27. November 2020

Crypto betting provider comes under fire for citing AP report

Crypto betting provider YieldWars enters the eventual election victory of Joe Biden as a fact and thus causes criticism.

After the influential Associated Press news agency announced Joe Biden as the winner of the American presidential election over Donald Trump, this message was entered on the Bitcoin Revolution and EOS blockchains, which at least one crypto bookmaker automatically resulted in the payment of a bet.

As a result, criticism arose from some quarters of how useful it is to integrate such a message as an Oracle in blockchains

This in turn sparked a larger discussion about credibility and determinism in smart contract-based crypto betting.

The blockchain company Everipedia announced on October 15, 2020 that it intends to weave data from the Associated Press, which is provided with cryptographic evidence, onto the blockchains of EOS and Ethereum via the Chainlink Oracle network as part of the US election.

„We are making history by being the first company to publish the AP election reports on blockchains and make them usable,“ said Everipedia Vice President for Business Development David Liebowitz in the accompanying press release.

The crypto betting provider YieldWars then opened a bet on the duel between Trump and Biden, which is based on the corresponding Oracle with data from the AP. More than $ 250,000 was wagered in just two days.

In an interview with Cointelegraph, one of the anonymous founders of YieldWars said that referring to Everipedia and the Associated Press was a logical consequence:

“On closer inspection, we realized that this was our best option. The AP is probably the most trustworthy news agency in the world and as an anonymous project we knew we needed a trusted source for people to trust us. “
Critics now oppose, however, that the elections have not yet been finally decided, so the AP would not be sufficient as an Oracle.

This is how a Twitter user writes :

“Take it very slowly. To enter false claims as fact on the blockchain is a mistake. Biden could win, but there will be recounts and legal appeals have already been filed. So how can Biden’s victory be entered as a fact on the blockchain? “
Another Twitter user mockingly says : „Can I also register as president on the blockchain?“

However, the anonymous YieldWars co-founder is confident that crypto betting will use several oracles in the future, which will take the wind out of the sails of criticism of this kind in advance:

“In the future there will be several oracles like AP and I am sure that the next election will take place. If the outcome of crypto bets is determined by the interaction of several oracles, there will be no more arguments. „