With the attention rise of blockchain technology, during our mentions in “iGaming Players: Blockchain Technology Impacts” we focused more with the impact blockchain brings to the players, however today we will be exploring more in-depth on how blockchain brings opportunities or even threats to suppliers, third-party organizations, and operators in the iGaming industry.
To stand substantially in the iGaming industry, predictions and advance thinking is the best policy to have, to self-sufficiently discharge from the wheel of generational technology transformations.
OMNI GAMING aims to show more in-depth of the transformations blockchain technology will bring.
Third-Party Certification Organization
In iGaming industry to prove the fairness of the games that’s been created by different developers, to gain player’s trust they often find a third-party organization endorsement to review their coded content and receive a certification to inform players that the fairness of these games is certified. GLI (Gaming Laboratories International), bmm testlabs offer have a very well reputation of certification endorsement review in the iGaming industry.
However, when developers choose to develop their games through blockchain technology, it will be programmed through smart contracts leaving the program contents completely exposed, allowing players to view the game settings themselves. Which means that players will no longer need a third- party organization to determine the fairness of the games.
If this is the case, then the influence of blockchain technology will defiantly become a huge threat to the third-party organizations who offer these certifications.
Developer
The elimination process of investing in third-party organizations for certification is naturally a big advantage in terms of cost savings. But the game software developed with smart contracts can be viewed not only by players but also by the eyes of other competitors! Will the confidentiality of the key technology software that developers originally mastered be delved into the hands of other competitors due to the overexposure of software?
Despite being able to save costs, developer defiantly has a bigger concern towards the overly exposed of their exclusive software developments, which brings a lot more burdens towards themselves. Unless the virtual currency unit could impose sanctions on infringing accounts, or else developers doubts about entering blockchain technology into their games will continuously grow.
Nonetheless, even if these virtual currency units are diversified and individually difficult to integrate. For example, if a developer plagiarizes competitor’s technology in “A” virtual currency and operates in “B“ virtual currency, no matter how perfect “A” virtual currency’s patent systems are , there are still no protection to stop competitors from plagiarizing your technology and use it as their own in other virtual currency units.
Operator
Once when developers decided to take their game in the field of the blockchain, they can directly accept player’s bet, the demand for operator’s services such as register an account, recharge accounts and transfer money will defiantly decrease.
In theory, operators should still have the necessity of their existence based on the perspective of the industrial division of labor. Because after all developers are solely more focused in developing, so naturally an experienced operator could defiantly attract more players and seek for more profit agenda for developers!
The possibility of breaking out of existing business models is defiantly possible. And the character role of the operator may become more like the existence of the portal and be operated based on earning commissions.
Summary
As mentioned previously, we cannot look at this blockchain technology trend with a negative perspective, or be overly alarmed, but be prepared for changes as technology advances and adapt.
According to the current development trend, blockchain technology still has its shortcomings! Regardless of the mention above, multiple virtual currency firms are based on their own political policy, and the distributing process of blockchain technology has a great disadvantage when it comes to the speed process of accounting. For example, financial services of VISA accounts can process up to 10,000 times of services per second; in contrast, the accounting process capacity of blockchain refining only runs seven times per second.
Hence why if you look closer at blockchain technology at a global perspective, there’s not much business that has officially invested in the field of blockchain technology, there is still room for calculations to the benefits and risk blockchain technology brings. Perhaps if more governments, institutions, or even private companies can recognize the development of blockchain technology and invest in this field, then it could truly be a phenomenon impact! But at this point this is just a beginning of blockchain technology, there is still more test of computing power to refine blockchain technology in the iGaming industry.
References:
Sally M. Gainsbury &Alex Blaszczynski (2017), How Blockchain and Cryptocurrency Technology Could Revolutionize Online Gambling
Gaming Law ReviewVol. 21, No. 7
