When the internet became a typical commodity, online betting services made their staging and quickly began to multiply. Online betting started when the state of Antigua and Barbuda issued the first offshore licenses to betting companies providing online betting services in 1994.
The dawn of internet betting yielded a massive expansion that benefited all its participants. Players gained access to bookmaking services across the world, while bookmakers saw their overhead evaporate as bricks-and-mortar offices became obsolete.
Now the world is on the verge of the most important technical revolution since the rise of the Internet: “the Blockchain Revolution”. Blockchain technology is being applied to innovative projects, providing additional transparency, greater reliability, reduced transaction costs, enhanced scaling capabilities, and many other unique advantages.
Betting today has become much more than simply an entertainment industry; modern-day betting is a mixture of strategy, science, and cutting-edge technology. The integration of the blockchain is a logical step providing effective solutions to problems that have long plagued the industry: scalability, trust, and an inherent lack of transparency.
We are proud to introduce Bettium, the analytical blockchain platform for peer-to-peer (P2P) betting, empowering users with a variety of innovative capabilities, as well as unprecedented flexibility and reliability.
Bettium provides users with simple and efficient tools to analyze Big Data. An Artificial Intelligence assistant (nicknamed "Merlin") will allow players to execute tailor-made betting strategies autonomously. Those who prefer to rely on the expertise of professionals will be able to subscribe to specialized forecasts, mimic their bets, or even completely entrust funds to an expert for a small fee.
On the platform odds are determined by the players betting against each other, not by a third-party bookmaker or other centralized authority. Bettium is an analytical platform, not an intermediary, providing powerful data tools and services to help players make educated decisions. With a few clicks of the mouse, an amateur can bet like a professional, forecasting and earning similarity with industry leaders. Bettium's fees are little compared to traditional bookmakers 0.15% vs. 7-10% - which will incentivize mass migration to the platform.

The Sports Betting Market Overview

The gaming industry has demonstrated steady growth, with an annual turnover surpassing $3 trillion in volume. Betting is the third largest segment in the overall gambling industry, behind poker and casino games, but the largest segment in the online market with 48% of annual turnover.
Betting on mobile devices is increasing rapidly, with 30% of turnover currently originating from mobile applications. The mobile segment has been a major growth driver for several years, corresponding to general trends in consumer technology. Desktop computers are largely being relegated to the workspace, while shopping and entertainment are carried out on mobile devices.
According to The Statistics Portal, the volume of online betting is projected to reach $551,96 billion in 2018, more than twice the level of 2009. The global dispersion of market participants is expanding, recently fueled by a major influx of players from Africa and Asia. In Nigeria 60 million individuals bet on sports regularly, while in South Africa 50% of the population is involved in the industry in some form.

Online Betting Market ($ Bln)

At present the most popular sport for bettors is football (soccer), generating 40% of market aggregate revenue. Next are tennis, basketball, hockey, and volleyball, as illustrated below:

Top Sports by Betting Revenue

Online Betting Revenue by Region

Online betting today is a significant and rapidly expanding market. Traditional bookmakers, while still popular, are gradually being replaced by online betting sites. Thanks to increased accessibility, rapid expansion of the consumer base and creation of new platforms, the opportunities for online betting growth are nearly unlimited.

E-Sport Betting

E-Sports are individual and team competitions based on video games and the preparation process surrounding them. The E-Sport market is currently expanding by leaps and bounds, with dozens of global and regional leagues appearing since the concept emerged 10 years ago. E-Sport as a phenomenon is gaining increasing exposure in mass culture and media.

Expansion and Official Recognition

Riot Games has hosted the annual World Championship in League of Legends (LOL) since 2011. Over the course of six years, the total prize pool has swelled from $100,000 to $6.7 million. Other popular E-Sports with World Championships include Dota 2, Counter Strike: Global Offensive, World of Tanks, and Quake. In 2018, E-Sports will for the first time be recognized as an official part of the Asian Games, an event recognized by the IOC and surpassed in prominence only by the Olympics itself.

According to Newzoo, E-Sport viewership will reach 275 million people in 2018 with annual revenue of $905.6 million, 38% higher than the prior year. 77% of this revenue is projected to accrue from three areas: sponsorship deals ($359 million), advertising campaigns ($174 million), and content licensing in the media ($161 million). These segments combined have increased a staggering 72% since 2017, i.e. in a single year. The total market is projected to reach $2.4 billion by 2020.

Betting on E-Sports is gaining in popularity, possibly even outpacing the growth of E-Sports themselves. While much of this activity is currently concentrated in obscure, ad hoc betting communities, analysts expect soon to see the emergence of a global industry worth hundreds of millions of dollars.

