Online gambling has clearly emerged as one of the most obvious use-cases for decentralization today. Pandering to human greed and a dopamine-on-demand business model, we see the rise of decentralized gambling organizations such as BetDice.
What are decentralized, crypto-native companies? These are “companies” or organizations that exist purely on the internet. Crypto-native companies however take it one step further. These organizations exist purely on the blockchain with business logic bound by smart contracts. Unlike a gambling casino website that can be censored, or requires a full-time management team to run, once such an organization comprising thousands of lines of codes are launched on a smart contract platform, it can effectively be automated to the extent that minimal human intervention may be needed to keep the ecosystem alive for as long as the underlying Layer 1 blockchain exists.
Today the little known BetDice is likely the most successful on-chain company in the world. Built on the EOS smart contract platform , it currently processes $1bn in bets a month, and pays out dividends of millions a week all automatically on smart contracts via their native token DICE with minimal human intervention.
Here is why BetDice is such a huge deal:
- Blockchain, open-source gambling dApps are provably fair. Anyone in the world can look at the underlying code and RNGs. We have basically decentralized trust; we no longer need to trust a casino that their machines aren’t rigged.
- Token economies massively increase stakeholder and user interaction. This is a whole new level of user-interactivity & gamification.
- The DICE native-token embodies economic value being created at at every stakeholder level, from the development team, to new users who are being incentivized to bring in new players. Everyone benefits from a rise in the DICE value as the network grows larger. Each user joins the network knowing their funds are safe (to the extent that the code is well-written), and are part of the EOS ecosystem.
Once we can figure out how to scale the Betdice model in a compliant way across a large # of use cases, crypto-native organizations WILL begin to form across all sorts of digital sectors — and what I believe to be a new foundation of human society and value creation. The world will be flatter, fairer, allowing millions and billions of people across the world to enjoy in shared prosperity.
Traditional organizational structure with a Board of Directors, Shareholders, who simply treat users as products to be monetized will eventually be disrupted. Capitalism 4.0.