The Role of Blockchain and Cryptocurrency in Online Gaming
The worldwide gambling market is prosperous and the outlook positive due to a number of factors, including an easing of government regulations in some countries, the potential to generate tax revenue and contribute to national economies, and the wider reach of online gambling. Global revenue from gambling is expected to hit $635 billion by 2022, according to new findings out of Dublin, Ireland from Research and Markets. This represents about 5.7% growth p.a.
While land-based casino gaming dominates the global gaming market, online gaming is becoming increasingly popular because of the convenience and privacy offered to players and vendors. With the increased penetration of smartphones and tablets, operators are attracting a larger audience and are better prepared to attract millennials, a customer segment that is tech savvy, mobile and interested in new varieties of games.
The rise of online gambling also creates opportunities to use emerging technologies to develop revolutionary solutions to the industry’s biggest challenges. Although today the use of Bitcoin is a small portion of the online gambling market, the use of the blockchain to manage transactions could solve issues with fairness, security, privacy and transparency. Already, online gambling with cryptocurrencies is a global market with a cap of around $30 billion and 10% growth p.a. In 2016, the total amount of bets on cryptocurrency casinos exceeded 1.5 million BTC and now there are hundreds of online casinos (crypto-economy.net).
Blockchain is a decentralized system; no one company or person can have an advantage over the players. This reinforces transaction fairness and also allows for immediate deposits and, importantly, withdrawals. On the whole, Bitcoin casinos provide far more favourable odds and pay-outs than their real-money counterparts.
The use of blockchain technology also allows for secure and private transactions. Entering personal or banking information when registering at an online casino utilising cryptocurrency is not required — typically a username and password is all that is necessary. The use of blockchain also drives transparency as it will ensure timely, meaningful and reliable disclosures about a company’s performance.
The gaming industry is increasingly capitalising on this trend. The number of Bitcoin-only and cryptocurrency-supported online gaming platforms are on the rise, with new platforms and game titles being added on a regular basis. A handful of gambling platforms have also gone further to develop blockchain-based games with smart contract integration to create a new generation of online gambling games.
These developments also create new space for engaging in the market and that’s where EdgeFund comes in. EdgeFund is an open-source, blockchain-based platform which offers a decentralized shared bankroll through the Ethereum network. It will allow licensed game operators to provide fixed odds games, without any bankroll of their own, at zero financial risk. Check out our website at edgefund.net and follow us on twitter.com/edgefundteam and medium.com/edgefund to learn more.
Cryptocurrency’s success in this market depends on several factors. One of the most important is regulation, and we’ll be keeping a close eye on any developments in this area.