Forms of E-Sport Betting

Betting on E-Sports takes many forms, most of which can be grouped into four main categories:

• Traditional Bookmaker Bets: Most online bookmakers currently offer some options for betting on E-Sports, although the quantity and quality of the events covered varies greatly from one service to another.
• Fantasy Betting: This type of betting is especially popular in the US, where access to regular bookmakers is restricted by various rules and laws. Instead of betting on real events with real money, users assemble virtual teams consisting of real players competing against each other through some specialized scoring system, based on player performance in real competitions.
• Skin Betting: In-game items, such as weapons or skins, when tradeable, can be used as a betting currency accepted by special online services for this type of betting. The volume and total value of this segment is hard to determine due to a dearth of aggregate statistics. Bets can be high in this segment, with thousands of bettors finding categories specific to their tastes.
• Proposition Betting (Prop Bets): Players can also make specialized bets on specific conditions of the game. Such bets could take various forms, such as which team will reach a certain landmark first, which team will draw first blood, which character will reach a certain number of kills first, whether the match will last longer than a certain timeframe, etc. The number and type of bets in this category is as diverse as the imagination of the bettors.

Certain online services specialize in E-Sports exclusively, i.e. with no offerings in traditional sports. The number and popularity of such sites has dramatically increased in the last few years. These sites appear to target a younger audience than traditional bookmakers, suggesting that gamers themselves are becoming increasingly interested in betting.

Expansion and Official Recognition

Growth of the E-Sport betting market is surpassing all expectations. It is difficult to provide accurate data due to the short history of eSports and wide market dispersion. A recent study by Eilers Research suggests that the size of the E-Sport betting market could reach $20 billion by 2020, a dramatic expansion from the 2017 volume of $3 billion, according to US estimates. Approximately 38% of current betting volume is associated with League of Legends, 29% with Counter-Strike: Global Offensive, and 18% with Dota 2.

Global E-Sport Betting Market (projected)

2016	2017	2018	2019	2020
$ 1.9 Bin	$ 3 Bin	$ 8 Bin	$ 13 Bin	$ 20 Bin

E-Sport Betting by Region

According to polls conducted by SuperData in 2018, global E-Sport

61%	23%	12%	4%
Asia	US	Europe	Other

Challenges of the Betting Market

Despite the popularity of online betting, a number of difficulties hamper the development of the industry, impeding free, safe access of bettors to reliable platforms. The online betting industry is subject to the same risks inherent in all centralized systems, including lack of transparency, technical vulnerability, and dependence on third-party intermediaries, such as banks and payment services.

Rregular vs. Irregular Bettors

The vast majority of bettors can be classified as casual or irregular bettors. These will place I or 2 bets per year on sporting events, often based on personal interest, such as a favorite team or a major annual event, like a league or world championship. Only 10% of the market consists of regular bettors, and only some portion of them can be considered professionals.

Success Ratios

Interestingly, analysis shows that the same percentage (10%) of bettors overall are able to maintain a positive financial balance in the long term. The other 90% will lose money for various reasons, primarily lack of access to specialized information that professionals use on a regular basis. While there is no proof that the 90% who "lose" are also the 90% who bet casually, a correlation seems likely.

Non-transparency, Fraud and Technical Vulnerability

One of the chief problems of centralized systems is the possibility of an intermediary or "man-in-the-middle" attack (Ml TM). An MITM attacker secretly retransmits or modifies the connection between parties who believe they are communicating directly with each other. The attacker compromises exchange of information by connecting to a communication channel, interfering with the transmission protocol, and deleting or distorting information. The websites of online bookmakers and mobile/desktop applications are subject to such attacks on a regular basis.

High Fees and Intermediaries

In classical betting, online transactions are subject to commissions and fees taken by banks and/or payment platforms. These can range from 3% up to 10% or even higher in certain markets — with both players and bookmakers bearing the cost. Centralized bookmakers will employ various non-transparent strategies to compensate these fees, such as adjusting odds, reducing betting limits, or increasing their own fees. Sometimes anti-fraud and currency control systems in banks will completely block betting-related transactions.

Licensing and Regulation

Existing licensing systems are fraught with imperfection. These general consist of a set of bureaucratic procedures to verify the trustworthiness of a bookmaker or the parent company based on data provided by the latter. Licensing authorities ostensibly check the technical robustness of the platform, but often superficially, as the relevant structures have neither the time nor the expertise to conduct effective analysis of the software or platform design.
Even honest, fully-licensed bookmakers often face difficulty from the banking sector, which tends to view betting as a high-risk activity and therefore can be reluctant to provide account and transfer support. Additional problems come from regulators who seek to restrict access in certain areas due to local legislation, which itself is often vague or subject to regular modification.

