Why is there a need for the PlayChip?
The requirement for decentralisation in the future of online gaming
Few industries have exploded in recent years at rates seen by online gambling. Despite the world’s first casino going online in 1994, online gambling, and particularly sports betting, really began to see massive uplifts since the advent of smartphones in the late 2000's. The global revenue for online gambling was under $25 billion in 2009 — that number is expected to exceed $56bn this year.
A huge amount of this has come from the rise of sports betting and daily fantasy sports. As technology has matured, individual statistics have done with it and the true output of a player in any given sport can be better measured. These statistics can be used to develop algorithms that help define the output and financial worth of a player, or the odds of a contest, helping increase the areas in which one can bet or play and the different opportunities for users to get involved. Many sporting bodies and leagues have embraced the integration of DFS and sports betting having seen the increased interest and spectator-ship it brings to their brand. Throw in the rise of social media and the opportunity to compete/bet against friends and co-workers and we have one of the most significant social and economic industries in the world today.
As with any industry that enjoys such a dramatic rise, a monopoly has grown in these sectors. The few companies with existing footholds in the betting market cornered the online sector early on, having the brand and licenses to do so. Monopolisation can generally spell the end for innovation in a market until a viable competitor or technological development comes along
There are two major issues in the current online gaming space that will be eliminated with the introduction of the PlayChip.
The first has roots in the spirit of the original concept of cryptocurrencies — returning the control of funds to the user. In the current online gaming world, users must request for a withdrawal through the betting site in order to access their winnings. Vendors generally have a minimum withdrawal amount, and occasionally it can even come with a fee. The withdrawal is processed to the bank, who then need to clear the money (whatever this means) before depositing it in the user’s account. While this sounds a simple process, many online gaming businesses in Australia do not process a withdrawal after 2pm as it is not accepted by banks. Add to this the fact that banks do not open on weekends or public holidays when the majority of sporting contests are conducted. This can result in users gaining access to their winnings up to a week following the contest being undergone. Given the state of modern day technology, this system is woefully inadequate and counteractive to the growth of the industry.
Secondly, sport is one of the few international loves that can connect all sorts of people around the globe. However, DFS companies in particular appear to be siloed to their home countries the world over, inhibiting interaction on a global scale. This is partly due to the fact that a lot of sporting interest tends to remain concentrated in local competitions, however it is also due to the lack of a global payment solution.
As the world becomes more globalised, interest in foreign leagues and international sports is heightening. With this comes growth in DFS and gambling participation. The number of professional DFS players and gamblers grows year on year. With a decentralized utility token that can be redeemed in local fiat currency or other cryptocurrencies, DFS players can now take their talents to a global level and seek challenges in competitions and countries that previously may not have been open to them.
Unfortunately there remains a lack of a genuine use-case for many crypto assets entering the market today. Although many of the ideas in the industry are revolutionary in nature, the reality is that a significant disruption is required to the status quo to achieve mass adoption.
The beauty of the PlayChip lies in its simplicity. The token will serve as a universal gaming currency for an industry that previously had none. The industry is pre-existing. The demand is there. A centralised version of the PlayChip with a static value is already in use. This is already incredibly rare in the world of ICOs.
Via the blockchain, users of the PlayChip can seamlessly transfer their internationally at the touch of a button for a handful of cents in transaction fees. Through cryptocurrency exchanges, players have the opportunity to convert their winnings into other cryptocurrencies in next to no time at all.
In Australia, organisations such as Living Room of Satoshi offer fee-free bank transfers and BPAY payments from 13 different crypto assets, while CoinJar offers a Bitcoin-enabled debit card. Add the 20 live Bitcoin ATMs nationwide (expected to increase to 3000 by 2020) and the increased number of vendors accepting cryptocurrencies, the options for spending one’s winnings are dramatically increased. While Australia is certainly one of the more progressive nations in crypto-payment adoptions, many others are either on par or not far behind.
Though decentralisation and blockchain are buzzwords that are overhyped in the industry today, best believe they are here to stay. The introduction of decentralised currencies and utility tokens will enhance global markets as we know them today, and return control and asset management to the true owners.
Welcome to the PlayChip — the universal gaming token
