DAO.Casino on Blockchain Technology and Changing the Gambling Industry

Go back

Recently, DAO.Casino published a whitepaper detailing the use of blockchain to provide provable fairness in gambling. This would also remove the need to trust third parties when gambling, helping to overcome peoples mistrust of platforms – whether their concerns have been previously misguided or not. Blockchain has the potential to revolutionise the gambling industry and GamCrowd interviewed DAO.Casino to find out a bit more about the project and the teams views on the impact of blockchain on the gambling industry.

GamCrowd: Could you explain what the DAO.Casino is and what led to the decision to develop it?
DAO.Casino is a protocol that removes a need to trust a third party from entire value chain of gambling industry - from the games themselves (probably fair PRNG) to business relationships between gambling industry stakeholders - devs, referrers, casino operators etc. We saw two trends that lead us to start this project: online casinos interested in probably fair gambling on one hand and a growth of Ethereum based game projects, that require an ecosystem. We decided to build this ecosystem. We also took on a challenge to find methods to obtain equally unpredictable PRNG - and with that we received support in our research from the community.

GamCrowd: How will DAO.Casino change the gambling industry?
We envisage that it will change it on several levels. The most obvious one, and the one that online casino operators are interested in, is probably fair gambling can change online gambling reputation for better and bring new players on board.
Second one that is dear to us is related to cryptoeconomics. If people and businesses no longer have to trust each other in order to cooperate and enter business relationships as easy as we send emails to each other now star and like content on social media   it is a foundation for entirely new business models and new markets to emerge.
We can't predict what these business models would look like exactly, no one can, but this automation of trust would make it pretty amazing.

GamCrowd: What makes DAO.Casino different from other solutions?
We haven't seen any other solutions yet for automating trust in gambling industry value chain. We have seen a lot of experiments with games on Ethereum, we met with the teams, but weaver seen anyone doing what we're doing - protocol on top of Ethereum that covers gambling industry value chain. If you're aware of anyone else doing same thing, we would love to get in touch. Right now there's really no competitors - even if people do exact same thing it is still just bringing the paradigm shift in the industry closer.
Some of our teammates were experimenting with Ethereum and games in early 2015, it was fun but it was a bit too early for it to really become an industry. We think that now it's the right time.

GamCrowd: Of all the benefits of DAO.Casino, which one do you believe is the most important
On the social level the most important thing for us is that it is an open ecosystem that anyone can integrate and interact with.
We want to make it easier for traditional online gambling platform providers and game devs to benefit from blockchain based systems. On the technical level is PRNG method - we managed to implement an algorithm that is decentralised and yet provides equally unpredictable pseudo random numbers to the games in just a few seconds (3-4 sec). PRNG is dear to us because we put a hell lots of work in it and that is just a start. But system participants would probably find other must important things for them. The system is decentralised, and it is a soviet-technical cryptoeconomic system. Even as authors we can really envisage how it will evolve. We can just try our best to make it work and to make it secure. Also provide templates and libraries for the devs not yet familiar with Ethereum.

GamCrowd: What drew DAO.Casino to blockchain technology, and Ethereum in particular?
Our team members have been in the decentralised tech space for a while. Once you discover decentralised consensus systems you become hooked.  It’s just like witnessing a new kind of internet - a communication technology that will fundamentally change the way people interact.
Our devs started tinkering with smart contracts on Ethereum shortly after Ethereum WP came out. In early days people used to write contracts in LLL.
Many bitcoin enthusiasts were interested in protocols that extend bitcoin’s capabilities - allow to implement more sophisticated instruments. Everyone who was following bitcoin and blockchain tech knew that this won’t be just about p2p money transfers. At some point colored coins was a thing. Then Ethereum came about and it had a very sexy offer. It sounded super ambitious, but if you’d meet the core team and the dev community that was quickly growing around the project it was clear that these guys have a potential to actually pull it off. And they did.
Ethereum attracts very bright people, right now there are many teams who work on improving it.

