No More High Extra Fees: Can the New Service-Based Blockchain Business Model Deliver?
It is no doubt that ever since the dawn of the blockchain technology in 2008, industries have been revolutionized by the uncontested decentralization, security and transparency it brings to traditional systems. The blockchain protocol, alongside its irrefutable cryptographic techniques, has provided solutions to the then-unsolvable problems of centralized systems, specifically when it comes with trust and privacy. This is the very reason why the blockchain itself has found its way from the most basic industries such as cryptocurrency, money transfer and data networks, up to the most complex such as DNA databanks, and AI consciousness clouds. Imagination is the limit when it comes with the versatility of the nascent tech.
For every action, there’s an equal and opposite transaction
Those who have been using blockchain-based technology, however, also knows its Achilles’ heel — fees. Since miners and verifiers require to be rewarded in exchange for their service in keeping the blockchain ledger going, each block being added to the chain requires a fee. This also goes with the usage of other features of the whole ecosystem and other factors such as transaction sizes (measured in KB), network congestion and liquidity providers, meaning that there is a fee for every action on the chain. For the frequent loyal users of blockchain, this means extra fees on top of extra fees.
Albeit these fees are lower than that of its traditional counterparts, it’s still an aspect of the blockchain technology that needs improvement.
The new kid on the block
A new blockchain company named Faireum brings a new solution on the table. Its field? The online gambling industry. The mission? To protect users from incurring high extra fees with a service-based business model.
The online gaming industry has experienced exponential growth in the past couple of years. In a span of 9 years from 2009 to 2018, the industry has grown from $20.51 billion to $51.96 billion, stapling it as one of the most lucrative and rapidly-growing industries to date.
Studies show that 11% of all internet traffic is from online casino players. In the UK, the industry has increased by 300% since the new legislation in 2014. This spiked the industry’s value in the UK to 6.7 billion, and by 2024, global online gambling is expected to rise up to $94.4 billion with a compound annual rate (CAGR) of around 10.9%.
Faireum aims to revolutionize the way users experience online gambling with the innovations brought by their very own independent blockchain technology. And seeing the enormous size and overwhelming growth of the online gambling industry, as well as the common problems it faces, the said industry serves as a good ground to prove Faireum’s blockchain-as-a-service business model as the solution to this pressing problem of high extra fees.
A knight in shining armor for customers
Customer loyalty and rewards are often overlooked in the existing blockchain business model. This makes users feel unincentivized and unappreciated for their loyalty towards using the technology.
Faireum sees a sustainable business model where their blockchain and its underlying technology is considered a service. Instead of incurring fee after fee for every transaction, Faireum will be using a subscription model for their services. This is their solution to maximize each player’s odds and minimize entree fees while at the same time ensuring a sustainable business for providers.
With traditional casinos, players do not receive rewards for their loyalty. In the event they lose, they don’t get any form of compensation. Because of this, a lot of online companies have lost customers.
With the adoption of Faireum, online gambling steps are offering returns to players depending on the losses they’ve incurred. Some online platforms even propose special bonuses for their players. For instance, some platforms return to its customers 10% of all money they’ve lost in a month. These returns are made possible by reduced transaction costs courtesy of blockchain technology.
Having its own token, called FAIRC, users are able to convert fiat money and other crypto, and use them for placing stakes in participating on Faireum’s official gambling platform as well as availing Faireum’s blockchain services. With this tokenization, Faireum claims that it will lessen transaction costs and eliminate delayed payouts by abolishing intermediaries in place with a completely automated and trust-free system.
Increased trust and transparency
In the past, there have been claims that online casinos are using scams and underhand methods to rob their clients, hence the phrase, ‘the house always wins.’ Some proven cases of fraud on these online platforms cause many people to stay away from these sites.
When a player realizes that the odds are stacked against him because of a lack of transparency, he’ll inevitably avoid the platform altogether to save himself the loss. Eventually, the casino ends up losing money and not making any at all.
The new blockchain technology will help in boosting trust among online casinos and players. This will help build confidence in the industry. And with smart contracts being used to verify records, data cannot be manipulated, hence an increase in transparency which makes the industry thrive.
A future open for everyone
As the development of their ecosystem continues, Faireum plans to release software development kits (SDKs) for online casino proprietors to be able to adopt Faireum’s own official blockchain-based games as well as create their own games built on top of Faireum’s very own independent blockchain, opening to everyone the opportunity of having trustworthy tech and businesses that are sustainable even outside crypto.
Introducing the new service-based blockchain business model and its underlying technologies opens more options for users and proprietors alike to choose from, taking into consideration their most pressing concerns about their needs and having appropriate solutions tailored specifically to target them. With these constant developments, the possibilities are endless for the technology and its industry.
Faireum has recently announced their ICO presale starting on March 25 to April 24, 2019, which grants buyers 30%-40% bonus. Sign in to the Faireum dashboard to keep posted on the latest updates by clicking here. You may also visit Faireum’s gaming platform by clicking here. And lastly, you may keep in touch with Faireum in Telegram, Twitter, Facebook, LinkedIn and Medium.