GPWA Times Magazine - Issue 47 - July 2020

t this point, most everyone has heard of the terms “blockchain” and “cryptocurrency.” In fact, the overall understanding around the basics is growing, and not just in the iGaming industry. Bitcoin, of course, is the most wide- ly known, but the lesser revealed applications of block- chain technology are truly remarkable. So, let’s delve a little deeper into blockchains, and why it’s not only ben- eficial to operators and players, but to affiliates, as well. There has been no shortage of blockchain-based startups over the past two to three years. People realized relatively quickly that the utility of such a “network” was near limitless. For example, if you were to name an industry, I can with almost certainty guarantee that there are a number of blockchain-based companies (start- ups, or not) that are working on solving friction points within it. It hasn’t always been smooth sailing for companies within the blockchain industry. In fact, blockchain has earned a bad reputation over the years, including a 2017 study that claimed 80%of Initial CoinOfferings (ICO) were scams. An ICO is basically akin to that of a seed round funding within startups, mixed with aspects of Initial Public Offerings (IPO). Funds are raised by offering the cryptocurrency token at a reduced rate, and is often based on speculation. The gambling sector isn’t immune to this. In fact, there have been budding operators that have claimed to have technology that fizzled out with no product ever being released. Further- more, there are companies that operate outside of legal jurisdictions. However, I believe that the future success of block- chain gaming rests heavily on operating within regu- lated markets. Operators foregoing the basic require- ments of land-based and traditional online gaming establishments do nothing to help the progression of the industry as a whole. But what does iGaming look like in a regulated blockchain environment? By factoring in the basic nature of its decentralized infrastruc- ture, blockchain allows us to take away the need for trust. By being an irrefutable and transparent ledger, the levels of visibility and auditability open the doors to completely trans- parent transactions. “Completely transparent?” I hear you ask. Well, think of it this way: With traditional casinos there is no visibility with the games you’re playing. You load up a slot, or table game and you play. But do you really know the outcome isn’t rigged? A 2019 survey conducted by The Gambling Commission in the U.K. recorded negative sentiment towards the fairness of online gambling, finding that only 29% of players believed “gambling is fair and can be trusted.” That’s a shockingly low percentage by any means. REAPING THE BENEFITS OF BLOCKCHAIN TECHNOLOGY A survey found that only 29% of players believed “gambling is fair and can be trusted.” That’s a shockingly low percentage by anymeans. G P W A t i m e s . o r g 46