Web3 sportsbooks promote an image of transparency, and on-chain settlements contribute significantly to this perception. However, the actual verification capabilities may fall short of the marketing claims while exceeding the expectations of skeptics. Bettors often find themselves misinformed about the extent of what they can verify.
How On-Chain Settlements Work
In a non-custodial sports betting environment, placing and settling a bet occurs through public ledger transactions, recorded directly on the blockchain. Details such as the wager amount, the agreed odds at that moment, and the timestamp are documented, alongside a record of the funds shifting to the winner's wallet. Once these records are created, they remain unchanged and irreversible.
Taking Dexsport as a prime example, it operates a transparent betting desk where wagers and their respective outcomes are logged as smart contract transactions accessible to everyone. Thanks to its non-custodial nature, when a bet is settled, the payout goes directly to the bettor's wallet rather than an operator-managed account. This is the fundamental essence of what is meant by
