Have you ever imagined living in a world without gambling scams? This seems almost impossible more so considering the number of cases recorded involving gambling scams. But this is not to say that it can’t be achieved because it’s the latest idea to be tested on the Ethereum network. This year has started well for Ethereum, breaking the record in terms of both its price and value which has led to many investors wanting to get a glimpse of this amazing network.
At the end of April, a group of big companies united to formally launch The Enterprise Ethereum Alliance, with the aim of developing Ethereum into an enterprise grade blockchain. This group is comprised of companies such as British Petroleum, software developers Microsoft, bulge-bracket bank JP Morgan, among others. This shows that the platform has been in the news lately because of its increasing enterprise use. But now developers think the Ethereum platform can be useful in protecting users from gambling scams by ensuring those running them are doing so accordingly.
A good example would be DAO.Casino: this is a project based in Russia that’s concentrating on building a decentralized platforms for gambling games. Users — developers or players — are rewarded for participating in the platform and Ethereum comes in to distribute funds depending on the value they bring to the system. DAO.Casino certainly has laudable intentions, but it must be licensed, meaning the regulators have to approve it. Many have asked a lot of questions on online gambling regulations and there are signs that regulators are only in the early stages of thinking about blockchain technology and how it can be used to fight gambling scams.
Most regulators have only issued warnings to gamblers on the use of digital currencies, but have not issued specific comments on the use of blockchain technology. Take for example the European Commission. Through its spokesperson, they told Coindesk that it doesn’t have a position on using blockchain technology as a way to regulate online gambling. Similarly, the UK Gambling Commission (UKGC), through its executive director Tim Miller is quoted as saying that for consumers in Britain to remain safe from scams, they should check they are gambling on an operator licensed by them. So the million dollar question is, should consumers trust Cryptography or authorities?
It’s no secrete that gambling scams are becoming a problem all over the world, but it’s still unclear how much of a problem they really are. Stats have shown that 29% of the gambling market is now online, but these stats don’t reveal the amount people affected by online gambling scams. DAO.Casino founder described the traditional gambling infrastructure as being opaque and too far closed off. The world has seen a boost in online bets placed but there are allegations in some countries that some betting sites are using software to curtail their winnings.
Looking at DAO.Casino blockchain alternative, it may well be the future of online gambling free from gambling scams. This is because developers create games on smart contracts on the platform and after that there’s a more democratic review.