Such measures are formally aimed at ensuring security, but in fact do little to protect players or deter scammers. Over-regulation in some locales actually makes legal business unprofitable, thereby stimulating the development of a black market. As a result, the industry becomes more dangerous, not less, and players face additional risks from shady operators.

The following features are essential to create a safe and sustainable environment for players and industry experts:

• Decentralized platform - to eliminate high commissions from banks, risk of blocked payments, and inefficiency due to bureaucratic procedures
• Full technical security - to minimize the potential for MITM and other cyber-attacks on players and the platform in general
• Transparency -to improve the image of the industry as a whole and provide access to a wider group of consumers
• Support network - to provide data support for new/amateur participants that would otherwise not engage in betting
• Versatility - to allow for the development and support of betting teams and/or other solutions that appeal to modern, tech-savvy consumers.

Blockchain technology can provide a solution encompassing all the above features: decentralization, unprecedented security against fraud and hacking, transparency, and as much support/versatility as the designer chooses to incorporate.

THE BETTING SOLUTION

About the Platform

Bettium is a decentralized blockchain analytical platform for peer-to-peer (P2P) betting offering Artificial Intelligence (Al), Big Data analytical tools and algorithmic capabilities. Bettium provides unified functionality for professionals, amateurs, analysts, experts, and developers of betting solutions.
The traditional betting industry, with its inefficiency, over-regulation, and bloated commission structure, is ripe for disruption. While other blockchain solutions have emerged, none presents an infrastructure solution with the functionality and capability of Bettium. More than a betting space, Bettium is a comprehensive database, a repository for information and systems that can potentially make all decisions for the user.

The Solution

A fully decentralized platform, Bettium resolves all the challenges that have plagued traditional betting systems. The platform provides a transparent and safe betting system, completely protected from manipulation by players, third parties, and the bookmaker himself. P2P betting is by its nature fair and self-regulating: with odds and terms determined by users themselves, there can be no manipulation to cover fees or boost margins. Built-in Al and Big Data capabilities will allow players to develop their own forecasting strategies and combine them with algorithmic capabilities available on the platform. Bettium will also provide access to the statistics and forecasts of successful players, experts and analysts.

Betting and settlement operations take place exclusively through BETT Tokens, which can be bought and sold on an internal exchange. Tokens thus will continue to have intrinsic value long after speculators have left the market.
Decentralization ensures that the system will be available worldwide, practically immune to shutdown, and free from third-party interference. Under a system of oracles and smart contracts, winnings will be paid instantly and automatically, without the involvement of bookmakers, operators, or any bank/ platform that might impede the process.

All users will have access to professional analytical tools and a comprehensive database on players, teams, matches, and events compiled by our Big Data engine. Assistance from Al and expert forecasts will be available to players that want to improve their strategies.

Use of Blockchain and Decentralization

Blockchain refers to a decentralized public registry storing records in multiple locations of all transactions that have occurred since inception of the registry. Each transaction is irreversible and verified by a consensus majority of participants. With thousands of copies on nodes throughout the world, Blockchain is by its nature immune to most hacking attempts. Advantages include transparency, anonymity, efficiency, scalability, and many others.

Transparency and Data Authentication

All records in the blockchain are decentralized, unchangeable and irreversible. At the same time, they are completely transparent, i.e. available for viewing at any time by any member of the network. The same database is replicated to each user, meaning each node is able to authenticate and verify any new or prior transactions. "Smart contracts" can be set up under which certain actions will irrevocably take place (such as the exchange of money) if certain outcomes occur (such as one team's victory in a sporting event).

Anonymity

Entries in the blockchain are anonymous. While the transactions of a given account or wallet can be viewed by any member of the Blockchain at any time, accounts themselves are not identified with individuals. The user's personal information remains confidential, protected by essentially unbreakable enctyption protocols.

Efficiency

Transactions on conventional betting services pass through a number of intermediaries (banks, payment systems, brokers), incurring commissions at every step. Blockchain allows the user to conduct transactions directly, without intermediaries, under transparent conditions known in advance to all parties. This is true for commercial contracts, private payments, betting on the Bettium platform, or any other transaction carried out on the blockchain. Commissions are minimized and transaction speed maximized, as users connect to each other directly in cyberspace without interference from banks or third parties.

