The application of blockchain and cryptocurrency is not new in sports. In 2019 horse racing galloped on its path into the blockchain, fixing the scene up to forge a new world of digital horse racing. Four years after, the impact of crypto in the age-old game is evident to all.
There’s more to come. This is why this article delves into the application of blockchain technology in horse racing and explores the various ways it could influence the future of the sport.
Applications of Blockchain in Horse Racing
The application of blockchain technology in horse racing is still in its early stage. Here are the major ways to apply blockchain networks and cryptocurrencies in horse racing:
Digital identity and ownership
Blockchain technology creates a tamper-proof and immutable digital record for all horses, owners, and trainers. Once you record these details into the blockchain, no third party can alter or delete the information.
With the blockchain, you can verify ownership and identity records quickly and efficiently. It also allows using digital signatures to verify the identities of investors and horse racing entities. Each signature is unique to a person or business and helps prevent fraud within the system.
Betting and wagering
Blockchain technology creates a distributed ledger that allows all betting and wagering transactions to be recorded and verified securely and transparently. This is because it guarantees the integrity of games like the 2023 Kentucky Derby and eliminates the need for intermediaries. So, for example, you can click the link twinspires.com/kentuckyderby/betting for ways to place bets on the 2023 Kentucky Derby.
The blockchain processes all transactions in real time to ensure you receive your payout immediately after the race is finished. Additionally, no central authority controls the betting process.
What’s more, is that horse racing receives global reach. This consequently increases the market’s liquidity and provides more opportunities for bettors to place wagers.
Horse racing associations use blockchain technology to their advantage by creating their own cryptocurrencies, aka fan tokens. They allow fans to purchase their tokens to enjoy exclusive experiences and content. In addition, fan tokens enable fans to relate directly with the racing entities and become more involved in the sport’s governance.
In addition, fans also gain more visibility into the ownership and breeding of horses due to the accurate record system of the blockchain. As a result, they become more invested in the games and feel more connected to the horses.
Digital horse racing
Blockchain technology offers a digital horse racing platform that allows fans to buy, sell, and trade digital horses. Besides, it allows everyone to observe and participate in real-time races 24/7.
Each digital horse comes as a non-fungible token whose record of ownership is within the blockchain. The blockchain records the outcome of each race and prevents any form of alteration. As a result, winning participants receive rewards based on predetermined rules.
The traditional horse racing industry is centralized, and a few large organizations control how information is spread. The blockchain will clear off lingering concerns over data accuracy, fairness, and transparency in the sector. It may also make data available to everyone interested.
Data sharing enables secure and transparent data sharing between stakeholders and investors in the traditional horse racing industry. As a result, horse owners, trainers, jockeys, veterinarians, and race organizers can easily share and receive current data on horse availability, training and injuries, and breeding and maintenance operations.
Smart Contracts may Alter the Future of Horse Racing
Smart contracts can automate the traditional horse racing sector. For example, regulators may use it to enforce agreements between relevant parties like owners, jockeys, betting platforms, and race organizers.
This is why smart contracts verify the race result and ensure fair distribution of all rewards.
For example, when a smart contract handles the rewards distribution for a race, the contract would contain conditions for the prize distribution, including the percentage for the winner, runner-ups, and organizers.
Above all, the blockchain will improve major aspects of traditional horse racing, and its introduction of digital horse racing will usher in more opportunities for fans to make significant profits.