Quanta’s CTO Kostantinos Farris: Gambling on blockchain

Quanta’s CTO Kostantinos Farris: Gambling on blockchain

Wednesday, May 9, 2018 Posted by Luke Massey
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Farris believes operators and suppliers should embrace blockchain

Kostantinos Farris, CTO at Quanta, spoke to TotallyGaming.com about why blockchain is the ideal platform from which to build online casino, sportsbook and lottery products.

The global online gambling industry has long had reputation issues. Despite the activity being heavily regulated in a large number of markets around the world, there still remains considerable scepticism among consumers.

This scepticism covers everything from the fairness of games, to the way operators hold player funds and protect those at risk of developing habitual patterns of play. 

Most of these concerns are unfounded, and regulators such as the Isle of Man ensure that online gambling operators and suppliers are compliant with internationally recognised gold-standards. That said, recent headlines suggest more needs to be done; the UK Gambling Commission has fired a warning shot at 17 operators over their anti-money laundering processes, for example. 

The growing scrutiny comes at a time when blockchain technology and cryptocurrencies such as Bitcoin are also making the headlines. We believe the blockchain technology provides the perfect solution to many issues being encountered by the current operators using more traditional technology. Indeed, the blockchain is the ideal platform from which to build online  casino/sportsbook and lottery products. 

This is because the blockchain delivers superior security, transparency and accountability than current online gambling platforms. Of course, there is equal scepticism surrounding the blockchain and the stability of cryptocurrencies at present. This needs to be overcome if more online gambling operators and suppliers are to embrace the technology, but we believe it is simply a matter of education.  

With that in mind, there are three key benefits that blockchain can provide the online gambling industry, and how they can help overcome reputation challenges and drive consumer trust. 

Data secured: Blockchain technology provides increased data protection as transactions can’t be altered by a third party. It also helps when it comes to holding player funds; there is a clear record of the deposits and withdrawals made, making it almost impossible for operators to use player funds to run their businesses. 

Systems online: It facilitates better system availability as the technology is not susceptible to DDoS attacks or technical breakdowns. This is because there is no single point of failure. This, in turn, means that all the necessary player protection tools are always available and 100% effective. 

Transparency: Because the blockchain ledger is public and open, anyone can inspect it to ensure that it is working as it should. This is particularly effective at combating money laundering and fraud, an area the UK Gambling Commission is keen to see operators improve. 

Here at Quanta, we have developed an online lottery on powered by the Ethereum blockchain, which we launched in front of a packed crowd at last month’s ICE Totally Gaming. Lotteries are the most accepted and trusted form of online gambling, but consumers still have credibility questions such as “are the tickets and lottery real”, “Is the RNG really random and secure”, “is the jackpot really accumulated in one pool” and “do funds really go to good causes”.  

Blockchain allows us to answer these questions. For example, our technology utilizes smart contracts for tickets sales, the selection of winners and prize payouts, thus ensuring fully autonomous, transparent, manipulation-proof gaming. In addition, our lottery is provably fair, allowing us to deliver unprecedented trust and excitement to players all around the world. 

We back this up with our licence from the Isle of Man – one of the most stringent gaming regulators on the planet. Our technologies were also tested by independent auditing lab, NMi. 

Sure, we are early adopters of the technology. But we already stand as proof of its ability to deliver trusted, secure online gambling products to the masses. And if the global online gambling industry is serious about making headlines for the right reasons, then operators and suppliers should take a very serious look at blockchain technology. 

I would say they should be gambling on the blockchain, but really there is nothing to gamble on. The blockchain "never lies" and is the future of the global online gambling industry.

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