How the Blockchain Technology is changing the Gambling Industry
Trust has continued to be one of the key issues facing the gambling industry and never more so than for online gambling sites, with not only concerns over fairness in the calculation of odds and protection of money placed being an issue but also privacy through appropriate security levels to protect gamblers’ personal data.
Blockchain technology is well known for its decentralized technology that removes centralized control, while also providing significantly greater privacy, with the principle of anonymity.
Blockchain technology’s attributes are capable of resolving two of the biggest issues that online gamblers and online gambling companies have faced since the expansion of the gambling industry to the Worldwide Web.
When considering the fact that online gambling now makes up more than 25% of total gambling revenue, with the gambling industry forecasted to hit $50bn in revenue this year, resolving the key issues faced by online gamblers and legitimate online gambling companies would certainly see online revenues begin to capture the lion’s share of the pot.
There’s been plenty of talk over the last year of blockchain technology coming to save the day for the online gambling industry and progress is now being made, with projects underway to develop blockchain technology that is catered specifically for the gambling industry.
The introduction of blockchain tech to the gambling industry would deliver much needed permanent, verified records on a distributed ledger that cannot be manipulated, such an attribute providing much-needed transparency across the online industry.
One of the key benefits in using blockchain’s decentralized ledger is that gamblers will be able to place bets armed with the knowledge that there a transparency in where the bets placed are going and also that the odds for each bet were generated fairly and that the results were also produced fairly.
With the existence of Ethereum’s blockchain technology that delivers a smart contract platform, digital contracts between gamblers and online gambling companies would remove any concerns over an online gambling company reneging on obligations, supporting the principle of instant pay-outs, through the removal of middleman that brings about delays in the event of a dispute.
One of the central players in the industry is Zero Edge. Zero Edge has developed a cryptocurrency for the online gambling industry, with their Pre-ICO launched on 28th February, running through to 27th April before the public ICO that is scheduled to launch on 1st May and run through to 1st September.
Zero Edge has created a cryptocurrency, Zerocoin, targeted solely for the online gambling industry, with Zero Edge’s protocol providing gamblers with 0% house edge casino games, sports betting and a platform for the building of online games in the future.
0% house edge games not only gives gamblers equal odds of winning against the house but also Zerocoin holders with potential earnings that would result from an increase in Zerocoin value, as demand increases and more online gambling companies adopt Zero Edge’s blockchain technology.
Traditionally, gambling companies offer different odds to the true odds, the difference between the true odds and the odds offered being the gambling company’s edge.
Zero Edge addresses the key issues faced by online gamblers. Zero Edge not only delivers transparency with the use of Ethereum smart contracts but also ensures that there are no delays or fees in the deposit and withdrawal of money while including a random number fairness check, with all games being verifiable on Ethereum blockchain.
With Zero Edge’s blockchain protocol, Zerocoin holders are pooled into a mixing set, with the blockchain’s zero-knowledge proof ensuring that verifications can be made without the need to provide any information other than the fact that funds were deposited and withdrawn. The protocol means that coin holders are not required to provide additional information, including wallet addresses, which can and have been traceable on other blockchain platforms, ensuring complete privacy.
Zero Edge delivers just what the online gambling industry has been clamoring for and the upcoming ICO will certainly garner plenty of attention in the coming months, as online gambling companies look to adopt Zero Edge’s offering.