Scalability

The blockchain is supported by a specific number of independent nodes ("masternodes"), which are connected in a P2P network not managed by any central authority. The number of masternodes employed can be adjusted depending on the number of agents and transactions on the network, thus providing a stable platform even at high levels of traffic. The Bettium platform will function efficiently and reliably with any number of users, providing scalability that would be impossible to achieve in a centralized system.

Traditional Systems vs. Bettium

Traditional Systems	.

• Users bet against bookmaker platform wins when bettor loses
• Non-transparency — odds and fees subject to manipulation
• High fees (7-10%)
• Potential for non-payment and/or fraud
• Low withdrawal limits, high minimum deposit requirement
• Low bet limits
• Slow transactions
• Platform analyzes bettor performance, blacklists successful participants
• Potential for funds to be frozen if centralized platform/authority is displeased with any aspect of the transaction
• No analytical tools provided - platform disinterested in participant success
• Personal data at risk
• Subject to outside hacking, MITM attacks

Bettium	.

• Users bet against each other, peer-to-peer — platform has no interest in participant failure
• Full transparency — pre-set fees, odds and terms set by platform participants
• Minimal fees — sliding scale with maximum 0.15% for winning bets, 0.1% for losing bets
• Smart contracts exclude possibility of non-payment and/or fraud
• No withdrawal limits, no minimum deposit requirement
• Bet limit determined by match pool formed by other users
• Instantaneous transactions
• High performance welcomed — no reason to blacklist successful participants
• No such potential - immediate and undisputed payout based on srnart contracts
• Full range of analytical tools, Big Data, Al, expert forecasts — platform has no interest in participant failure
• Personal data protected by anonymity of the blockchain
• Decentralization excludes outside hacking, Ml TM attacks

Main Features

Bettium incorporates both the positive features of current systems and fundamentally new/ innovative services not available in centralized solutions.
These include:

1. Peer-to-Peer bets. Bettium's primary function is to provide a decentralized platform for P2P bets between individual users. With no betting limits and odds defined by the users themselves, the terms of a Bettium P2P wager can be significantly more attractive than those provided by centralized solutions. This model excludes the third party (bookmaker), who is disinterested in the player's success.
2. Access to Big Data. Bettium provides the user with detailed information on all aspects of thousands of sporting and E-Sport events throughout the world. Users will have access to a comprehensive database relating to any event of interest, compiled using Big Data techniques. Parameters may include history, team stats, player profiles, strengths, performance under certain conditions, effects of injuries, likelihood of penalties, and literally thousands of other factors that could impact the outcome of a match. Bettors can evaluate such information autonomously or rely on analysis by industry experts.
3. Algorithmic betting. Bettium enables users to execute betting strategies automatically with the use of built-in algorithmic tools that can easily be customized to the user's needs and preferences.
4. API. Bettium will provide an Application Programming Interface (API) allowing developers to write code and create extensions/apps based on the functionality of the platform. These may involve integration of existing betting solutions or creation of new ones, such as bots, Al advisors, or innovative betting algorithms. Interested developers will use the API to create, modify, and share/sell their own Bettium-based solutions in the marketplace.
5. Artificial Intelligence (Merlin). Bettium features a unique built-in Al assistant called "Merlin" that can predict outcomes based on Big Data analysis and present information in a clear and understandable way. With Merlin's help, users will build and test their own betting strategies, using Al to predict outcomes in an automated format. Specifics of this feature include:

• Accessibility. Unlike humans, Merlin works 24/7, continuously mining data and analyzing it in real time. Merlin will "learn" continuously, improving efficiency and accuracy over time. The feature can also be used in offline mode to perform pre-assigned tasks and/or refine analytical reports.
• Automation. Merlin can interact autonomously with the betting platform, meaning users can instruct Merlin to place pre-assigned bets on their behalf based on custom triggers, conditions, and specific budgets. Merlin thus acts independently on the bettor's behalf in real time, based on analysis of up-to-the-minute data gleaned from an ongoing event and/or development.
• Customizable bots and API integration. Advanced users will be able to integrate Merlin with bots and utilize the API to develop specific automation strategies. Users will have the ability to "teach" Merlin independently, using their own data, weights, preferences, and ratios.

