How Blockchain Will Bring a Distinctive Change to Gambling

Go back

With the introduction of blockchain technology to gambling, there can be seen a number of benefits which previously have not been possible through the development of innovations in the gambling industry such as online gambling and smartphone apps for gambling. Key amongst these new possibilities is the potential to offer an immutable, transparent platform, leading to a solution which can be provably fair and openly auditable.

Possibly one of the most significant barriers to a more widespread adoption of gambling platforms is the issue of trust that they come with. Players need to feel that they are playing fair games – not rigged in the house’s favour – and that if they win, their winnings will be distributed to them in a satisfactory time. It has been the case in the past that betting operators have reneged on payments for winning bets and regulators constantly have to assess whether casinos, both online and traditional, offer fair games. Alongside the bad publicity and potential fines that these issues can accrue for a company, it also reduces the trust that potential customers have in gambling. Online and smartphone betting platforms are beset by comments and reviews claiming the games are rigged or fixed in some manner.

By employing blockchain technology, these accusations and the negative effects they have could be avoided. Players would be able to check the randomness and fairness of any game they played and determine that it was above-board. The use of smart contracts on a blockchain would ensure that winnings were paid out automatically and could not be interfered with – some options possible would prevent the gambling platform from even having any control over the players funds at all in the event of a win for the player. Not only would the players benefit from this, but the operators and regulators would also enjoy benefits of reduced costs and less effort in monitoring games.

A good example of a start-up trying to achieve this improvement to gambling is DAO.Casino. DAO.Casino is a protocol that removes the need to trust a third party from the entire value chain of the gambling industry - from the games themselves, by providing probably fair pseudo-radom number generation, to business relationships between gambling industry stakeholders - developers, referrers, operators and others.

One of the features that DAO.Casino has included is bankroll backing, which is open to anyone with one of DAO’s tokens. A role usually undertaken by the casino operator, DAO.Casino will enable ordinary people to use an app and commit their tokens to a game contract, in order to receive rewards. This would also benefit game developers by giving them the flexibility to develop games of their choice, without having to be approved by a select number of operators.

With these benefits, along with others inherent to blockchain such as security, infinitely divisible currencies, and linked access to global financial services, it is likely that blockchain systems will facilitate the adoption of gambling platforms en masse to a much wider audience than they currently enjoy as the remaining reservations that the public have over its reputation and fairness will vanish. When that time comes, platforms not using blockchain technology are likely to be viewed with suspicion. After all, what reasons would a company have for not using transparent and provably fair technology if they have nothing to hide?