentralization and the opportunity to make the BX ecosystem a safe and legal place. In the end, our tremendous experience in the betting industry and the importance of precise control mechanism which caused the betting industry to be as successful as it is today led to the choice to implement a community-based control mechanism,” said Christian Lenz, Co-Founder of BX.Bet. “Additionally, we are also collaborating intensively with the regulators to establish BX as a fully compliant player in the gambling industry. This was definitely not the easy route – but Augur’s problems show clearly that we are walking on the right path.”
Further, BX provides quality control because in the event that a fraudulent or invalid market is created, the creator will not receive any payment the proposal and their deposit will be burned.
“This means, that if one were to create a dangerous market on BX, that person could have a high probability of having their tokens burned,” added Lenz.