Blockchain, along with machine learning and reality, is considered one of the most advanced technologies of our time . What exactly does this mean, and why is it important? The technology and the solutions based on it are already revolutionizing areas such as payment systems, compliance and even the process of gaming, although it is still quite young. Keep reading if you want to learn about the future of the gambling industry.
What is the technology of house wiring?
In simple words, wire is a method of recording data that makes tampering virtually impossible. The technology uses a digital transaction log that is duplicated and distributed throughout the network, rather than relying on one centralized transaction register . To successfully falsify records, a large portion of the computer network must be monitored, as the transaction is verified by comparing the information in these logs (which are stored in sequential blocks, origins, and names). Although this action, called “51% attack”, is actually impossible in large networks such as Bitcoin, although it is theoretically possible.
Blockchain and compliance rules : it is important to remember that while connectivity is the protocol on which cryptocurrencies operate, its application is much broader and is still not fully understood.
When it comes to the gambling industry, the focus is on smart systems. We observe the rapid growth of platforms used by players in crypto casinos and sportsbooks. Otherwise, there may be problems in complying with KYC (Know Your Customer) and AML (Anti-Money Laundering) policies, especially in highly regulated jurisdictions.
For example, the UK Gambling Commission’s (UKGC) lead gambling commission requires licenses to report the introduction of new payment methods to the Commission and to review AML processes after they have been implemented. The UKGC poses unique challenges related to cryptocurrencies and their use as payment methods. Licensed operators must provide all necessary information to comply with the regulator’s requirements, including to determine the source of funding. Given the change in the exchange rate of the dollar compared to fiat currencies, maintaining the AML principle is an additional challenge.
In fact, the main problem with cryptocurrency regulation is that it is difficult to determine the source of funds. It is much easier to track transactions in a traditional banking infrastructure, as a person’s identity must first be established in order to open a bank account. Crypto wallets maintain anonymity. This makes the sources of resources traceable but anonymous, which is not suitable for AML verification.