At present, blockchain adoption hasn’t occurred in mainstream society. If and when it does, it’s expected to change how a lot of digital and web-based transactions work, and mostly for the better. The iGaming sector could benefit a lot, it seems. It hasn’t happened yet, but we can speculate on how possible blockchain adoption could help the iGaming industry.
What is the Blockchain?
Right off the bat, a blockchain system will protect players, make fraud nearly impossible and guarantee even more fairness across the board. Online slots at Paddy Power Games and other top operators can remove middlemen and then offer better odds and RTP to clients. Transactions can also be very fast, especially if crypto is used, with tiny transfer/withdrawal costs too. These large and recognisable operators are in the best position to leap into the blockchain when the time is right.
The simple way to describe blockchain is that it is a public ledger that stores data in blocks, then it cryptographically secures information when those blocks are full to avoid tampering, as explained in this article by GeeksforGeeks. Then another block is created, linked to the old one. So, it’s a chain of blocks.
The hype around blockchain is quite simple. Assuming the blockchain is decentralised, which means distributed across a wide net of people, it becomes virtually impossible for a bad actor to go back and edit data. No one person holds the keys to the castle.
Blockchain technology gained popularity alongside Bitcoin, which uses this method to add scarcity (and also value) and avoid double-spending. As such, blockchain is often inseparable from crypto, but can exist with standard data systems. Many believe that it is vital for the trustworthy, peer-to-peer economies of the future.
Blockchain & iGaming
What could this mean for iGaming? Here are the main ways that widespread blockchain adoption would benefit online casinos and their related businesses.
- Secure and transparent data records, in real-time, and very difficult to tamper with.
- Player accounts and their activities can be cryptographically protected, fully anonymised.
- Automated smart contracts, discussed in an article by IGM, would allow the rules of the game are baked into its code and aren’t subject to middlemen.
- If desired, crypto and other means of creating digital scarcity like NFTs can be used to make on-site currency more valuable.
The Technology Adoption Curve
So where is blockchain adoption today? Most technology adoption occurs along a predictable curve. With this curve, it’s possible to pinpoint where we are in typical adoption timelines.
If we’re calling the early Bitcoin and blockchain developers the innovators, then we are in the end of the second stage. The early adopters of the first blockchain projects are long gone, but early majority adoption hasn’t happened yet. Remember that crypto needs the blockchain but the blockchain doesn’t need crypto, so widespread blockchain adoption in transactional/administration systems doesn’t mean that everybody will use crypto.
Adoption will only come when sector leaders take the plunge. If we are close to the early majority stage of adoption, where risk is lowest, then it should be sooner rather than later.
iGaming leaders are in the best possible situation to explore blockchain solutions. With iGaming being almost entirely digital, the sector would have a lot to gain and nothing to lose.
