Gambling is fair
In a discussion with Cointelegraph, Ilya Tarutov, CEO of DAO.Casino, summed up some of the main problems that Blockchain technology could solve in the online casino industry.
According to Juniper Research, online gambling is a growing industry and the number of players is expected to nearly double by 2021. The industry will grow as the number of online gambling sites grows and new payment systems emerge, such as the ability to play with Bitcoin and other cryptocurrencies.
In fact, for the traditional gambling industry, the adoption of cryptocurrency has so far been the most common experience with Blockchain systems. However, blockchain technology helps us do so much more. We have seen the emergence of new types of gambling over the past two years, including Ethereum-inspired gaming games. It is now possible to create a protocol that will trigger a real paradigm shift in the online gambling industry, allowing new markets and business models to emerge. Just as the Internet enabled new markets by removing barriers to data processing and distribution, decentralized systems such as Ethereum enable new business models and disrupt industry by removing barriers to value transfer – which has never been possible before without trusting a third party.
Ilya Tarutov, CEO of DAO.Casino, spoke with the Cointelegraph about how to overcome some of the biggest obstacles in the gambling industry.
A multifaceted approach is needed.
According to Tarutov, Ethereum-based systems can cause a major paradigm shift in many areas, including online gaming, by eliminating the need for third parties. There are a number of consequences here, but they all reduce casino operating costs and reduce the chance of fraud. Individual gambling built on Ethereum, on the other hand, does not completely solve the problem; a more comprehensive approach is needed. As Tarutov explains, games are just the tip of the iceberg in the gaming industry, which includes game creators, Referrers, casino owners, software vendors who create account management software, and other casino bonuses.
DAO.Casino recommends a holistic approach to this, covering the entire value chain of the gambling industry, from the well-planned development of gambling to the improvement of value-sharing mechanisms among assistants.
“The results of the game are determined by pseudo-random values, which are similarly unpredictable, and anyone can check this. No one can change or change a game program until it has been reviewed and implemented. This does not apply to conventional online casinos that are hosted on a server. The games do not involve fraud or third party intervention and run exactly as they should.
Online casino business models are very limited in terms of versatility and profit prospects – neither for the customer nor for the casino. “Currently, casinos may have business models that benefit from their ability to manipulate user account balances,” Tarutov explained. “Nor can they benefit from the benefits of interoperability with other casinos. However, because the ability to manage a user account balance is now available, traditional online casinos must either embrace and offer it, or run the risk that others who are able to reinvent their business model and provide better service will have to close down. “
Building a layer that allows P2P to open market is the last missing component that can allow for a major paradigm shift. According to Tarutov, the integrity of the data and codes provided by systems like Ethereum allows for greater collaboration between players in the industry – casinos can list games from independent developers – because they don’t have to trust each other and the value generated by the game is automatically shared.
DAO.Casino will create a decentralized public system for the gambling industry that includes an automated value exchange protocol that acts as an incentive mechanism maintained by Ethereum’s smart contracts, as well as a system that can provide players with similar unpredictable pseudo-random numbers.
As a result, automating critical elements of the online gambling industry, which is usually associated with trust, theoretically reduces the risk of fraud while reducing casino overhead, allows players to make higher profits, and funds the efforts of game developers. This will ultimately enable the development of modern, longer-term business models.
Tarutov summarized the main problems that Blockchain technology could solve in the gaming industry.
All companies must take into account the accumulation of trust and the potential for abuse of trust and corruption. Trust has long been considered one of the most significant problems for online gamers