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Gambling on blockchain

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Why online gambling operators and suppliers pursuing blockchain and cryptocurrencies should interest investors

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Bitcoin’s rollercoaster price fluctuations have thrust cryptocurrencies and blockchain technology back into the media spotlight once again. While a growing number of analysts and investors are convinced blockchain and crypto will be the platforms and currencies of choice for businesses and consumers in the future, others remain unconvinced. The volatile nature of Bitcoin’s price of late has done little to help.

Despite this, it is clear blockchain and cryptocurrencies offer plenty of upsides for businesses, and some investors are keen to explore these. They have the potential to shake up all kinds of industries, and as more sectors and companies embrace blockchain and cryptocurrencies, widespread adoption will soon follow. But which industries and businesses should investors back now?

Online gambling: A natural fit for blockchain and crypto

The global online gambling industry has built a reputation for its pioneering approach to technology and embracing change. Gambling operators and suppliers are some of the largest businesses in the world, with incredible growth trajectories that continue to keep their shareholders happy. The sector is also a hotbed of innovation, with several businesses now developing on the blockchain and also offering crypto payments.

This should pique the interest of investors; the online gambling industry is already exciting, with a recent wave of mergers and acquisitions crashing down on the market and providing plenty of opportunities for investors to cash in. The sector’s interest in blockchain and crypto ramps up this excitement further, providing new areas of growth for operators and suppliers, as well as their shareholders.

But which companies are backing blockchain and crypto in a big way, and which are hedging their bets? 888casino is one of the largest online gambling operators in the world, and is listed on the London Stock Exchange. It is a tech pioneer, offering online casino, poker, bingo and sportsbook products to players in regulated markets all over the world.

The company has yet to move on blockchain and crypto currencies, but it is keeping a watching brief while it decides how to procced. An 888caisno spokesman said: “Blockchain and cryptocurrencies are hot right now, and it is clear there are several ways in which they can benefit the online gambling industry. We are biding our time while we decide the best way to procced with the technology.”

But what are the benefits of blockchain and cryptocurrencies, and what makes them such a good fit for the online gambling industry?

Blockchain technology opens the door to things that simply aren’t possible with older technologies and platforms. Decentralized protocols work in a different way to centralized ones. This includes security, fairness and transparency.

Security

Blockchain platforms are more secure than traditional platforms. Centralized applications are vulnerable to attacks like DDoS, but these attacks don’t work on a decentralized platform. Also, because there is no single point of failure, online casino sites using the blockchain never suffer outages or downtime. This, in turn, means all the necessary player protection tools are always available and 100% effective.

In addition, blockchain technology provides increased data protection as transactions can’t be altered by a third party. It also helps when it comes to holding player funds; there is a clear record of the deposits and withdrawals made, making it almost impossible for operators to use player funds to finance the running of their businesses, which has happened in the past.

Fairness

Can also be guaranteed to all participants in a game. While the random number generators currently used by operators and suppliers to decide the outcomes of games must be tested and varified by independent third parties, blockchain allows games to be “Provably Fair”. In short, this allows the player to check the outcome of every spin/roll/hand dealt/etc themselves to ensure the outcome is honest and fair.

Transparency

Encrypted, publicly accessible ledgers mean that transactions (deposits and withdrawals) can be monitored and checked by players. Everyone can see past transactions in a way that doesn’t expose the security of the system. With other blockchain features such as smart contracts, it’s even possible to see future transactions that will self-execute.

These are just some of the benefits offered by blockchain and cryptocurrencies that online gambling operators can, and are, taking advantage of. Some have already launched platforms and products on the blockchain and using cryptocurrencies, such as former PKR founder Jez San and his new venture, FunFair. San believes his platform will change the game for operators, suppliers and players.

As with any investment, backing an online gambling firm is, well, a gamble. But those working with blockchain technologies and cryptocurrencies are putting themselves – and their investors – in the driving seat to cash in further down the line. There may be some skepticism around blockchain and crypto, but as more big businesses embrace them, it won’t be long before their use becomes universal.

As the saying goes, you have to be in it to win it.

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