1. Expert forecasting. Bettium provides access to the statistics and forecasts of experienced experts, through subscription. Bettors can use the platform to assess the accuracy of experts/analysts and to mimic their bets automatically with a pre-defined amount or portion of account funds.
2. Amateur forecasting. Bettium users can not only study and mimic the behavior of others, they can also freely share their own actions and histories with peers, friends, or a community of subscribers. With time some users will develop the experience necessary to claim "expert" status themselves and sell access to their own analytical tools and forecasts. Paying subscribers of these home-grown experts may choose to mimic their bets regularly with a fixed amount or fixed portion of account funds, just as with established experts. Such users become "fund managers" of a sort, administering a fund of other bettors' money on a fixed-term basis through fixed-term agreements.
3. Trust Accounts. A similar feature is the Trust Account service, under which users may entrust their accounts, wholly or partially, to other users on transparent conditions and with the guarantee that funds will be used only for the purposes intended and in amounts expressly stated. The terms of such deals are regulated by smart contracts, protecting both sides from the risk of fraud or non-performance.
4. Tournaments. The platform will organize and sponsor tournaments where accomplished users can compete in bets with each other around prominent sporting events. This creates a "dual reward" scenario, as bettors can win compensation based on the outcome of their specific bets as well as the outcome of the betting tournament itself. Bettium will host both online and offline tournaments (i.e. "real" tournaments with players competing at a specific time/place), as described below.
5. l League. There will also be an "Al League", in which professional users will compete to forecast outcomes with their own Al-solutions using self-designed algorithms, neural networks and Big Data. In addition to prize money, tournament winners will receive positive publicity, enhancing their standing in the expert community and the perceived value of their forecasts.
6. Hyber. "Hyber" refers to a parallel test network on which developers may experiment with Bettium functionality, altering basic parameters of the system to gauge the outcome without affecting the integrity or functionality of the live system. Hyber will allow testing of smart contracts, alternative algorithms and any other basic system modification, including by Bettium's own in-house team.
7. ross-platform client (iOS, Android, Desktop, Web). Bettium will be compatible with all major UI platforms.

Features — More Detail

Betting Tournaments

As described above, Bettium will not only provide an analytical platform for bettors, but also promote betting as a sport in and of itself, through organization of betting tournaments. Unlike classical betting, in which participants pay commission to both a financial intermediary (bank) and the platform, in this model only the platform will earn a commission. Bettium will thus retain full control over the proceeds, which will be distributed as follows:

• 50% - organization of upcoming betting tournaments. These funds will be committed to support specific betting teams around the world, or to overhead and/or organizational expenses of future
• 40% - development of the Bettium platform. These funds will cover marketing, development, prize money, and other expenses of the current tournament.
• *10% - charity. Betting is a form of entertainment, but it should be done in a socially responsible manner. Bettium intends to commit 10% of tournament revenues to socially significant projects based on blockchain technology, many of which will come online in 2018 and 2019.

While these shares may vary based on economic factors, Bettium will remain committed to the expansion of betting as a sport, as well as to socially responsible causes.

Prize money will be paid in BETT tokens, which are not subject to the same restrictions as fiat currency. This practice will relieve organizers and teams from some of the financial and regulatory requirements associated with other jurisdictions, while use of the blockchain will ensure complete transparency of calculations and reliability of payouts.
The first tournament is planned for early 2019 with a prize pool of approximately $1 million in BETT Tokens at the prevailing exchange
rate. The second tournament is expected to follow 3-4 months later.

Offline Tournaments

In addition to organizing online tournaments, Bettium will enter into partnership agreements with third-party organizers of offline tournaments, i.e. real-life competitions staged at a particular time and place with well-known E-sport teams and participants.

Tournament winners will receive prize money in both fiat currency and tokens, financed by sponsorships, marketing commitments, sale of media rights, platform contributions, and pay-per-view revenue. Typically in E-sport competitions a base prize pool is funded by the first three revenue streams, with additional prize money accruing from viewing revenue, the amount of which is determined during the event itself.

The International, the largest Dota 2 tournament and E-sport competition, demonstrated that pay-per-view revenue can exceed the initial prize pool many times over.

One component of the marketing strategy will involve endorsements/placements with E-Sport players and teams. Display of the Bettium logo during competition or on social resource platforms will be rewarded with a percentage of the bet revenue accruing from events in which the logo is displayed.

Trust Accounts

One unique feature of the Bettium platform is the ability to entrust tokens to expert "fund managers" through an adaptable system of Trust Accounts. Users can create Trust Accounts to be administered by a fund manager (or several managers through a multi-signature system) based on terms agreed between the owner and the manager(s). These will include:
• Amounts to be committed and contribution schedule
• Bet amounts or limits (minimum, maximum)
• Category of bets permitted (i.e. sport, E-Sport, specific match or event)
• Distribution of fees and revenues between the owner and manager(s)
• Management period (generally limited, but extendable)
• Creator's cryptographic signature

Smart contracts will allow managers to bet using account funds, but not transfer or withdraw proceeds. Contracts will include a close-out clause allowing the owner to terminate the trust relationship at any time (or as per agreement) with immediate payout of all proceeds due to each party.

