What Is dao.casino?

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.

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Book Review: The Crypto Intro By Nathan Rose

Published in June 2018, The Crypto Intro is a paperback and Kindle starter guide to the cryptocurrency space. Author Nathan Rose has written a very helpful guide that makes the very steep learning curve for beginners much easier to climb.

Your author’s own journey into the world of cryptocurrency began in 2014 and there was very little readable information online at that time for a beginner. Then, everything was written by developers for developers. As someone with no technical or engineering background, understanding cryptocurrency took me a very long time. Luckily, The Crypto Intro shortens that path for you massively.

The Crypto Intro covers all the basics that are needed to competently get started. After reading this concise book, you will be much more familiar with terms like blockchain, mining, wallets, exchanges and halvings, which ought to be enough to get any lay person started with their first purchase. Cryptocurrencies are a fast moving asset class with lots of developments, so this book will not make the reader an expert, no book could, but it will hold the hand far enough to make a first $20 purchase and get started.

Related Articles

Malta vs Isle Of Man On The Blockchain

Is Malta The Blockchain Island?

Malta Blockchain Summit 2018

Rose has written previously about other types of new crowd based finance and so clearly knows the spaces well. He draws on this experience to help walk newcomers to crypto by the hand to their first purchase. If you are just starting your journey onto the blockchain, this book is a very practical and hands on place to begin. Good luck!

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Malta vs Isle of Man on the Blockchain

This week your author had one of those very odd conversations about cryptocurrency and blockchain. I happen to consider myself something of an expert in the space, to a degree. However, I was stunned by some new information.

While writing about the growing scene in Malta as it positions itself as The Blockchain Island I learned that we might have been here before once already. It turns out that a few years ago the Isle of Man, a small country that is part of the British Isles and sits between the UK and Ireland, launched an effort to attract crypto start-ups. Who knew…?

I found this out and then by an unusual coincidence found myself talking to the first ever Manx citizen that I have met. I duly asked the young lady about the crypto ecosystem in IoM. She literally replied, “The what?”

Despite the Isle of Man being a very small place and my new friend living there her whole life, she had never heard of a crypto company located there. To help me out and satisfy her own curiosity, she called a friend that works in corporate consulting on the island to find out more.

It turns out that the IoM did pass legislation to make oversight and a legal framework possible. However, businesses in the crypto world have a very real and pressing need for fiat banking relationships. The conservative bankers of the Isle of Man decided that they didn’t much like these start-ups and made it incredibly difficult to open normal company bank accounts. The cryptocurrency companies left town to greener pastures.

Will The Blockchain Island Fail?

This sounds very similar to the situation that Malta finds itself in. Malta’s largest home-grown bank, the Bank of Valletta put a ban in place in late 2017 that stopped account holders from conducting any transactions with crypto exchanges. At their May 2018 AGM the bank said that it was “dealing with it“, despite the ban remaining in place. BOV’s largest shareholder is the Maltese government. Consider that the ban is for normal consumers buying and selling. Businesses that will have much more complex requirements have no chance.

The crypto and blockchain spaces move quickly. Blockchain years are a little like dog years – they are about seven to one. If the Maltese infrastructure cannot be put in place quickly, it is very likely that the ICO start-ups and exchanges will move on to other jurisdictions. Malta needs to move fast.

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Is Malta The Blockchain Island?

Since passing crypto related legislation in the summer of 2018, the EU’s smallest member state Malta has been actively promoting itself as “The Blockchain Island”. Is this real, or just hype?

After some significant research it seems that for now at least, the reality is somewhere in the middle. Malta is growing into it.

Delta Summit vs Malta Blockchain Summit 2018

In October 2018 Malta hosted Delta Summit and then in November 2018 the Malta Blockchain Summit. Slightly oddly for two conferences so close together in the calendar, they both used the same hotel as their venue. Both conferences had a wide mix of businesses displaying, though the MBS seemed to have an edge in terms of the overall quality of these companies. It felt as though they mostly had exchanges with stands, but at this stage in the development of the crypto world, exchanges are probably the right companies to have. However, in their defence, the Delta Summit had Binance and Roger Ver in attendance, so you can’t fault their ability to attract the best.

