Without the right technology behind them, crypto gambling operators will struggle to break into the mainstream, says the CasinoCoin Foundation’s director of advocacy John Caldwell
It has been more than two years since a number of prominent crypto gambling projects raised money on the promise of revolutionising the future of the gambling sector via blockchain technology.
For these projects, delivering on this promise has proven a far tougher job than raising money. For most, development has been slow and the user experiences poor. The initial excitement is fast receding as a result.
More often than not, the core of the problem can be found in the technology which, two years ago, appeared to be the answer to just about everything.
The reality is that the blockchains being used by many of these crypto gambling operations simply are not fit for this purpose.
This is the reason for most of the friction points being experienced by those looking to do their gambling on-chain, whether in the form of complicated onboarding processes or five minute waits to load a basic slot game.
Some have chosen to abandon their original blockchains in search of better technology, while others remain, hoping the technology will improve or searching for workarounds.
Sources: https://www.blockchain.com/en/charts/median-confirmation-time and https://bitcoinfees.info/
A different approach
Back in 2017, at the time that many projects were launching ERC-20 tokens on the Ethereum blockchain, we at CasinoCoin took a very different approach.
We launched our own blockchain, based on the XRP (Ripple) ledger, which was designed and built for the financial services industry.
Two years ago this appeared a controversial decision. Ethereum was ubiquitous, and by far the easiest route for launching a new gaming product.
But we saw a number of restrictions. Transactions, while faster than Bitcoin, were still relatively slow, especially for a sector like gambling that is particularly demanding in this respect. Similarly fees were too high to keep every spin or card on chain. In fact, there was a poker product out there that I tried that was actually slower to play than live poker.
Lastly, all of these projects were at the mercy of a network that, when burdened even in the slightest, slowed things down even more.
We turned to XRP because payments in gambling closely resemble those in the world of finance. It demands lightning quick transactions, super low fees, and the ability to scale quickly.
The gaming blockchain
The decision means the CasinoCoin blockchain is fast becoming the blockchain of choice for those looking to launch custom tokens within the gaming space.
The first such token to be announced, Cammegh Token, will be used by Cammegh, the world’s leading supplier of integrated roulette systems, to capture and transmit immutable data from each and every spin of its roulette wheels. Based on the number of wheels they have out in the market, this could amount to hundreds of thousands of transactions a day, and simply would not be viable on a blockchain like Ethereum.
And our most recent partner, a new blockchain-based decentralized public gaming community called GAME.FUND, initially flirted with the idea of using Ethereum, later chose EOS, but finally settled on the CasinoCoin blockchain because it is better suited to meeting the unique needs of a gaming product that is looking to scale extremely quickly.
We foresee several other interesting, transaction-heavy use cases for custom tokens within the gaming space. For instance, the CasinoCoin blockchain has the capacity and low fee structure that makes it both financially and technically viable, for the first time, to move a loyalty programme on-chain. We expect to announce several new partnerships within the gaming industry over the coming months.
Ultimately, on-chain gambling will only succeed if we create a seamless user experience with benefits for players, operators and regulators. And there is certainly no use offering a lesser product than traditional online gaming.
To achieve this, there needs to be a solid foundation. And we – alongside our growing list of partners – firmly believe the CasinoCoin blockchain is placed to deliver.