This Protocol Could Blockchainize Entire Online Gambling Industry
A Protocol that Could Blockchainize the Entire Online Gambling Industry has been Created by DAO.Casino.
Gambling might be one of the oldest traditions in the world and the history of humankind knows multiple instances of games in various cultures, both ancient and modern.
However, once the gambling market was consolidated, it became quite stiff. It has known only a few innovative movements since the opening of the first gambling house. The first big breakthrough for the industry occurred in the late 20th century with the emergence of the Internet. Having entered the World Wide Web, casinos managed to reach much more people that their traditional brick-and-mortar peers could dream of.
Shortly afterward, with the introduction of smartphones, the demographic coverage widened even further, as people became able to play anywhere and anytime. All those changes outwardly sought to involve as many people as possible in gambling without actually introducing anything essentially new to the very core of the industry.
With the emergence of Blockchain, everything has changed. Some online casinos embraced Bitcoin very quickly, as it allowed them to manage payments more easily. However, generally, they did not embrace Blockchain and remained centralized and traditional. The demand for Blockchainizing the gambling industry still exists and causes lots of developers to create their own solutions.
How Blockchain can disrupt online gambling
These days, a gambler who intends to tempt fortune at a casino has to have some feelings of trust towards the institution. They have to trust that they will get their winning if they win, they have to be sure that they’ll be able to withdraw money without any difficulties, and, in the case of online casinos, they have to be absolutely confident that the arbitrarity used in the platform is real.
However, smart contracts and Blockchain technology might change the game by reassigning the function of the distribution of values to the mathematical algorithm written in a code. One can cheat a person, but one cannot cheat math. And, most importantly, math itself cannot cheat by default. This is where DAO.Casino comes in.
DAO.Casino is a concrete example of an institution that is not actually a casino, but rather a project that develops a protocol that could be used by traditional and decentralized online casinos alike. The purpose of this protocol is to establish complete trust without the need of actually feeling trust. In technical terms, the protocol consists of several smart contracts on the Ethereum Blockchain that all parties involved in gambling may successfully use.
The employment of smart contracts in the system allows for effective interaction that is between casino operators, gamblers, their referrals, game developers and so on. With Blockchain in place, they all can be pretty confident about the accountability, transparency and fairness of all games.
Two more roles for the ecosystem have also been introduced by DAO.Casino: bankroll backer and arbitrary supplier. They are independent and may need to agree just once before digitally signing their smart contract. Once the contract has been signed, it will execute automatically and all values will be distributed according to the rules stipulated therein.
The protocol is also beneficial for independent game developers: they may find a bankroll backer and then get automatically rewarded for their development efforts when people play their games, and, most importantly, retain copyright for their projects.
From the perspective of casinos, DAO.Casino’s protocol can ensure the establishment of trust and provable fairness that some of their traditional and centralized peers may not so easily provide. In an environment of gambling totally free from trust concerns, this might become an enormous competitive edge. They may implement the protocol in their operation and invite all advantages of Blockchain-based gambling without the need to launch another brand or project.
The project does not seek to launch its own casino or get rewards for using its protocol; its main interest is in promoting the protocol’s internal token of BET.
A bigger picture
Despite becoming increasingly popular, both traditional and decentralized online gambling offerings currently account for only 10 percent of the entire gambling market. The reason for that is the same lack of trust towards virtual machines among the wider audience. Even though tampering with games is equally easy in virtual and real casinos, the human mind suggests that the real thing is less prone to meddling due to the skepticism and fears that evolve alongside the recent and rapid development of technology.
In terms of the whole picture, another reason is that real-life casinos offer much higher bets - for example, the Asian casino market is developing very fast.
However, even though the expert community suggests that the situation is not likely to change in the next decade or so, they are still confident that in the long run, online casinos and their traditional counterparts will be on par.
With Blockchain becoming more widely accepted by mass audiences due to the recognition of the technology by nation states and major corporations, and the capitalization of the cryptocurrency market steadily growing, the community is likely to become wider over time.
This will result in the increase of trust towards decentralized casinos and will eventually lead to the extinction of solutions that do not use distributed ledgers to prove that they play fair games. In a generation, such offerings may face a serious decline in demand.
On the other hand, a solution such as this offered by DAO.Casino may become of use once it is deployed to the full extent. However, what is more important, is that it aims at the longer term when Blockchain becomes literally omnipresent.
Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.