Blockchain in iGaming: Future or Beyond?
Blockchain, a cutting-edge technology, is poised to redefine iGaming. Beyond just Bitcoin, it’s impacting payment systems, compliance, and even gameplay. Let’s explore its role in the future of online gaming.
What is Blockchain Technology?
Simply put, blockchain is a highly secure way to record information, making forgery almost impossible. It uses a digital transaction log, duplicated and distributed across a network. Transactions are verified by comparing information in these sequential “blocks.” Falsifying records would require controlling most network computers, practically unfeasible for large networks like Bitcoin.
Blockchain and Regulation
Blockchain’s uses go beyond crypto. In iGaming, it’s impacting payments via crypto casinos. This raises KYC (Know Your Customer) and AML (Anti-Money Laundering) challenges in regulated areas. The main issue: tracing fund sources. Crypto wallets are anonymous, complicating AML checks. Non-compliant operators risk grey markets.
Conversely, blockchain can boost compliance. It securely records platform activity, storing immutable player data and reports. This transparency helps a healthier ecosystem, simplifying regulatory adherence and protecting players.
NFTs: Blockchain Entertainment
Blockchain also enables new entertainment. NFTs (Non-Fungible Tokens) are unique proofs of ownership on a digital ledger, linked to a digital asset. Unlike crypto, NFTs aren’t interchangeable. Their value stems from ownership pleasure, creating “digital scarcity.” Assets can be text, images, video, or collectibles.
NBA Top Shot
Booming in 2021, NBA Top Shot offers basketball collectible NFTs – short video clips (“Moments”). These are limited, numbered editions. Users buy/sell individual cards or packs. Some view it as betting, especially as buying a $100 pack might yield a card worth thousands.
Sorare & Loot Boxes
Sorare is Europe’s answer to NBA Top Shot, with football player NFTs on Ethereum. Sorare sells individual cards/packs at fixed prices, lacking a “random mechanism” in acquisition, differentiating it from gambling.
This “closed pack” mechanic makes NBA Top Shot gambling-like. The UKGC is investigating Sorare’s gambling status. Loot boxes (video game monetization selling closed packs) are a similar concern, with some countries banning them. Studies link loot boxes to problem gambling. While a blanket ban is unlikely, strict regulation for loot boxes and similar blockchain games (like NBA Top Shot) is probable. Sorare’s future is less clear without the random purchase element.
Conclusion
Blockchain plays a dual role: challenging regulations with anonymity, yet offering solutions for transparency and new entertainment. Its evolving future in iGaming promises significant shifts.
