Re:Peer-to-peer sports betting inside the Bitcoin blockchain
by kylebrown on Tuesday June 24, 2014 @09:22AM
(#7937528)
The problem here is that "trusted" is not intrinsic to the character of some third-party. I might trust someone with $100, but does that mean I would trust them with $1,000,000?
The better solution is to not to rely on trust or semi-trust (i.e. trust multiple parties not to collude) at all. Instead, incentivize people to act in their own self-interest (the same game-theoretic assumption underlying the blockchain). This is how TruthCoin incentivizes voters to adjudicate decisions (voters are analogous to miners): https://github.com/psztorc/Truthcoin
Take 10 reputable sports journalists/well known figures. Pay them part of the 1% profit. In exchange for the money they would agree to provide a proof of the result (signed with their key). Craft the transactions so that for example 4 out of 10 confirmations are needed for the transaction to go through.