Blockchain Technology Redesigning the Online Gaming Industry

By CIOReview | Friday, July 20, 2018
75
156
30

Blockchain and Initial Coin Offering (ICO) are here to stay—cryptocurrency experts predict that the technology will not fade away too soon and while most organizations are looking to adopt this trend blindly, blockchain enthusiasts state that for securing as well as improving their business processes, businesses need to get into the bigger picture of blockchain and cryptocurrencies. Among all this hustle, the online gaming or iGaming industry has been exhibiting a steady interest in opting for the technology. For instance, sports betting techniques have become decentralized largely, in order to cope with the governmental organizations to stay in the market. However, as pointed out by experts, online casinos are yet to follow the same steps; the reason behind this being the lack of connectivity between these casinos and governmental entities. Customers might still trust the online gaming websites, but it is generally considered that the independent sites are more prone to counter cyber attacks when compared to government institutions.

It is quite interesting to note that both government, as well as the independent iGaming companies, is attempting to attain customers’ trust in their own ways. Both entities, however, are indecisive whether or not to implement blockchain in their systems. This is somewhat contradictory to the fact that the blockchain technology is leveraged to promote security within the system. Experts believe that the incorporation of blockchain in the iGaming industry will enhance transparency between the participants and the sites while strengthening security with the aid of high-end encryption of data. Furthermore, blockchain also enables direct connectivity between the player and the iGaming brand, which helps establish trust almost immediately, thereby addressing the major challenge in the industry. On the other hand, this trust can be instilled across multiple systems in order to reap the most benefits. Apart from improving the process, blockchain paves the way for the development of more games along with better security and therefore, more players.

iGaming sites are likely to make a wise investment move in case ICOs are incorporated into the system. However, with numerous scams occurring in the ICO space, experts recommend that iGaming companies need to strategize the purpose of investing in ICOs and possess a Minimal Viable Product (MVP), which will help them attain a clearer understanding of the potential value of the ICO along with the future benefits. This also assists the iGaming sites in assessing the space for further improvement. The easiest way to procure an ICO is to tie up with the ones that are capable of promoting security and thereby trust.