Blockchain for Gambling
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The document discusses the integration of blockchain technology in gambling, highlighting its potential to enhance transparency, fairness, and security for players through smart contracts and verifiable algorithms. It addresses various regulatory challenges and opportunities while illustrating examples of decentralized gambling platforms, suggesting a transformative future for the industry akin to the early internet era. Ultimately, it emphasizes blockchain's ability to reduce fraud and ensure a trustworthy gaming experience.
Blockchain for Gambling
- 1. Blockchain & Gambling Intro and Outlook BlockchainHub ■ Dr. Shermin Voshmgir ■ Dec 1, 2017
- 2. Gambling Use cases Traditionally players have no way of checking the fairness of any draw or result. Rely solely on audits of trusted 3rd parties in fragmented regulatory environments. ● Balkanized regulation ● Fairness of results/draw ● Transparency of payouts ● Deduction of 3rd party charges from winnings ● Lack of availability of payment methods in some territories
- 4. ● Eliminate player deposit risk smart contract as escrow funds never leave wallet before end of game. ● Transparency & gameplay fairness through RNG and provable fair algorithms ● Reduce player costs
- 5. Distributed transation verification No single player holds an advantage at any stage of the gambling process.
- 6. Blockchain is not controlled by a single user! making it almost very expensive to alter underlying data.
- 7. Greater resilience against fraud and prevents manipulation of records in the chain.
- 8. No Black Box Transpart & Verifiable
- 9. Provably Fair! All lottery entries, all bets and all payouts ever made within a blockchain network are transparet &verifiable.
- 11. Even if RNG not fully decentralised, blockchain can allow players to review the RNG process by which a particular card was drawn or dice rolled, -> verify fairness
- 12. Provably fair Algorithms ● Service operator publish a method for verifying each transaction in the game. ● They use open source algorithms for random seed generation, hashing, and for the random number generator
- 13. Regulatory Opportunities ● Transparency access to the same information as the organisations they regulate. ● Real Time Auditing Digitised transactions can be audited in real time, instead of, say, annually. ● Traceability It will become easier to trace transactions.
- 14. Regulatory Challenges ● Which law applies? in a P2P network of computers? ● Testing Regulators will need to establish new protocols and standards for testing blockchain-based gambling activities. ● Anonymity AML/KYC Identity ● Void bets Regulators such as the Gambling Commission can have powers to void unfair bets. How with Smart Contracts?
- 19. Claim to use provably fair system using state channels containing pre-committed partial RNG seeds provided separately by the player and the operator. Partial seeds are committed to the blockchain at the start of the gaming session. During gaming a State channel with the added ability to verify a progressive reveal scheme by both parties, advancing a deterministic (“fated”) but unpredictable sequence of random numbers
- 21. Ethereum Lottery
- 23. Quanta Online Lottery first implementation of a fully automatic and trustless Decentralized Autonomous Lottery Game using smart contracts on the blockchain (see white paper draft) White Paper http://www.quanta.im/Quantalotterywhitepaperdra ftv0.4.3.pdf
- 25. It’s like 1990 for the Internet we don’t know how this will pan out but the future is likely to be much more #decentral