As a groundbreaking technology platform, nothing has come close to touching the blockchain's impact on the world. It gave us cryptocurrencies like Bitcoin, revolutionising how we see finance. Non-fungible tokens changed how we view digital asset ownership. Smart contracts will one day dominate the business world. At the same time, public ledger access gave casino players access to Provably Fair Reporting, turning the world of casino fair play and transparency upside down.

However, an aspect of the blockchain that was for the longest time thought to be its exclusive domain was true decentralisation. Thanks to its decentralised nature, the blockchain is the gold standard for safety and security, but the social media app Bluesky is being used to test a decentralised system that does not rely on the blockchain to function.

What Is Bluesky?

Blueksy is a social media platform that was first announced in 2019. Jack Dorsey, the then-CEO of Twitter (now X.com), wanted to see if it was possible to move the platform to a decentralised server system to give its users more control.

As often happens, the experts brought on board by the company to explore this new technology could not agree on implementatio,n which resulted in several years of reporting, proposals and testing of protocols.

In 2021 it was felt that the initiative was making headway, which saw them hire a microblogging expert, Lantian Graber. Graber’s software engineering expertise and a tidy $13 million investment from Twitter allowed her to move ahead with the development of the "Authenticated Data Experiment" (ADX), which would ultimately allow for the blockchain-free decentralisation of this new app.

In October 2021, Graber would incorporate the project, launching an independent business named Bluesky Social. It is worth noting that post Elon Musk’s acquisition of Twitter in 2022, Bluesky and its parent company would officially part ways.

 How Does Its Decentralisation Work?

The blockchain creates its form of decentralisation by splitting all of its data and content into untold micro-segments and disseminating them across all its participating nodes. When changes are made to one data sector, the entire blockchain is updated to reflect that change. While this offers incredible loss prevention and makes it nearly impossible to hack directly, it does come with a considerable power requirement.

The foundation of Bluesky is the Authenticated Transfer Protocol (AT Protocol). This protocol enables a decentralised social network ecosystem, prioritising interoperability. This relationship ensures the seamless exchange of data and user migration between independently operated servers.

By distributing the load across independently operated servers and putting control over the data on those servers in the hands of their operators, decentralisation is achieved with a fraction of the computational power.

They have named this form of decentralisation Federated Decentralisation.

Can Federated Decentralisation Benefit Gambling?

With its fresh approach to decentralisation, the new technology could add value to the online gambling industry in the following ways:

1. Transparency Nutures Trust: Federated servers allow for decentralised moderation policies. Players can interact with casinos or communities aligned with their values, fostering a sense of fairness.
2. Decentralisation Offers Choice: Casino operators could be rated based on their reputation across the decentralised network, and players can migrate to other servers if they believe a platform is unfair or not treating them fairly.
3. Exclusive Casino Communities: Casinos could run their own federated servers for niche communities like high-rollers or specific types of casino games, such as slot tournaments, live dealer games, or regional players.
4. Regional Compliance Servers: Decentralised servers could operate independently within specific jurisdictions, tailoring their operations to local laws. This allows the operator to avoid compliance issues by isolating servers for specific regions without needing a separate casino.

It is not all blue skies and roses; however, the AP Protocol does have some noteworthy limitations:

1. Less Financial Transparency: Unlike blockchain, federated systems do not inherently track financial transactions in a tamper-proof way.
2. No Assurance of Date Accuracy: Federated networks allow for moderation and data deletion, which may not suit all regulatory requirements.
3. Complex Adoption Curve: Decentralisation requires educating casinos and players about new technologies and paradigms.

How Bluesky tech compares to the blockchain:

 The Blockchain Is Still King (For Now)

While Federated Decentralisation has some potential, it is not quite ready to displace blockchain-based cryptocurrency casinos from their thrones. If you want to enjoy the latest casino games, play in exciting slot tournaments, and claim welcome bonuses in Bitcoin, Litecoin, Solana and other high-value tokens, check out our rated and reviewed cryptocurrency casinos.