Blockchain Use Case: Online Gambling

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Although the market has been down recently, we couldn’t be more excited here at BetProtocol.

Recently, Ari Paul, CIO and managing partner of BlockTower Capital, joined Real Vision’s Ash Bennington for a wide-ranging conversation about the future of blockchain and cryptocurrency. Ari unpacks his views on the risks and opportunities in crypto-assets and discusses the ways in which he draws on his background as a traditional asset portfolio manager to make better decisions. Most importantly, one of the topics discussed was the importance of blockchain technology in online gambling.

The interview focused on scalability, ways to improve adoption, current technology developments and even a brief price action analysis.

During the discussion, Ari referred to gambling as being a great use case for decentralization.

“A little bit longer term, kind of sky’s the limit, so there’s somewhat basic use cases where it’s just about decentralizing…”

As previously pointed out in some of our latest articles, online gambling needs more openness, transparency and open-source frameworks, a future BetProtocol is currently building.

“So for example, gambling, where you have probably fair gambling, so you don’t have to worry the gambling site is ripping you off, because the calculations on the bet are actually visible.”

Our goal is to increase transparency and fairness for everyone in the online gaming world using blockchain and smart contracts. For more detailed information, please check our whitepaper.

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https://www.betprotocol.com/whitepaper.pdf

You also don’t have to worry about counter-party risk to an online gambling site. I was a poker player in college, and some of my friends lost money in Black Friday, which was a day when a bunch of poker sites got shut down and a lot of the money vanished.”

A huge setback for any online players is the fact there’s always a trust issue between the end user and third-parties. In many cases, gambling sites don’t provide enough enough fail-safes or reliable means to secure user funds.

“So you could potentially have non-custodial gambling, where the site doesn’t hold your money.”

A Plurality Of Use-Cases

As mentioned by Ari Paul, the focus of blockchain should remain on the core concept of decentralization, meaning any improvement should be around:

  1. Odds transparency: cryptography has made it possible for gambling platforms to prove that they are honest.
  2. Privacy and regulation compliance: to provide better tools to developers and business, in order to make dapps standardized and compliant.
  3. Wisdom of the crowds: blockchain technology introduces the possibility of creating decentralized prediction markets where users can bet on the outcome of an event, while being rewarded if proven honest.
  4. Making online gambling accessible to more users!

To expand a bit more on user privacy concerns, BetProtocol is looking to expand its offering by allowing users to keep their transaction data fully private, through the possibility of integrating our decentralized gambling protocol with privacy-based protocols, like Dusk Network and Arnaud @AZTEC Protocol — as both have privacy features integrated within transactions allowing users to exchange value privately. More interestingly, there are several cutting edge enhancements with AZTEC’s protocol, including generating “viewing keys” for each zero-knowledge transaction, whereby a third-party is allowed to view an otherwise confidential transaction’s contents, but isn’t allowed to spend the notes/coins. This could be a boon to regulators and satisfy GDPR’s rather stringent requirements at the same time. In addition, there’s an option to incorporate stablecoins (such as MakerDAO’s DAI) within BetProtocol, in order to give users a way to safeguard their deposits and winnings against price volatility.

Of course, to achieve the all above goals by oneself, one needs to build not only an amazing gambling app, but also make sure it complies with different sorts of regulations, AND the backend.

Conclusion? The price of development, deployment and maintenance of any gambling app is extremely costly and there are bottlenecks concerning players’ privacy, within traditional betting ecosystems.

The Solution?

Better yet, what if said protocol was blockchain agnostic and allowed for all players, from all tech-backgrounds, to build their own vision of how the future of betting should be?

That’s precisely our mission here at BetProtocol!

To provide developers with an easy, open-source framework to build all sorts of betting apps and prediction markets!

Thank you

BetProtocol Website

BetProtocol Telegram

by Pedro Febrero Jr.

Written by

The First Universal Gaming Protocol powered by Blockchain

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