No other industry has probably embraced cryptocurrency as well as the iGaming industry. It is estimated that half of all Bitcoin transactions are related to online gambling. However, many challenges came with the early integration models for cryptocurrency and iGaming.
In most cases, cryptocurrency was just being used as an additional payment channel used to deposit or withdraw money into the platform. Because Bitcoin transactions are slow and expensive, it did not make sense to create casino games that used cryptocurrency transactions natively. Why would anyone pay $5 for a $1 spin on a slot?
In this article, we look at a modern decentralized solution that aims to integrate cryptocurrency with iGaming in an ambitious new way.
Cryptocurrency, blockchain, and iGaming
There are several clear benefits that blockchain and cryptocurrency have to offer:
- It allows international payments for a fraction of the cost compared to traditional channels. International online casinos offer their services worldwide, and cryptocurrencies like Bitcoin were ideal for such transactions, especially in emerging markets.
- Blockchain, the underlying distributed ledger technology, can help reduce frauds and increase efficiency in operations.
Majorly due to these two benefits, blockchain and cryptocurrency had found their use in the iGaming industry. Today, there are many online casinos and sportsbooks that accept Bitcoin transactions, and some of them even allow you to play games like Poker using your Bitcoin.
Yet, it was extremely rare for any online casino to be completely decentralized, as it simply wasn’t possible before.
For example, how would you manage KYC requirements when you only accept cryptocurrency payments? How would you run fast games like online slots using a technology that processes transactions at a languid pace?
FunFair is an entirely decentralized iGaming platform that integrates cryptocurrency natively into the experience for all the parties involved – the casino operators, affiliate marketers, and the players.
It claims that its platform will provide a superior experience to all industry stakeholders as it leverages modern blockchain technologies to do things that just weren’t possible before.
What’s revolutionary about FunFair?
FunFair plans to revolutionize the iGaming industry by providing fast, low-cost, and user-friendly casino games running on the blockchain platform, which are provable as being fair. Additionally, these games would also carry the same production value as traditional iGaming games, made possible by their revolutionary technology.
The platform is built on the Ethereum blockchain. It has three major components – a combination of smart contracts that enable things like the random-number generation in a proven fair method, a proprietary engine called Fate Channels that allow games to run in real-time within the protocol, and the FUN utility token.
FunFair has an open platform where game developers can design HTML and WebGL standard games that use the decentralized smart contracts coded into the platform. The games run on a Fate Channel, which serves as an off-chain real-time scaling solution that increases transactions’ speed and reduces the transaction costs.
Building on this core technology, FunFair offers a white-label solution that’s ready to go. All an operator has to do is put their branding on it, set up their dedicated Fate Channel server, and that’s it! This reduces the time to set up an online casino significantly.
All the payments are managed by the FUN utility token, which is an ERC-20 token. All casinos using the FunFair platform accept the same token. Once a user goes through the decentralized KYC process in the protocol, they can play on any online casino using the protocol with the FunPass system.
Together, these components create a completely decentralized iGaming platform that can easily rival any traditional iGaming platform while being significantly cheaper to set up and manage.
Cryptocurrency in iGaming and emerging markets
Cryptocurrency payments are widespread in emerging iGaming markets like India. Most of the top-rated casino sites in India allow cryptocurrency payments since international transactions can be costly.
However, the emerging markets also show a lot of promise, and online gambling is catching up in these regions. Ironically, emerging markets like India and Nigeria are also struggling with regulating cryptocurrency. Some fear there might be a complete ban coming in the future.
iGaming has always been at the forefront of technology. FunFair seems like a natural expression of the innovation we’ve come to expect from the industry. The cryptocurrency revolution has already changed many things so far. Still, it also just might end up disrupting the global iGaming industry too.