🏗️5.0 Features and functions of Winc

Transaction functions Winc is a two tiered network comprised of standard wallets and Oracle Masternodes. Standard Proof of Stake wallets ● The first layer is the standard transactional layer in which basic wallets earn rewards for block formation. ● Provide network security and confirm blocks of transactions that constitute the blockchain, the ledger of immutable transactions. ● Maintain a full copy of the blockchain. Oracle Masternode intranet ● Oracle Masternodes, a second layer of the Winc network, function as consensus agents, forging betting contracts, retrieving sporting events outcomes data, and consensually validating results that trigger contractual payouts. ● Oracle Masternodes also mediate decentralized governance of the Winc network, as discussed in greater detail in section 7.10 Betting functions The Winc system facilitates three modalities of sports betting: 1. Peer to peer betting Peer to peer betting (or “head to head” betting) requires two partners to take opposite sides of a betting contract. The players agree on the betting line and the total amount at stake. One player initiates the bet by posting it to the blockchain from their wallet. When the partner sends coins for the complementary side of the bet, the blockchain tags them as transactions with dispositions contingent upon the outcome of the specified event. Once the event is completed, the Oracle Masternode network records the performance result on the blockchain, triggering a payout to the winner. If the event never happens, the coins, minus fees, are returned to the original transactors. This feature is great for casual players, friends who live apart, colleagues, etc. They can make a plan, forge a contract on the blockchain, and leave the rest to the Winc network. 2. Multi user betting Multi User betting is like peer to peer betting, but in this case multiple users can take the complementary position against a larger bet until the total value of the bet is met. Since this mode of betting requires less specificity about the size of the bet, the blockchain can perform the work of matching multiple bets until an equally weighted or minimum contract is achieved. 3. Peerless direct chain betting Peerless betting does not require a complementary transaction to forge a contract. Any bettor can initiate a contract on chain, which the Winc network is programmed to pay out if the bettor wins. Peerless betting maximizes flexibility for bettors. How does Winc balance the risks of peerless betting? The blockchain pays out winning bets that are confirmed by the Oracle Masternode network, by minting coins for the payout. This means that the blockchain does accrue some risk of coin supply expansion though forging such contracts, but the risk is balanced by several factors. Losing bets systematically destroy coins, creating a balance over time. That’s because 48% of all betting fees are destroyed, tipping that balance in favor of net coin destruction from direct chain betting. In fact, because losing bets destroy more coins than winning bets generate coins on the network, an intrinsic advantage is created for all WINC holders in terms of coin supply. Specifically, on a losing bet of 100 WINC, 96.88 WINC would be destroyed; by contrast, on a winning bet of 100 WINC, only 94 WINC would be generated. This imbalance constitutes the house edge of approximately 3%. The final technological balance is a development called, “dynamic odds balancing.” When peerless betting creates an imbalance in risk, where the payout liability is higher for winning than for losing, the network dynamically adjusts odds to encourage complementary betting that will balance the network liability. Peerless betting is by far the simplest solution for sports bettors because it requires no planning, and eliminates the risk of finding complementary partners. Peerless betting also attracts traditional sports betting operations that routinely manage their own payout liability by placing bets with peer organizations. Now, instead of relying on their peers to take the other side, major sports betting outfits can enjoy low fee betting on the trustless Winc system instead of entrusting assets to competitors. That’s important because regulated competitors are subject to regulatory insecurity and unregulated competitors have no legal obligation to honor agreements. Winc, a decentralized technological system, does not require sports bettors or sports betting organizations to trust any one party whose trustworthiness cannot be verified. Users instead entrust verifiable open source code that they can inspect for themselves.