Perhaps there is no other legitimate industry more misunderstood by the mainstream masses than online gambling. Although the idea of the two of the most lucrative industries, the internet and land-based gambling, merging into one goliath entity seems like the perfect business opportunity for investors and proprietors alike, combining the remoteness and impersonality of the internet and the notoriety of gambling throughout the course of history doesn’t seem to have the charisma to win everyone’s heart.
It is quite a challenge nowadays to prove the innocence of a blameless industry suffering from the prejudice of legalization, such as the Internet Gambling Prohibition Act of 1999, and predisposed eyes whose perceptions were shaped by biased news and unreliable hearsays.
After all, despite battling the stigma, online gambling market capital has grown twice from $20.51 billion in 2009 to $51.96 billion in 2018, indicating a steady increase in players’ trust, and is forecasted to grow up to $59.79 billion by 2020 and—even going further—$94.4 billion by 2024 with a compound annual rate (CAGR) of around 10.9%.
Although this is not to say that frauds and scams under the guise of online gambling haven’t victimized a lot of unsuspecting users, but to say that the entirety of the online gambling industry is illegitimate takes away the chance of honest businessmen to prove that online gambling is no different than any of the industries participating in the market.
Faireum, a blockchain company, utilizes the advancements of the blockchain technology and cryptocurrency to reclaim the dignity of online gambling as a legitimate industry with a sustainable business model.
By taking advantage of the blockchain’s complete transparency behind its programming, Faireum aims to reclaim the people’s trust by making the structure behind its features accessible to everyone from its game logic to all its ecosystem protocols.
Having its own token, called FAIRC, users are able to convert fiat money and other crypto, and use them for placing stakes in participating on Faireum’s official gambling platform as well as availing Faireum’s blockchain services. With this tokenization, Faireum claims that it will lessen transaction costs and eliminate delayed payouts by abolishing intermediaries in place with a completely automated and trust-free system.
As the development of their ecosystem continues, they plan to release software development kits (SDKs) for online casino proprietors to be able to adopt Faireum’s own official blockchain-based games as well as create their own games built on top of Faireum’s very own independent blockchain, opening to everyone the opportunity of having trustworthy tech and businesses that are sustainable even outside crypto.
Provably Fair Game Logic
Simulating real-world randomness in a computer, like that of rolling dice in craps, pulling numbers in lottery or drawing cards in blackjack, is a complicated mathematical process. As a result, no one knows how genuine the player odds are vis-a-vis the house edge behind the platform’s game logic, as compared to its real-world counterpart.
The Zero Random Algorithm (ZRA) is Faireum’s own Random Number Generator (RNG) that serves as their answer for the flawed game logic of traditional platforms. As Faireum explains, the ZRA is an internal RNG built on top of their blockchain and every number generated from the blockchain is validated by a Zero-Knowledge Proof protocol to determine whether each number generated is indeed random. This algorithm will be the engine behind Faireum’s official chance-based games.
All of these following developments will be available to the public, as Faireum claims, for a mutual business-customer trust.
A Service-Based Business Model
According to NewZoo, mobile games account to 51% of the $137.9-billion Global Games Market and is expected to grow +25.5% each year. This alone, aside from profits gained from house edge, is already a good opportunity for proprietors and developers to create Faireum-powered DApps and ensure a return of investment.
Faireum sees a sustainable business model where their blockchain and its underlying technology is considered a service. This is their solution to maximize each player’s odds and minimize entree fees while at the same time ensuring a sustainable business for providers.
A Sustainable, Dignified Future
Creating sustainability is often the main problem being faced by proprietors. As a result of desperation, some resort to unjust practices for the sake of profit and some even turn to completely deceptive means as an easy way out. Unknowingly, this is just a slow severance of public trust which would soon lead to the death of an industry. With the power of blockchain technology, Faireum believes that it can reverse the damage brought by the stigma towards online gambling by presenting it as a completely honest and transparent business model with clear goals. With this call to action, Faireum envisions the recognition of free trade rights of legitimate online gambling industries by educating the mainstream masses on the innovative technologies that make blockchain irrefutable, allowing for such industries struggling for trust to reclaim their dignity once more.