There are more and more companies investigating Malta as the location for their start-up or ICO and there is enthusiasm in the air. Corporate services firms, accountants, auditors, real estate agencies recruitment agents and hoteliers would seem to be the early beneficiaries of this enthusiasm as more and more founders visit Malta to look around and understand what is possible. For now, the local companies are talking a good game, but the ability of Malta to deliver in such a fast moving space is likely to be a real constraint in time.

This screenshot taken from a Maltese facebook group demonstrates the kinds of problems that people in the blockchain space are currently experiencing. While Malta is blowing it’s trumpet loudly, the reality is that it is not easy to integrate something so new into an existing economy. For political reasons, the Maltese banking system is already under pressure and bringing crypto projects and the potential risks they bring to Malta will not be easy.

The igaming sector, which is one of the biggest pillars of the Maltese economy has had it’s own growing pains and similar issues, yet is much more established locally. If igaming still has banking and licensing issues, how easy will it be for blockchain businesses to establish themselves?

iGaming Jobs vs Blockchain Jobs In Malta

The complexity of blockchain projects does not help this situation either. There is an incredible required learning curve in the crypto space and having spoken to a number of people at both events, it is clear that most of the professionals in Malta do not understand the subject well. This will hopefully improve in time, but time is the one thing that blockchain projects do not have much of.

The Competition For Real Estate In Malta

Another potential problem is that while igaming has created it’s own ecosystem in towns like St Julians, Sliema, Msida and Gzira, to be able to survive and recruit, the blockchain businesses will need to do the same. There is already an incredible shortage of commercial and residential real estate to rent, with prices rising quickly each year, plus a never ending difficulty to recruit and retain skilled, competent and experienced staff for igaming jobs in Malta. The arrival of blockchain will only add more pressure to these problems.

Overall, it is easy to imagine that several years from now Malta will be a warm, welcoming and hospitable location for blockchain and cryptocurrency projects. Malta certainly wants to be that. Between now and then, there will need to be a lot of work done by a lot of people to develop the skills and knowledge needed to make it a reality. Let’s hope they can do it.

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Malta Blockchain Summit 2018

1st and 2nd November 2018 were the dates of the first Malta Blockchain Summit, hosted in St Julians Malta. As Malta pushes hard in 2018 to live up to it’s self-appointed moniker of “The Blockchain Island”, events such as this are a must have.

I personally enjoyed large parts of the event, met and chatted with a number of interesting and experienced people and sat in to watch a few panel events. The Intercontinental Hotel was a good location, though on day one it really was busy, suggesting the level of interest in the space is very high.

Several of the event keynote speeches were from leading Maltese politicians, including the Prime Minister. Each was essentially giving a pitch as to why Malta is a “successful and vibrant economy that is open for business”. They know their lines and stuck to them.

In terms of stands, there were a lot of cryptocurrency exchanges present. The expansion of the exchange market provides greater liquidity and decentralisation – two things that crypto really needs. There were also a lot – perhaps eight – businesses that are offering blockchain solutions to the identification and KYC parts of the sector. Not long ago CIVIC launched to great fanfare into the ID space but it seems to be becoming a crowded market already. It is difficult to imagine that all of these projects can survive.

As is now de rigeur for these events, Malta Blockchain Summit hosted both an ICO pitch competition and a hackathon. Does anything ever really come from these things…?

The downside of an event like this is that there are a lot of attendees and businesses being represented that have no real place there. For example, there were a number of Maltese real estate agencies with stands. I understand why they would want to be there, touting for business from businesses that might need office space, but really, who cares…? We all know how to locate a real estate agent. Do we need them at a specialised event like this? In the same vein, there were many Maltese law firms and corporate services companies in attendance. I spoke with several people and only one of them had any actual experience in company formation for a crypto venture. Once again, I realise why they would want to attend and to try and find some new customers, but if they don’t yet know what they are doing, they ought not to be attending in my view.

All in all, the event was well located, hosted, organised and lays down a marker for the blockchain space that Malta wants to be a real player and build a real ecosystem. Time will tell how the market reacts.

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