It has been almost three years since blockchain technology and cryptocurrencies first came onto the radar of many involved in the igaming industry.
In that time, the conversation has progressed significantly, from an initial educational focus to a point where many operators and suppliers now have the expertise to consider innovative new ways in which this technology can benefit them.
Here are five areas where the most exciting developments are being made.
1. Random number generation (RNG)
Random number generators (RNG) are at the foundation of the vast majority of casino games. Yet very little attention is given to this critical mechanism. Currently, most sit on servers and are often opaque to both player and operator.
This is a missed opportunity to show players that games are fair and empower operators to ensure everything is working as it should.
The blockchain is the perfect host for a next-generation RNG because it offers transparency, speed, scalability and security. Results can be immutably stored, ensuring players and operators can guarantee that everything is above board.
2. Trust
This leads onto the second big issue where blockchain technology can aid the gambling industry: trust.
It is no exaggeration to say that the gambling industry is undergoing something of a trust problem. In a recent survey from the UK Gambling Commission, only 29 percent of respondents agreed that gambling is conducted fairly and can be trusted.
Meanwhile, 43 percent of respondents said they thought gambling was associated with crime.
And when asked for their most important factor when selecting an operator for the first time, 24 percent said it was the reputation of the company for being fair and trustworthy, second only to best odds (27 percent) and above bonus offers (15 percent).
With blockchain technology, we have the ability to offer provably fair gaming where players know they are not being cheated, and this is a powerful tool for building trust.
3. Payments
Payments remain one of igaming’s biggest challenges, and cryptocurrencies can offer an innovative solution to the deposit and withdrawal process.
Much has already been said about the advantages this technology confers in regards to low transaction fees, speed of withdrawals and reduction on chargebacks.
And today it is easier than ever for operators to integrate deposits of several popular cryptocurrencies via third-party providers — many of which will even convert cryptocurrency payments into fiat and back.
4. Audience
One of the defining challenges our industry faces over the coming years is how we go about engaging with a younger audience.
The core user of online casinos and sportsbooks is getting older, and reaching a younger, digital savvy customer means offering a product that can compete against the full spectrum of mobile options they now enjoy.
Blockchain technology and cryptocurrencies offer one route into this.
But those who succeed will not simply integrate crypto payment options.
Instead, they will use blockchain technology to create tokenized, gamified incentive and loyalty infrastructures that resonate with the next generation of casino player.
5. New markets
Online gaming was once very focused on a handful of markets in Europe and North America. No longer.
This is a truly global industry, with new international opportunities emerging all the time.
Blockchain technology has an important part to play in many of these markets, particularly at a time when regulators are in the process of rolling out new online gaming frameworks across the Americas and beyond.
The form this takes will vary depending on jurisdiction. A handful of regulators, including the Isle of Man and Malta, have been making encouraging progress towards suitable blockchain gaming legislation.
The markets that strike the right balance will enjoy benefits across the fields of engagement, trust, payments and more.