Trust Account owners will exercise full control and oversight through the Bettium platform, which will provide access to a summary of bets and results, opportunities to deposit/withdraw tokens, and termination of the trust relationship.

FINANCIAL MODEL

Project Monetization<h3

Revenue will accrue to the project from at least six distinct sources, each of which is discussed below:
• Betting fees
• Fund management fees
• Paid subscriptions
• Commissions from tournaments and virtual leagues
• Expert analysis fees
• Pay-per-View fees

Betting Fees

The Bettium commission structure is graduated, reflecting the size of the underlying bet. It also incorporates an innovative two-tier system, allowing unsuccessful bettors to pay lower commissions:
Bet Amount - Lower Threshold | Winning Bet| Losing Bet
--------|--------|--------
$0.00 | 0.15% | 0.10%
$10.000| 0.14% |0.10%
900.000 |0.13% |0.10%
$500.000 |0.12% |0.10%
$1.ooo.ooo |0.10% |0.09/0
$10.000.ooo |0.05% |0.03%
$100.ooo.ooo |0.025% |0.025%

Al League bets will be subject to a low base commission of 0.05%, with further discounts available based on rating and activity of the user.

Fund Management Fees

As discussed above, users may manage the funds of other users through Trust Accounts. For hosting this service, the platform will charge a flat fee of 0.05% of account value. Commission will be payable on the day funds are made available for management and every 12 months thereafter, to be adjusted based on account value at time of assessment.

Paid Subscriptions and Services

The platform will feature paid functionality available through subscription plans. Subscription packages may include some or all of the following:
• Automated bid functionality
• Al assistance and the ability to integrate Al into automated strategies
• Broadcasts of paid sporting events
• Participation in Al League tournaments

For individuals, the subscription fees will depend on rating, turnover and contribution to the platform. On average fees will amount to:

• $25/month (equivalent in BETT tokens) for newcomers without no rating assigned
• $10/month (equivalent in BETT tokens) for rated users with turnover in excess of $10,000
• Free for VIP users (+0.01% of amounts bet)

Subscription fees for legal entities will start at $100/month (equivalent in BETT tokens).

Tournament and Al League Commissions

Fees will depend on the total prize pool and pay-per-view revenue. Typical tournament commissions will range from 3% to 10% per event

Forecasting Fees

Any user with more than 30 bets and a success rate of at least 51% may claim "expert" status and offer to sell services to the marketplace. These might include forecasts for specific events or a subscription to regular reports on the expert's bets. The cost of such services will be determined by the seller. Experts will be rewarded by the platform with token bonuses for successful forecasts.

Subscribers can read forecasts, view historical summaries/statistics on the expert's bets, and/or set up a betting algorithm to copy the expert's bets automatically. Experts and users will both pay commissions to the platform as follows:

Expert commissions:

• 3-5% for each forecast for which the expert received revenue. The exact commission will be progressive, depending on the amount charged by the expert.

• The higher the rating and more successful the expert, the lower the commission. Fees decrease by 0.5% for every additional 15% success ratio above the entry level of 51%.
  

User commissions:

• 0.025% of each successful bet placed based on a forecast.
• An additional 0.01% will be charged for copied bets or automatic bets placed by subscription.

Pay-per-View Fees

Users will pay fees to watch live-streaming events. No fee will be charged if the feed is available online free of charge or if the user has purchased a paid subscription. Users with high ratings and turnover will be offered discounts.

BETT Token Economics

The BETT token serves multiple purposes on the Bettium platform. Firstly it functions as the primary betting currency; secondly it serves as the means of payment for services and subscriptions marketed on the platform. Collecting fees in BETT tokens will increase the robustness of the platform and provide for a stable tokenomics model. Tokens will also be used to form prize pools in tournaments organized or sponsored by Bettium.

The BETT token provides a number of incentives for investors:

• Online betting is a promising market that continues to develop at a rapid pace due to geographical expansion (Asia and Africa) and new betting markets (E-Sports).
• Bettium is a real, functional product that will be ready for rollout in a matter of months. Unlike many other projects heavily dependent on speculation, Bettium offers a token in which the blockchain serves a practical purpose, i.e. the token has true utility, catering directly to the needs of Bettium users.
• The BETT token has practical value. The growth of many other tokens is fueled by PR/marketing campaigns and speculation, leading to the infamous "pump & dump" model that can destroy token value early on. Bettium has integrated real technological value into the BETT token, endowing it with multiple functionality, to mitigate the volatility typical of the cryptocurrency market and improve long-term prospects for token holders. BETT tokens have and will always have practical utility within the framework of the platform. This approach will help to ensure sustained liquidity and demand.

