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Malta Gaming Authority Pioneering the Future with Blockchain
By Shane Addinall Sep 26, 2018 TechnologyMalta Gaming Authority is on the hunt to make Blockchain digital legers a viable way to regulate the cryptocurrency casino industry, in order to up the industry as a whole and set in on course for the future.The Malta Gaming Authority (MGA) is a benchmark in the industry when it comes to jurisdictional online gambling regulation. Fourteen years in the industry has secured them a name synonymous with prestige and things are about to go to the next level for this world-class ‘watch-dog’.
Malta is focused on the cryptocurrency and blockchain industry that has been making ripples in the online casino industry for a little while now.
It aims to harness this digital marvel for safe usage at regulated casinos within its confines.
The regulator foresees easy integration across casino platforms, as the digital DNA of online casino operators stands them in good stead to adapt to the adoption of the digital ledger technology that Blockchain offers.
The Upside of Blockchain for iGaming
Of course, if there is a flared interest for a specific technology, there must be some great advantages to adapting it for the industry, namely: Transparency
Digital Ledger Technology provides a list of transactional records made when transacting via crypto-currency that cannot be altered or meddled with. This will include deposits being made, payouts made, wagers submitted etc.
Access to such data increases the transparency of each transaction, thereby providing the perfect platform for trust.
Hassle Free Transactions
When transacting in cryptocurrency, the need for third-party providers falls away, which means that the hassle of making and receiving payments is minimized considerably.
Not only is this direct form of trade more convenient, but it’s also quite a bit cheaper, as fees are not levied by any financial institution.
Safer
Because each stake made can be proven, the risks involved with financial transactions is completely nullified. The blockchain will catalogue the time and the details of each transaction.
Adaptation to the industry would see an identity verification process put in place, which would reduce the chances of fraud and money laundering considerably, which is a primary initiative of the MGA.
The Downside of the Issue
Of course, not everything is a smooth ride in any industry and as such there are a few snags in adopting Blockchain technology and cryptocurrency casino regulation.
High Volatility
The value of cryptocurrency is hardly ever stagnant. It's either rising or it is falling. Of course, this proves a challenge for casinos, players, and regulators alike. Questions over whether the value of your coin should remain intact from the time of deposit, or whether it should fluctuate with its real-time value or not; these are big hurdles to leap on the way to streamlining this addendum to the industry.
This can be remedied on the player end through the usage of smart contracts, that record all bets and subsequent winnings in real time. This will then ensure that the results are fair and that a player wins in accordance with the value of their bet.
Payout Speeds
The payout speeds for cryptocurrency may take a bit longer. Cryptocurrency is limited quite drastically to the number of transactions that can be transferred per second. This stands in huge contrast to other payment methods.
Where the Bitcoin network may only be able to transact 20 transactions per second, popular payment methods such as Credit Cards can perform in excess of 50,000 transactions per second.
No Centralized Ledger
Not being able to access a casinos blockchain can become a real challenge for jurisdictional authorities like the MGA.
In order for it to work, the Licensor is aware that certain procedures must be put in place that allows the regulator access to the ledgers.
This will probably end up with operators installing a gateway program as a node for regulators to keep a tab on their transactions, especially in the case of complaints lodged by a player.
Workability in a Regulated Market
The eagerness of the Malta Gaming Authority to become the first European Blockchain regulator has caused them to partner closely with the Malta Digital Innovation Authority so that they can make a success of the initiative.
The MGA realizes the way of the future for online casinos, and as such is blazing a trail toward safe gaming in this digital environment.
The aim is to make sure that all parties concerned are protected, including all investors and players alike, while ensuring that the industry thrives at the same time.
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