GamCrowd: Can you describe the importance of smart contracts to companies?
Smart contract based systems will allow totally new types of companies to form, more agile, more flexible, and more suitable to the fast changing business environment.  Smart contracts don’t really replace legal contracts, but they make granular legal design and complex transaction agreements accessible to everyone. To set a legal system up in the conventional way takes hours of legal work, but in if people and businesses can enter and exit ‘contractual’ relationships as easy as they can send an email or join and leave a group on social media, that is very powerful.
We put contractual in quotation marks, because smart contracts are fundamentally different from legal contracts, however, these little scripts automating what is usually could be performed only with a third party in place is a foundation of new forms of human and business organisation that can provide all functions of a corporation in an open-collaboration fashion.
There is a form of organisation that is called an open value network - OVN. OVNs are not yet very popular, but with automation of trust open value networks have a potential to become more competitive than giant corporations. In traditional organization, the contributors are employees who need permission to produce use-value, whereas, in an OVN, the employer-employee control relationships do not exist. Instead, an OVN is open, that is, anyone can join and/or leave the network and/or form, join and/or foreclose an open-enterprise at any point.

GamCrowd: Can you explain, in layman’s terms, how RNG or PRNG can be achieved using a blockchain?
Good to hear that blockchain and PRNG are laymen terms. Existing PRNG (pseudo-random number generator) methods and the method we have implemented actually described in pretty simple terms in our WP. We tried to keep our whitepaper as simple as possible. In the latest method we have implemented pseudorandom is derived from data provided by the player and the bankroll backer. It works in a few seconds. There is an element of cryptoeconomics there, because it doesn’t make sense for these actors to cooperate in order to predict the PRNG and figure out the outcome of the game before the game contract does.
Actually, blockchain - a data structure doesn’t really matter much, let’s focus on what the blockchains do and what they provide. What the blockchain based system can offer for PRNG in the gambling context is provable fairness - provably equal unpredictability of the game’s outcome
If we’d to explain Ethereum in laymen’s terms it would be a giant computer that lives on the network and this runs programs that no one can modify. They run exactly like they have been programmed. It means that you can create applications that are fair by design.
All the randomness that comes from computer algorithms (not natural sources like nuclear decay) is called pseudorandomness. As long as the pseudorandomness is equally unpredictable for all parties you can derive your game outcomes from it, and it will be fair. But I can run my PRNG on my server and tell everyone that it is fair and you can trust me on that. What the blockchain system does is that this randomness becomes provably fair at all times.GamCrowd: What other benefits do you see blockchain bringing to gambling solutions?
DAO.Casino: New business models and more efficient forms of business and cooperation that blockchain based protocols can enable. Long term certification and due diligence can become easier, because smart contracts that run on a decentralised computer are tamperproof.

GamCrowd: Do you see blockchain technology disrupting or enhancing the gambling industry?
Isn’t it the same thing? If not then probably both. Did internet disrupted or enhanced human communication?

GamCrowd: In general, do you see the gambling industry positioned to leverage blockchain technology, or are companies not yet ready to implement it?
We have to make it easier for companies and people to adopt blockchain tech. Some online casino operators are very open to innovation, and the blockchain tech, even though they usually value integrity of data and code that Ethereum offers because they are interested in provably fair gambling. We think that this integrity of data and code that wasn’t possible before that allows automation of trust can offer much more than just provably fair gambling, but a provably fair business and, as we said, new forms of cooperation.

GamCrowd: What are the next steps for DAO.Casino?
On the technical side - short term releasing a standalone application that loads games that are stored in a decentralised way i.e. on Swarm. That’s a path to higher degree of decentralisation. We have released a standalone desktop app for bankroll backing already. Implementing yet another PRNG method for multiple players that is both decentralised and fast - that might require more long term research, but there has been a lot of pro-active people amongst Ethereum enthusiasts offering help. On the social / business level is to develop libraries and tools that would make sense for developers who are not yet Ethereum enthusiasts and to work with online casino operators, and make it easier for them to benefit from blockchain tech and automation of trust.

Together with traditional online casino operators, those who are ready to innovate, we are considering to form a consortium - for collaborative research and running pilots. We will publish more information about that after we have launched the MVP, because a line of working code worth more than a thousand words.