Token Distribution Scheme

**Total token Emission: **
1 000 000 BETT tokens

ICO Fundraising Targets:
Hard Cap: 30 000 000 USD
Soft cap: 7 500 000 USD

Token Price:
1 BETT = 0.05 USD

Token specifications: ERC20
Payment methods accepted: BTC, ETH

20% of the total tokens minted will be distributed among project founders and team members, 3% to advisors, 15% to a reserve fund and 2% to a bounty rewards program.
7.5% of tokens will be sold during the private round. Another 7.5% will be sold at pre-sale for whitelisted users. 5% of tokens will used in bonus and referral campaigns and, if not sold in the ICO, allocated to the reserve fund.
The remaining 40% of the tokens will be sold at crowdsale, i.e. during the public ICO.

Fund Allocation

Funds raised during the ICO will be spent as follows:

P2P Betting Platform

Bettium will enable users to engage in the following types of P2P betting:
• Public matchpool
• Player-to -Player
• User-created Player-to-Player wagers

Since betting occurs over an extended time period and outcomes become known significantly later than the bets themselves, an indisputable method for confirmation of results is required. Bettium confirms transactions through a decentralized consensus Oracle Network on a system of master nodes.

First, there must be a matching of opposite interests in events based on several parameters, such as the amount bet, possible outcome, time, etc. Upon completion of an event the validator (Oracle Network) sends out a message signed through a multi-sig smart contract. The message contains the true outcome of the event, triggering all required calculations and payouts to participants betting on the event.

The system consists of two event validation circuits:

• Master nodes working on a distributed network to confirm and execute transactions (bets) based on Proof-of Stake consensus.
• An Oracle Network to validate the outcomes of events. This network consists of independent distributed blocks, thereby ensuring the proper level of reliability, security and scalability of the core network.

Public Matchpool

The principle used to match up players betting on a particular event is similar to that used on a financial exchange. The methodology involves sorting matrices and a formula to calculate winnings based on the probability of all possible outcomes.
A base commission is charged to each player as per the commission structure outlined in Point 3.1. But there is an additional calculation based on other potential outcomes, as per the example below:

Example:
Imagine an event M with 3 different outcomes VI (Team 1 wins), V2 (Team 2 wins) and V3 (draw). Ordinarily, when two players bet on VI or V2 and a draw occurs, both would lose their bet, since the predicted outcomes failed to occur. Bettium, however, is not a bookmaker profiting from the losses of its clients, and there is no need for the platform to retain all of both players' bets. In this example, the players will have % of the wager amounts returned to them, with the remaining 1/3 compensating the master nodes and Oracle Network (in a 3:1 ratio) that were utilized to verify the event's outcome.

Public Matchpool - Fig. 1

Player-to-Player

In this mode users can sort and search for opponents based on specific criteria, such as event, bet amount, outcome, specific conditions, or any combination of the above. Each criteria match is sent to the Oracle Network for verification and execution. Tokens are retained in a smart contract and, after confirmation of the criteria match, a transaction is created by the masternode system.

The loyalty model for bets with no winner applies here as well. When two bettors both lose, each will forfeit only 1/3 of their respective bets, that amount being used to compensate the Oracle Network and master nodes. If one player clearly wins the bet, standard fees will apply as per the published commission matrix.

Player-to-Player Betting - Fig. 2

Player-to-Player Custom Wagers
In this mode users do not simply choose an event with a predefined set of outcomes, they create events, propose any number of winning and losing conditions and set the rules and conditions (e.g. min/ max bet amount) themselves. This mode enables players to add conditions to a bet on-the-fly with the opposite party accepting or declining them. Bets will acquire more than two simple opposed outcomes, potentially encompassing an entire range of non-conflicting conditions, each of which may influence the final payout.
This mode will be introduced later in the platform's life cycle, when additional processing and validating resources become available, specifically those that facilitate manual outcome verification. This will be necessary to correctly process the large number of conditions that may be applied to a custom bet, potentially giving rise to complex payout calculations. Ordinarily one player will still end up winning the bet and another losing, but when there is no winner, the loyalty program will be used to refund up to 3/5 of the amounts bet, with the remainder going to oracles and master nodes.

