With the continued growth of online gambling – which is currently estimated to take around 10% of total legal turnover in the global gambling business - there remains an issue associated with providing trustworthy platforms for users, developers and regulators to interact with.
In order to combat this issue, DAO.Casino provides a solution which utilises smart contracts and blockchain technology on the Ethereum network to provide provably fair gambling, and removes the need of trust between parties in online gambling. The system can provide a P2P marketplace for game developers and support independent front-end platforms where players can discover and play gambling games that are designed and shown to be fair.
Blockchain technology is used in various markets for the benefits of using distributed ledgers as opposed to a centralised system. It is instead a peer-to-peer decentralised platform, with no one authority in charge. Some advantages of the technology include transparency, immutability and security.
Some of the existing issues in the market of online gambling that the platform aims to solve include: risk of fraud on behalf of online casinos, the inability to check the result of the draw, high and hidden fees, a prohibitively high entry level for the game developers, high costs associated with running an online casino, and operations overheads such as integrating payment systems & user account balance management.
DAO.Casino, with its decentralized business model, creates a democratized gambling platform where everyone involved is recognised and rewarded for their contribution. It consists of an automated value distribution protocol, acting as an mechanism of incentives, alongside a system that is capable of providing equally unpredictable pseudorandom numbers for the games. By automating the value chain, it minimises human intervention and increases trust in the process.
Random Number Generation algorithms are key to ensuring fairness in online gambling platforms. DAO.Casino enables decentralization of PRNGs and will ensure compliance with the industry requirements in terms of speed. The platform also applies smart contracts to online gambling in game contracts with reward distribution logic and PNRG, referrer system, and an open bankroll backing system.
Besides proving fairness and removing the need to trust third parties, using blockchain and smart contracts can also minimise overheads for casino operators which allows for an increase in the payouts to the players and game developers to monetise their work. Auditability and cryptographic verifiability of Ethereum powered software will also potentially make the certification process for gambling games easier.
All other things being equal, once these benefits are realised, the lure of larger payouts and provably fair gaming will no doubt draw increasing numbers of users to a blockchain-based system. Existing online gambling will need to prepare for the disruption of their businesses, and traditional gambling providers may also need to be aware in case these advantages persuade those who were suspicious of the fairness of online casinos to give blockchain-based ones a try.