Quote from: DireWolfM14 on Today at 01:28:07 AM

Can you please elaborate more on this:

Quote from: joey.rich on April 11, 2020, 10:47:50 PM

When you bet you don’t send money to a trusted intermediary. Instead, bets are placed by sending coins to your own addresses so that you maintain control of the private keys for your bets.

How can you ensure the clients will pay-up on their losses?

To place a bet, you actually burn coins by sending them to one of your own burn addresses. When the outcome of the betting event is determined, winning bets are paid by the protocol creating new coins at the address associated with the betting transaction where you burned coins.

Quote from: DireWolfM14 on Today at 01:28:07 AM

And then later I read this:

Quote from: joey.rich on April 11, 2020, 10:47:50 PM

PolyCash is a platform for stablecoins and eSports betting will operate with coins pegged to the dollar. You can buy in and sell out at any time using bitcoin, but the bitcoins will be converted to dollars based on the exchange rate at the time of each transaction.

So, are the private keys mentioned previously for your own stable coin?

Stablecoin functionality is where some centralization comes in. Like Tether, the peg between in-game coins and dollars relies on people purchasing coins with dollars, and those dollars being held in escrow. Coin holders can sell out at any time by redeeming their in-game coins for dollars from the stablecoin issuer.

Unlike ICOs, the stablecoin issuer does not make money via seigniorage (printing money). The business model for a stablecoin issuer is more like that of a bookmaker. Players deposit money, bet, and then cash out.

It's possible for the stablecoin issuer to charge fees on bets without ever holding the private keys to any bets. This is done by setting the payout rate for betting events to below 100%. For example in the play money Rock Paper Scissors Fast game, the payout rate is set to 99.9% (fees of 0.10%). The amount of new coins created in the payout is slightly less than the coins burned by players in bets, causing the supply of coins to constantly reduce. The stablecoin issuer maintains the peg of 1 dollar per in-game coin, and therefore keeps these fees as their profit when the game ends since they owe less dollars to players than they originally took in.