Billions are spent on betting in the United States and across the world, with many losing plenty while some win and sometimes bigly.
A new dapp however wants to make everyone a winner. Trump v Biden, win or lose you still get your money, and your winnings if you choose the right candidate.
Manchester United or Liverpool. Fight all you want and enjoy the game even more because you can only be richer at the end of it, not half of you being poorer.
How? Well with smart contracts, dapps, code lads, and MagicBet, a new project created during a hackathon organized by Aave. That being the flashloans zone where you can also lend and borrow in the new bankers’ playground.
Unlike in traditional banking where they don’t even care about your deposits, so give you a 0% interest rate, the name of the game in new banking is deposits, deposits, deposits.
So here you bet say 1 eth, and this is now ‘deposited’ to the smart contract, which instead of keeping it there sends it off to Aave in this case.
Aave because this was their hackathon, but as all of these dapps are in the open space, you can have bots to scout around for where is the highest demand for an asset and thus where is the highest interest rate, with that constantly changing as market conditions change.
Potentially you can make this even more complicated by giving it arbitrage capabilities or even market making.
In the end who wins doesn’t matter. Whether Trump or Biden or if this is a soccer match, whether Manchester United or Liverpool, you get your one eth back.
If your team or candidate wins, however, you get your one eth back plus all the interest and profits that eth has accrued with the help of the bots.
So making this productive gambling in that not only are you expressing a view and are having a stake in the outcome of the match so that you can enjoy it more, but you are also facilitating liquidity and market activity while making money without any risk.
Well, obviously except for potential hacking risks due to some bug in the contract, but coders are getting better and better at ironing their dapps.
On the upside you get something that you probably can’t in the traditional world because the traditional world is not open source.
You can’t even borrow and lend in the traditional world without licenses and mountains of regulations because you could just be running with the money.
Here however it is the code, the smart contract, that holds the money. That code has to obey the written rules, so it can’t just run away. That code moreover can read other code by dapps and so talk to them. Those dapps also have to follow their own rules.
Making all this automated and trustless, in the process so getting rid of potentially corrupt officials or third parties that lay rules not in the public interest, but their interest.
Moreover other dapps can now talk to this dapp. So you can now build things on top, which we can’t envision, that incorporate this betting capability with it maybe being a very small part of a bigger dapp network.
A network because smart contracts are Turing complete so within each smart contract you can have a whole world.
Imagination so being your only limitation as we now start to move away from what soon may be seen as primitive writing or paper contracts which the other party can breach as they please, to code contracts which you can’t breach.
We haven’t yet began to grasp what that means exactly, but it is easy to see even now how the world will transform slowly and unnoticeably in the coming years and decades.