It’s no secret that online gambling is booming. Over the last few years, we’ve seen steady growth that is projected to surpass $127 billion by 2026. The integration of technology into gambling has attracted whole new demographics of players too. Blockchain, the technology that once underpinned Bitcoin, has found a life of its own and infiltrated almost every sector imaginable. From finance to healthcare, shipping to elections, blockchain has become one of the most disruptive technologies of our time. So what about blockchain gaming?
Integrating blockchain in gaming gives you a competitive edge, makes your operations more efficient, and can even save you money. It also affords an extra layer of security for both you and your players. Interested in blockchain gaming for your startup? Let’s find out more!
How blockchain is used in gambling
The first and most widely used application is cryptocurrency payments. Players make deposits in cryptocurrency and wager in fractions of their chosen coin. All transactions are stored on the blockchain. Cryptocurrency withdrawals can then be made to the player’s crypto wallet. But you don’t have to accept crypto payments to benefit from blockchain in gaming.
Blockchain can form the core of the online gambling operation. In its function as a database, it can store an immutable record of every deposit, wager, action taken by any player on the site. This record contains timestamps and comprehensive metadata that cannot be edited, deleted or tampered with in any way. Users can store their identity details, bank account information, and even preferences in their blockchain file safely and securely.
This concept provides a high level of surety for online gambling customers and operators. The company can prove that it is compliant and has paper trails, and the player enjoys transparency and security.
dApps and smart contracts
Decentralized apps, otherwise known as dApps, are another application of blockchain in the gambling sector. dApps are commonly used for gambling games. They run on blockchain and are designed to operate without any third-party involvement. Some of the most popular dApps at the moment are gambling games.
Lastly, smart contracts– self-executing contracts that rely on the satisfaction of a chain of events, have also found a use case in online gambling. A smart contract can be created for each wager, automatically paying out when winning criteria have been met. You can also use them for identification and onboarding purposes, along with other technologies such as AI.
As you can see, there are various interesting and innovative ways that blockchain can be used in gaming, aside from just cryptocurrency.
Can small companies blockchain in gaming?
Investing in blockchain in gaming doesn’t have to be expensive or difficult. It could be as simple as integrating crypto payments into your site or partnering with a third-party provider. There are out-of-the-box solutions you can buy. Alternatively, you can hire a developer to design dApps for you in house. Either way, blockchain gaming doesn’t need to be complicated.
Key jurisdictions for blockchain gaming
You might be wondering which is the best jurisdiction to set up in. You should consider various factors like company incorporation, account opening, and of course, online gambling licensing. Some jurisdictions have additional blockchain/cryptocurrency legislation you may need to be mindful of.
Curacao is a leading jurisdiction for online gambling startups. The quick company set up times and costs, cost-efficient gambling licensing fees, and a straightforward process make it an attractive choice. Online gambling companies based there can also benefit from great fiscal benefits and easy ongoing maintenance.
In terms of blockchain, the government doesn’t require additional licensing for blockchain gaming companies.
You could also consider Kahnawake. Known for its solid reputation as a gambling licensing jurisdiction, it offers a mid-price gaming license. The requirements are stricter than Curacao, but the Kahnawake license is of great value and can be acquired in a reasonable time.
There is no need to apply for additional licenses or permissions for using blockchain or cryptocurrency.
Malta, dubbed “The Blockchain Island” and well known for its online gambling sector is a great location for blockchain gaming companies. Its license requires meeting several requirements and a sizable investment.
The government has created a comprehensive blockchain and crypto framework that provides clarity and protection. With a welcoming business environment, it is worthy of consideration if you have the budget.
Each jurisdiction is different and may appeal to different operators. Hence, the best thing to do is to discuss with Fast Offshore before picking.
Contact Fast Offshore today
Fast Offshore cannot create a blockchain network for you nor design dApps for your platform. What we can do is help you with company incorporation, bank account opening, payment processing agreement and compliance. Fast Offshore can also take care of corporate structuring to ensure efficient tax optimization. With 23 years of experience in gaming and a solid knowledge of blockchain, we are here to make your life easier, contact Fast Offshore today.
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