Blockchain is the future of online gambling

January, 10th

With the fast growth of the online gambling there is a considerable quantity of new casinos in the market, and not always their founders are honest. In many countries the industry has been on the verge of a crisis because players have lost trust in online gambling. Organizers of games striving to earn as much as possible manipulate prizes or even do not pay the players the money they won.

Eventually this situation may lead to the decline of the whole industry.

The root of this problem lies in the working principle of online casinos. All information on bets is stored on a server of an online casino provider. The game algorithm is hidden from players. It creates for organizers the opportunity to make changes that are invisible to players and to influence the game outcome. As a result, players feel deceived and finally lose trust in online gambling.

It is possible to object, that indicators of market growth testify just to the opposite tendencies, that online casinos, despite manipulations with prizes, become more popular every year and that outflow of gamers is not happening just now. But after all it is a matter of time. If we fail to see the risks, it may become a disaster in the future.

New technologies already come to the aid of the industry. The FairWin developers have created a new online gambling platform based on the Ethereum Blockchain technology. Unlike traditional online casinos, all data about the bets is accessible to everyone in the system, and nobody can affect the algorithm without the knowledge of all participants. Thanks to the blockchain technology, prizes become absolutely fair now. If the game system declares that the Return to Player (RTP) value is 96% — it really is so. Every player can see this by checking the open code. By using the special “FairChannel” the platform founders make transaction process faster, thus keeping the bet history open and providing safety from unauthorized access.

For this reason we believe that the gambling industry future belongs to fair or “public” casinos where game algorithm data is accessible to all players, and every one of them can be convinced personally that he has received a fair prize.

One feature of this technology is that game bets are made with tokens (called “FWIN”).

Only one year ago experts claimed that cryptocurrencies are one of the major trends of the gambling industry development. It is still true today. Taking into account the high volatility of cryptocurrencies, casinos based on the Ethereum blockchain technology have a great future.