Gambling is becoming increasingly popular on the Internet. But when bold ideas develop into expansive realities, problems -- as you can imagine -- start to surface. One of them concerns the level of trust that is required among players, operators, and affiliates. These parties simply must trust each other because, technically speaking, there is no way to guarantee themselves protection from fraud.
For example, it happens when players have doubts about the pseudo-random number generator. This is a special mathematical algorithm that determines which card will appear in the game or what symbols will pop up on the slot machine. In ordinary casinos, the host cannot affect this algorithm, because transparent honesty is needed to accommodate the demands of public services. In an online casino, however, unscrupulous operators have more room for manipulation and, predictably, this danger has raised a lot of red flags.
People have come to trust the classic "brick and mortar" gambling scenario and method, but it didn't happen overnight. In fact, it took a long time. Similarly, online gambling as it exists today is going through the same growing pains of development. And now, thanks to blockchain technology, online gambling can already boast of having a high standard of honesty. Because of this new level of trust, the online gambling market is rapidly growing -- which, according to experts, will reach $81.7 billion in 2022. Given its 2016 market valuation of $44.2 billion, this prediction anticipates annual growth at 10.8%.
What is the blockchain?
The history of the blockchain is connected with the most popular cryptocurrency: bitcoin. According to our reliable sources, the term appeared as the name of a fully replicated, distributed database implemented in the system of this cryptocurrency. In simple language, the blockchain is a decentralised database, consisting of separate blocks in the form of a continuous chain. The mathematical algorithms that underlie this technology make it impossible to falsify or delete information in such a database. Blockchain is a digital journal that can be programmed to record everything. Each block contains information about the previous block.
Blockchain technology is so easy to understand and so transparent and efficient that it can be used for virtually anything. And although the legal framework of the world as a whole does not yet allow for regulating the use of the blockchain in any meaningful way, individual countries, agencies and businesses have already started working with it. Because of its features, blockchain is perfect for online gambling.
What will using the blockchain in gambling provide?
Blockchain in gambling will give numerous advantages to all participants, and these beneficiaries can be divided into three main groups: the players, the operators of the online casino, and the affiliates.
You are a player
An online casino that uses blockchain technology inspires much more confidence than regular online casinos. Blockchain technology was originally conceived so that people even at a great distance from each other could trust the information they exchanged. Cryptography mechanisms implemented in the blockchain casino guarantee the player that the game session is being conducted according to certain rules which cannot be violated or revised unilaterally. Also a great advantage for players is the fact that blockchain casinos use cryptocurrencies and thus take on their big advantages of maximum privacy and security.
You are an online casino operator
What can casino operators expect from the technology of the blockchain? First of all, reducing costs. The most advanced examples of blockchain integration in gambling are complex ecosystems with their own Protocol and back-end. This ecosystem will allow the operator to reduce the cost of equipment, as most of the operations will be carried out in a decentralized external system. This saving isn’t the only benefit. Casino operators will also be able to earn more, and increase turnover and income by attracting a new audience -- holders of cryptocurrencies, who are becoming more and more numerous.
You are an affiliate
If you belong to the affiliates, then you are faced with two simple, but simultaneously complex issues: why should I attract traffic to blockchain-based casinos, and what are the guarantees of payments? The answer to the first question is actually connected to the second. In online casinos, affiliates are increasingly faced with the fact that payments for attracted traffic do not meet expectations. Hidden commissions, write-offs, and unfair accounting of attracted players -- all of this is not uncommon. Conversely, the blockchain gambling ecosystem is devoid of such drawbacks in principle, since all payments emanating from it are made automatically -- thanks to the blockchain. Special software mechanisms called “smart contracts” are responsible for this. In the blockchain ecosystem, everything is taken into account automatically -- without the participation or intervention of any person -- and so payments to all participants in the process occur in the same fashion. No fraud, no hidden agenda. What is more, there is no possibility to hide any conditions or to covertly register additions. YOU control the terms of smart contracts.
Issues and Challenges
Despite the fact that at first glance the implementation of the gambling business on the online blockchain solves all problems, new technologies naturally present initial difficulties. Here is no exception. First of all, the transition to new technologies and processes almost by definition present fresh challenges for the industry. These include such specifics as the irrevocability of smart contracts. There is no technical way to automatically recover assets that were sent under a smart contract, but there is still a good side to this feature as it offers greater protection to the player overall.
Blockchain gambling faces one other issue -- there is not a very large selection of games and game mechanics. Due to technical nuances, it is still very difficult to implement multiplayer gambling on the blockchain, although not impossible. All in all, however, the current issues surrounding blockchain gambling are temporary, and with the inevitable development of more sophisticated technology they will be solved in the near future.
What does DAObet (ex — DAO.Casino) offer?
Blockchain gambling is still a young industry. At such a green stage of development, it is important for the market to come up with a comprehensive solution that will cover all current needs and determine the path of further development. DAObet is developing an ecosystem that will serve as such a solution. Our ecosystem will provide casino operators with savings and additional revenues. Affiliates will benefit from transparency in calculations and stable earnings on attracted traffic, and players can enjoy a huge selection of quality games, transparency and full decentralization.
The very philosophy of the blockchain meets all the needs of gambling which, in the final analysis can be combined into one mission statement phrase: Fair Play. Fair Play in the most literal sense of the word. Most participants in the gambling business are fascinated and increasingly convinced by this technology because it guarantees the transparency of all processes, while the distribution of income between the parties will occur automatically and according to a set of rules known in advance. At the same time, blockchain will not only make the industry more honest and transparent, but also increase revenue due to a new audience of players, an ongoing reduction of costs, and by guaranteeing an overall optimization of businesses.
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