GPWA Times Magazine - Issue 41 - July 2018

to thousands of ledgers all over the world. That way, the record can’t be altered retroactively. If you change one record, it won’t match up with all of the other records of that transaction. Here’s the thing, though: Blockchain technology isn’t limited to payments. It can track almost anything. It can track amounts wagered by players. It can track what an affiliate’s commission is supposed to be. It can track the personal data and informa- tion of players. It can track the personal data and information of affiliates. It can track player behavior on a gaming site. And it does all of this securely. More importantly, blockchain technology can be used to create and enforce contracts (they’re called “smart contracts” in the blockchain world) and make payments. And because the blockchain tracks each piece of data as it enters the system, it can’t be tampered with or removed. The systemwould au- tomatically detect that. In the blockchain world, that’s called “immutable trust.” So how would this work in an online ca- sino environment? Here’s one way to look at it. A player signs up at a casino through an affiliate, and that transaction is instantly written into the block- chain. Now the whole world knows Player V at Casino X belongs to Y affiliate. Additionally, the contract between the affiliate and the operator/affiliate program also becomes part of the chain (or attached to the chain). So if you’re supposed to get 35%of the rev- enue, the chain knows that. Player X loses a $10 blackjack wager. That transaction is immediately written into the blockchain. Player X loses a $50 wager on roulette. Once again, that transaction is immediately written into the blockchain. Eventually, Player X loses $10,000 that first month. The blockchain smart contract knows that the affiliate is owed $3,500, so it initiates a payment. Because the payment is being settled using blockchain technology, settlement happens in a matter of minutes, or even seconds. The affiliate receives the payment and the cycle begins all over again. All of this happens without human intervention. It’s all writ- ten into the blockchain platform. And because this chain is on ledgers being stored throughout the world, it can’t be hacked or altered without someone discovering the changes. Other industries are already using blockchain technology to solve major problems. Global shipping conglomerates UPS and Maersk use it to track the global supply chain. The concept is that they should know where the goods are picked; whether they are authentic, in compliance with local and international laws and all accounted for; whether all appropriate taxes and duties have been paid; where the shipment is each step of the way; and whether the shipment has been tampered with or altered. If the global shipping industry can fig- ure out how to do all of this, surely the online gaming industry can figure it out as well. It’s going to take some time before this blockchain platform becomes a reality. Transaction times need to speed up and costs need to come down. But that’s just a matter of time. Major companies and researchers are working on scalability right now. The time frame on all of this is one or two years. Not decades. UPS is already conducting pilot tests. Blockchain technology is maturing, and affiliates need to push the online gaming industry to get on board. It might be the only way to restore trust to the system. It’s going to take some time before this blockchain platform becomes a reality ... It’s just a matter of time ... The time frame is one or two years. Not decades . Vin Narayanan has been involved in the gaming industry for over a decade and is the former editor-in-chief at the GPWA and Casino City Press. He is currently a gaming industry consultant who focuses on Asian operations; the publisher of the Blockchain Report, which covers block- chain technology; and the senior managing editor of Early Investing. He’s also the founder of a blockchain startup. 29 W W W . G P W A T I M E S . O R G