Player-to-Player Betting - Fig. 3

Oracle Network

This system will consist of three core components jointly responsible for verification of event outcomes. Each component will reach a conclusion, uniquely sign the result, and send it for execution via smart contract, ensuring transparent and timely payouts:

• API & Algorithms
• Decentralized Oracle Network (network of independent oracles)
• Parsing (Parsing of websites and open sources)

The task of each component is to verify the event with a margin of error of 5% or less, that is, confirm the outcome with a certainty of at least 95%. Mathematically the average certainty can be expressed as co = ((XI + X2 + / 3, where XI, are the values given by each component. Once 95% of all oracles have reached consensus on the accuracy of an outcome, all incorrect and fraudulent outcomes are discarded, leaving only the accurate ones to sign and confirm the result. Each group possesses an accuracy rating which improves or declines based on the accuracy of the verification and is taken into account when signing. There is also a personal rating for each oracle that affects the weight of its conclusions when confirming outcomes. Accurate oracles receive additional rewards and bonuses.

The rating model also punishes inaccurate or fraudulent oracles by excluding them from the network (blacklisting) after a certain number of attempts to sign incorrect outcomes. To be removed from the blacklist, a certain time period must elapse during which the oracle must have significantly improved its rating. Oracles are also penalized for incorrect conclusions by losing a portion of their locked-up tokens. If a verifier manages to emerge from the blacklist, the cost of participation and token lock-up period will still be less favorable for that oracle than for others.

Scalability

It is not difficult to scale the infrastructure and increase system throughput given the current network architecture: master nodes working through POS consensus, an Oracle Network verifying transactions, and flexible smart contracts with verification and execution in clearly-defined phases.

The number of master nodes and oracles will be limited to the number necessary for efficient operation of the network. New master nodes and oracles will be deployed only when required by the platform, on a first-come, first-served basis. An excess of master nodes results in an excess of commissions paid with no corresponding improvement in throughput. Excess commission tokens, stored in the cold wallets of node owners, are essentially removed from circulation, potentially for a prolonged period, which upsets the balance of live tokens for gaming to frozen ones.

In the initial stages, the platform will avoid implementing such restrictions, unless activity levels in betting and token turnover significantly surpass expectations. The Bettium network will periodically be synchronized with the main Ethereum blockchain.

Algorithmic Betting<h3

Bettium will be the best solution for amateur bettors interested in automating their betting strategies. Algorithmic betting will be supported by the following tools:

• API for development of algorithms and bots to automatically execute them (and UI for automated queries)
• Integration tools for third-party applications Access to open and closed data
• Full access to betting functionality for bots
• Ability to adjust parameters for bot-executed operations.
  Additional tools will be provided for professionals engaged in algorithmic betting, such as graphs, exchange order books, detailed order statistics, current information on open orders, etc. A special professional interface will be provided similar to that used by brokers on financial exchanges with event-specific forecasts, real-time updates of bet volumes on major events, and other similar features.

Big Data

To allow for constant improvement/learning of the Al Merlin module, Bettium will continuously collect, process and cluster large chunks of data that will often be unstructured or weakly structured. This will be addressed with Hadoop/Spark, an open source framework with the following characteristics:

• Reliability
• Scalability
• Optimal information storage costs
• A large number of additional open source software components for data processing in Hadoop/Spark, Hive and others
• A large number of available support specialists
  At the launch of the platform, we plan to process, cluster and "teach" Al Merlin using data from the following sports and leagues:
• Basketball — NBA, NCAA Men's, Eurol_eague
• Baseball — MLB, NCAA Baseball, World Series of Baseball
• Hockey — NHL, KHL, AHL
• American Football - NFL, NCAAF
• Football (Soccer) - FIFA, UEFA, COFEDCUP, EPL, MLS, ECO, ECT, FACUP
• Rugby - NRC, RFL, EPSHIP, TRC, RWC
• Cricket - ICC, CWC, INTC
• Golf - PGA, ETOUR, RYDRCUP Tennis - ATR DAVISC, ITF, CST
• Mixed Martial Arts — UFC, BEL
  Boxing — International
  Olympics — Winter, Summer Sport Leagues supported by Peerless Direct Chain betting
• Horse Racing — International
• Motor Sports - NASCAR, FORMULA 1, INDYCAR

E-Sport data will be gleaned from:

• LCL
• ESL Pro League Season 7+
  -- ESEA Premier Season 27+
• ESL AU & NZ Championships
• Esports Championship Series Season 5
• ESE-A Premier Season 27
• Dota 2 Asia Championship IVI
• 2018 LOL Champions Korea Spring
• ESL Quake