iGaming is gradually developing around the digital technology of blockchain. The general public mostly associates blockchain with cryptocurrencies, most notably Bitcoin. However, blockchain technology brings something far more useful to the table that has already achieved significant gains thanks to the online gambling industry.
If you think of blockchain as a public digital ledger, capable of storing every source of info safely into the system, then it comes as no surprise that it can benefit the iGaming industry and bring fairness and stability to players worldwide. Blockchain doesn’t only streamline the way players can behave in such an environment, but it also allows operators and regulators to have much more freedom and independence from third parties.
Three Pillars of Blockchain Technology for the iGaming
The iGaming industry can harness the power of blockchain technology to tremendous effect. The iGaming space faces a string of hurdles that it continues to overcome, most notably gaming fairness and the transparency of payouts from slots, lotteries, table games and many more gambling avenues. First and foremost, it’s important to recognize that blockchain could play a key role in addressing these concerns, creating increased trust and confidence in the iGaming sector.
Provable fairness is the principal feature that the iGaming sector obtained through blockchain technology to ensure the code’s authenticity. All types of iGaming operators – from online lottery and slots through to table games and bingo, can display and verify their code’s credibility by incorporating ‘provably fairness’ methodologies. RNG (Random Number Generators) rendered the outcome of slots and table games fully decentralized and verifiable.
Establishing Smart Contract Agreements
In a nutshell, smart contracts are a set of instructions that follow a pattern ‘if this, then that’ which includes all participants to a transaction. Smart contracts establish a more trustworthy relationship between the players and the operator as they are built upon verifiable and publicly available immutable contracts. If this pattern is applied to a casino, roulette being the best example, as soon as the player places a bet on black, and the ball indeed hits black, the player wins, and the casino automatically pays out the winnings. The same goes the other way, if the ball hits red, the house wins, and the player loses the money. Smart contract agreements eliminate the demand for top-level management and surveillance, as every action would be backed by digital agreement thereby automated and verified.
dApps Dominance and Benefits
“The simpler, the better” is a tagline that keeps cybercriminals at bay. Statistically, more complex iGaming blockchain projects have been hacked by a backdoor loophole. Luckily, blockchain-based platforms take the opposite route as they’re (at least theoretically) as simple as it gets.
As virtually half of the top 100 dApps are betting-related, it comes as no surprise that the iGaming division keeps being mentioned as one of the primary use cases for the blockchain in 2019. This trend will certainly continue in 2020.
EOS and TRON have dominated the iGaming dApps sector to a point they rightfully solidified themselves as main competitors to Ethereum. Together, they make up 74% of the top 100 dApps categorized by daily volume and user base, according to DappRadar info.
What else, and where else?
Traditional operators own and control networks that store the games, game guidelines and commands, history logs, player information, banking information and other sensitive data.
Blockchain operators, however, store the information on the blockchain, meaning that all the sensitive information gets stored on a decentralized network of nodes, all acting as code processing and information storage ledgers independent of each other.
Traditional gaming sites have been prone to hacks, attacks, leaks and other issues, all of which were a result of having a central point to be exploited — their servers.
Without this central point to be exploited, iGaming platforms are more resilient to hacking. To properly hack a blockchain iGaming platform, the hacker would have to hack every node on the blockchain. And that would be only the first challenge. The hacker would then have to find the relevant line of code she is looking to hack, figure out how to dig through all the transactions under which her target code was buried on the node and repeat that for all nodes.
Putting all of this together by examining issues that have historically been problematic for traditional iGaming platforms and examining how those issues would be met by blockchain technology shows that the technology should not be ignored.