Over the past several years, cryptocurrencies and blockchain casinos have exploded into mainstream consciousness. Speculation of cryptocurrencies is rampant, and it seems that every month a new blockchain launches, promising to unseat the current kings of the industry.
This has led to almost a sole focus on the price of various tokens such as BTC and ETH. However, when the speculation fizzles out and reality returns, as it did in the 2001 dot com bubble, and as it will in this industry, some truly world-changing technology will emerge, and it will have a big impact on online gambling. Leo Twin from casino portal gamblerspro.com shared his thoughts on the matter with us.
Self-Custody of Funds
Casino operators, affiliates, and players will know that one of the largest pain points in the industry is deposits and payouts. Some players are hesitant to deposit to new brands, and there’s almost always friction when it comes to payouts.
Because some cryptocurrencies make lightning-fast micropayments possible, it’s possible for players to keep custody of their funds in their wallets and for bets to be settled on a per-bet basis. An example of this is Peer Game on the BSV blockchain. With fees of $0.00001 on average, players can make bets of any size and pay the fee on every bet, with settlement occurring in real-time.
Self-custody of funds has the potential to revolutionize the industry. It would eliminate rogue operators who steal funds and could reduce overheads for casinos and gaming operators. It would mean goodbye to 24-48 hour payouts and the very concept of minimum deposits and withdrawals, with each bet being paid on the spot instead.
Provably Fair Games
Provably Fair casino games are already available at some online casinos. However, with the widespread adoption of scalable blockchain technology, they can become the norm.
Using a blockchain-related technology called hashing, Provably Fair games allow players to generate a random seed number and feed it into the game algorithm between spins, hands, or rolls of the dice.
The ability to insert your own random number into the mix means the casino operator does not have control of the game outcome and, therefore, can’t rig the games. This is amplified by the fact that each wager could have a time-stamped entry on the blockchain, allowing for auditing of game payouts by external third parties. Since there’s no way to change on-chain data without the majority consensus of all nodes, manipulating the data is impossible, and any shenanigans would almost certainly be detected.
Compliance & Regulations
One of the most misunderstood elements of blockchain technology is what it means for data management. Essentially, a public blockchain is a massive decentralized database that can’t be easily altered or manipulated.
This could make compliance with regulations much easier. If a regulator comes along and asks for data proving an operator is taking measures to prevent problem gambling, it can all be pulled from the blockchain with time-stamped proof of the measures taken.
Whereas these days, operators are relying on fragmented databases, data is often lost or stored in email attachments or on old servers; if all of the data is available on a public blockchain, it makes the lives of operators and regulators much easier. In time, with pattern-recognition AI and other machine learning tools, compliance violations can be detected and dealt with in real-time.
It’s Time to Embrace Blockchain Technology for Gaming
Just as the internet revolutionized the world, so too will blockchain technology. As the gaming industry was one of the first to embrace the world wide web, it should be among the first to embrace blockchain.
It’s time to look past the crazy valuations of tokens in the blockchain economy and focus on the disruptive technology at the heart of it. Everyone will be better off when this happens.