Blockchain is widely considered to be one of the most advanced technologies of the 21st century, along with AI (artificial intelligence) and VR (virtual reality). But what is this technology? What does it have to do with the iGaming sphere? What can blockchain offer beyond Bitcoin? 1win Partners will talk about all this in this article.
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What is blockchain technology?
Although blockchain is still a young technology, it has already started a revolution in aspects such as payment solutions, regulatory compliance and gaming. If you want to get an idea of the future of the iGaming sector, we suggest you follow blockchain developments closely.
But what exactly is this technology? Simply put, blockchain is a way of recording and storing information, which makes data tampering virtually impossible. The technology does not use a unique centralized record of transactions, but rather a digital record that is duplicated and distributed across the network. Transactions are verified by comparing the information stored in these records (the information is stored in “blocks”, hence the name blockchain). This means that in order to spoof, the vast majority of computers on the network must be monitored. Although this is possible in theory, it is not feasible in practice.
Blockchain and iGaming
It is important to realize that although cryptocurrencies are created using the blockchain protocol, the potential for their application goes far beyond this and remains unexplored.
As for the iGaming sphere, the main focus of applying blockchain technology is working with payment systems. Now we can observe the rapid growth of sites that offer players crypto-casinos and various bookmakers. Furthermore, market leaders have long supported top-ups in various cryptocurrencies (1win Partners is among them).
But everything has a negative side. The main problems with the rigorous implementation of blockchain technology in iGaming are the difficulties of complying with KYC (know your customer) and compliance (anti-money laundering) policies. These policies are particularly strictly enforced in countries where gambling is regulated by the state.
The most striking example is the United Kingdom. The UKGC (United Kingdom Gambling Regulatory Commission) requires to be informed about the introduction of new payment methods. This is necessary to check compliance processes after integrating new payment methods.
And while cryptocurrencies are envisioned and authorized by the UKGC, the UK commission is relentless about the unique challenges that cryptocurrencies entail. Operators must obtain all information necessary to comply, including determining the source of funds. It is also challenging to operate compliance triggers given the fluctuations in the exchange rate of cryptocurrencies, which is much higher than that of fiat currencies.
This all sounds complicated, but in a nutshell, the main difficulty associated with regulation (if we talk about the integration of cryptocurrencies in casinos) is identifying the origin of funds. Transactions in the classic banking sphere are much easier to track, as many processes require identity verification and almost all cryptocurrency wallets are anonymous.
But, as we said above, cryptocurrency is just one part of blockchain technology. Which may not create obstacles, but, on the contrary, improve and advance the iGaming sector.
Some market participants are well aware that blockchain can be used to increase regulatory compliance and player protection.
This technology is used to securely record everything that happens on a platform. Operators can then receive and store reports on player activity, ensuring their privacy, but, if necessary, they can provide the necessary evidence to the competent authorities.
Conclusion
This is just the tip of the blockchain iceberg. We haven’t yet touched on NFT, which is actively and directly used in games. Leave your comments on our social networks and we will definitely release a continuation of this article. Well, to get the best terms of cooperation, write to the 1win Partners manager.
