Dao.Casino Brings Transparency to Online Gambling with Ethereum Protocol
Dao.Casino is bringing transparency and fairness to online gambling with their Ethereum-powered system of smart contracts. There are many online gambling sites that deal in cryptocurrencies, but Dao.Casino is the first to develop a decentralized, public protocol that supports provably fair gambling as well as game development for all participants of the gambling industry. Most online gambling casino operators want to prove their honesty, and Dao.Casino’s protocol allows them to do so. By developing the protocol on Ethereum, Dao.Casino removes the need for a trusted third party to arbitrate value transfers.
Dao.Casino Founder and CEO, Ilya Tarutov, said, “the gambling industry needs an ecosystem that incentivizes contributions from all industry parties, from game developers to players and investors to random number providers and casino operators. Our goal is to change the conversation around online gambling to be centered on fairness and transparency.”
The issue with centralized systems is that they rely on third party intermediaries to arbitrate the process of value transfer, and these human administrators can be corrupted. By developing an ethereum-powered protocol for gambling, Dao.Casino eliminates the corruptible threat posed by single points of failure and replaces third party intermediaries with code executed by the Ethereum network system of smart contracts.
To incentivize participation by the various parties involved in the gambling industry, Dao.Casino rewards users who create new games, operate casinos, bankroll game development, and contribute random number algorithms with BET-protocol token, Dao.Casino’s in-game token currency. Dao.Casino’s smart contract system ensures that cheating is not economically rational, and if users act maliciously, they lose their tokens.
Another way to participate in Dao.Casino’s gambling protocol is by becoming a bankroll backer or referrer. Any token holder can become a bankroll backer by supporting a particular game; bankroll backers simply lock their tokens in a game contract of their choice and automatically receive reward. By promoting a game to other players, referrers receive a percentage of tokens generated by the game. The reward received by a referrer depends on whether the new player is an active participant, which ensures that game creators do not share funds with referrers without receiving some benefit in return. When players discover the game without the help of a referrer, the system itself receives the reward.
Building on Ethereum is still relatively new to many developers and gambling industry participants, and it’s Dao.Casino’s belief that their built-in incentives will attract developer talent who can hone their skills by creating games on the Dao.Casino protocol. The more games are introduced, the more players will be attracted to participate. Dao.Casino’s prototype is already up and running and players can try their hand at Dice and discover new games as they are created. Users can obtain tokens by becoming a random number provider or referrer, or by supporting a crowdfunding campaign.
Dao.Casino expects early adopters of their protocol to be comprised primarily of Ethereum enthusiasts and those already familiar with decentralized systems, but their system has much wider implications. By automating out the need for trust, the gambling industry can widen its appeal and expand to new markets.