Blockchain-based transactions have seen an impressive increase over the past couple of years with multiple e-commerce operators introducing its tools in order to provide a safer and much more transparent environment both for their customers and for the regulators. The online gambling industry has already followed in their steps with many websites introducing self-executed smart contracts, instantly signed and securely digitally sealed.
Although there has not been much regulation in this sphere until today, this could be soon changed for the better taking into account the recent news from Malta, Europe’s IGaming hub, approving three cryptocurrency bills, targeted at legalizing and regulating cryptocurrency gambling, offering a legal framework for providers’ registration, certification and legal authorization.
Most importantly, the bills establish a new body called the Digital Innovation Authority to oversee and certify Distributed Ledger Technology platforms, in order to ensure that all the data stored there is genuine and secure.
As soon as it is done, players will be able to rely on an innovative technology certified by the State, ensuring that all bets they place. Moreover, all the odds and transactions are instantly secured by means of smart contracts, which are encrypted, safely stored, and processed by an approved blockchain network.
In essence, this makes an accurate history of all the past events, including financial transactions and odds movements, instantly available with no downtime should any dispute arise. Although all the three Bills have been now approved for the first reading, it will definitely take some time for all the innovations to be fully implemented.
Meanwhile, Maltese authorities are not the only ones to consider regulation of blockchain transactions. On April 27, Gaming Standards Association’s (GSA) has announced its plans to finally launch the operations of a new Blockchain Technical Committee that shall work specifically on integrating and regulating implementation of blockchain technology within online games industry.
With the main focus on blockchain, the committee that was established several months ago, will also study the areas the technology might be potentially applied, as well as work on defining spheres for its further standards development.
The first meeting has been already held in London, where the participants discussed how blockchain might be introduced in both online gambling activities, as well as land-based gaming. Besides, the blockchain was also mentioned to be the “driving force” of the upcoming GSA Technology Forum, which is scheduled to take place later this year.
Blockchain technology is indeed expected to change entirely the online casino industry, as its transaction system is “secure by design” with data protected against interception as well as any other unauthorized involvement.
Smart contracts help to leave almost no loopholes for fraud as all player bets and transactions are processed almost instantly the very time they are deposited. In the end, this might be a win-win situation, when players, legal gambling operators as well as regulating authorities will all benefit from increased transparency, not to mention that players will be guaranteed with both their odds and payouts, while iGaming providers could find a good way to increase their credibility.
All in all, most experts agree that blockchain is about to form the backbone of the modern e- commerce. According to data published by IBM, by the end of 2020 more than a half of all transactions performed by banks will be processed on the basis of blockchain. However, the core principles behind blockchain make it perfect for almost any kind of business management.
The transparency of blockchain’s data trail as well as its ability to process transactions in near real-time shows that it has probably only just begun to unlock its full potential.
Disclaimer: The content of this article is sponsored and does not represent the opinions of Finance Magnates.