The Blockchain Influence on Gambling
Blockchain is a fairly new technology, considering it’s only been around since 2008 when Bitcoin appeared. Yes, Bitcoin, the currency, is also a technology that has been developed like never seen before and being adopted, or considered, by every single industry in the planet, including the gambling industry.
The blockchain brought peer-to-peer transactions and smart-contracts, something that by itself created a number of possibilities for any industry. These are the key features from the technology that lead companies to trust their businesses to it.
Transactions and Smart-Contracts
Peer-to-peer transactions and smart-contracts have enabled any online casino using the blockchain to be decentralized. Being decentralized meaning effectively controlling their own business, as their site or platform doesn’t belong to any company, it’s a digital ledger that belongs to anyone using it. It’s their property.
This brings along privacy. Online casinos can issue and receive payments privately as they don’t depend on third parties like VISA or MasterCard to do it. No personal information from the players is required either, as a code and the account link is all it takes.
The privacy with payments is far from being all as, once again, not depending on third parties makes both deposits and withdrawals much faster. It’s not necessary to wait for the server of company A or B or another procedure, it’s just a matter of waiting for the blockchain to validate the transaction, which usually takes minutes.
In a world where millions are unbanked, it becomes obvious that the blockchain and cryptocurrencies give solutions to those people and, therefore, also increase the customer base for online casinos.
All of the above seems great, but in fact are just theories until someone put them in practice. Something that has been happening quite often given the number of existing blockchain casinos, as well as online gambling sites that have been adopting cryptocurrencies as payment methods.
Nothing like reading some testimonials from professionals from the gambling industry to know how they feel about the adoption of the blockchain technology.
Jan Sammut – BlockScope
BlockScope is a web development and marketing company, which is partner of RefToken, “The World’s First Decentralized Affiliate Platform” on Ethereum. Jan foresees a new era for the gambling industry, a more transparent one, especially in the B2B sector.
Still according to Jan, the concern from players of operators withholding payouts or cheating games will disappear, not to mention that the affiliate side of the business will also add audit-ability and transparency, which leads to believe that the B2B relationships will be the first to be impacted.
Sometimes there are tense relationships between operators and affiliates, as both sides have the financial motivation to cheat the other side. Operators can shave the sales numbers reported to the affiliates or withhold commission payments, while the affiliated can also run frauds on their numbers. This is a scenario where a blockchain smart-contract solution solves all these problems. A self-governing protocol would enforce the rules and automatically solve any conflicts.
In theory blockchain can disrupt all the industries, and in particular the online gambling industry, but learning the direct testimonies from people working directly in the area gives precious insight to the topic. Something we will continue covering on our next article.