The world of cryptocurrencies and blockchain look set to force a revolution in the worlds of gambling and online gaming. Depending upon where you happen to be reading this, these sectors might also be known as igaming or egaming.
Why Is Blockchain Important In Online Gambling?
There are several elements of blockchain technology that have the power to revolutionise the online gambling world. They are:
Cryptography is the high level and usually unbreakable maths that makes a digital game or service secure. In the world of blockchain cryptographic security is being taken to a whole new level because it is used to secure currency. Could that technology be used to secure bets and gambling sites? Yes it can!
In most jurisdictions that issue licenses to gambling companies, players have to trust that the game is not rigged and that nobody will run off with the money. Company licenses and audits help to reassure us, but they are not the same as cryptographic security!
Immutability means that once a record or transaction is recorded onto a blockchain, it cannot be removed or altered. Thus, a result is a result and cannot be tampered with. This, when tied in with cryptographic security makes it much harder for a result to be compromised in any way. This helps build trust even more.
Smart contracts are ways of creating a digital contract that operates without human intervention. In gambling, for example, this might mean that funds are placed into a smart contract that pays out based on certain actions or results. Let’s imagine that this contract relates to the spin of a slot wheel and if a certain symbol shows, players win and if that symbol does not show, players lose. The smart contract knows to pay out funds automatically in certain ways and for certain results. As an operator or player, once the smart contract is in place, it will do as it has been programmed to do, pre-defined, based on the possible outcomes. This further helps a player to be able to trust in an operator.
Why Are Cryptocurrencies Important In Online Gambling
Cryptocurrencies offer one main benefit to players over a normal digital transaction that carried out through normal means, such as a credit or debit card. That benefit is privacy.
Some cryptos offer more privacy than others, but as a general rule, a wallet address is a long string of numbers and letters. These numbers do not list names, addresses, etc, which means that they are at worst psuedo anonymous. That level of privacy may be enough for a husband to place bets without his wife knowing, for example.
However, there are other possible benefits for a player. Depending upon their country of residence, it may not be legal to gamble and a cryptocurrency may make this form of entertainment possible. To be clear, it would still be illegal, but it is now possible. Some people are comfortable breaking the law in this way, others are not.
There may also be tax implications for any winnings. Cryptocurrency bets and payments obscure the situation. Once again, dodging the law like this may be illegal in specific jurisdictions, but some players are happy to take those risks.
What Makes dao.casino Special?
Until late 2018, virtually all online casinos that incorporated some level of cryptocurrency did so only to provide an additional possible payment channel to players. Even some of the big name properties with “Bit” in their brand name just accept crypto payments. This is a start, but it does not utilise the real power of blockchain technology to improve gambling.
dao.casino has been building a platform that enables the technology – the underlying algorithms and smart contracts – to regulate gambling, removing the worries that players may have about online gambling websites. They describe themselves as creating the Gambling 3.0 industry. For example, by using smart contracts, they are able to automate revenue distribution between all relevant parties in a transaction. Those parties might include the player, the casino operator, game development companies and marketing providers. It means that when a smart contract closes, revenue would automatically be sent, in the correct amounts and percentages, to the wallet of each party. This is a major step forwards for everyone in the gambling sector.