Restoring Trust in Online Poker using Blockchain Technology - News : News
Published on
Update on

Breach of trust has always been a critical concern for players when it comes to online poker operators. The first ever breach dates to as far back as 2001 when PokerSpot, one of the pioneering online poker sites shut down abruptly taking $400,000 worth of player deposits with it. However, the true wakeup call came in 2011 when customers of Full Tilt Poker learned that $360 million in player funds had disappeared. This was shortly after the United States Department of Justice decided to shut down all the major poker sites in the country on April 15, 2011.

In essence, online poker sites can be considered to be banks of some sorts with players depositing money in the belief that their funds are safe. The players trust the online poker sites to process withdrawals and send their funds if they win. Since players cannot rely on government-backed failsafe systems such as the Federal Deposit Insurance Corporation, they have no option but to act on faith and in retrospective, they have more than enough incentives to question that faith.

The Blockchain Revolution

Blockchain technology has proven time and time again that it is here to stay and this is not just because they are the backbone of decentralized digital currencies but also because it has the potential for a wide array of applications across different fields. The basic concept of how a blockchain operates is quite easy to comprehend – it is basically a ledger of transactions. What makes this so special is the fact that is made public with multiple copies, that is, transactions in a blockchain do not involve a centralized third party. Now that we know what it is, how does it help the online poker industry?

Well, the idea of using blockchain on online poker sites involves the utilization of smart contracts instead of depositing money on an online poker site. This way, the players keep control of their own wallets. Smart contracts essentially hold your funds in escrow instead of having your money deposited to a server on any third party – funds move directly between players in a peer-to-peer network.

As such, if you lose in a poker game, the smart contract will distribute your money to the winners, but if you win the smart contract moves the winnings into your wallet. In addition to this, smart contracts have the same properties as other blockchain transactions which means that they are audited by every member of the network. Now, that is something that is worth having faith in.

Already, a number of online poker sites are using blockchain technology to power their operations it has paid off quite well so far as players are interested in finding something that assures the safety of their funds. A great example is Virtue Poker, a poker operator that was born from the blockchain production studio ConsenSys. Virtue Poker is a blockchain-based online poker platform built on Ethereum and it utilizes smart contracts.

Latest Headlines

Rush Street Interactive Partners with Scientific Games for Pa.

Rush Street Interactive which is one of the most accomplished gambling operators in the United States has recently inked a lucrative partnership with global gaming solutions provider Scientific Games. The partnership is primarily geared toward providing top-notch gaming services to the nascent but rapidly growing online gaming market in the Keystone State. That said, customers […]

Penn National Gaming to Furlough 26K Workers and Sell Tropicana

On March 27, renowned gaming operator Penn National Gaming Incorporated announced that it would be implementing additional measures in a bid to mitigate against the impacts of the COVID pandemic. The company’s management stated that the moves were unavoidable particularly because of the uncertainty regarding when things will go back to they were. Therefore, there […]

Pennsylvania’s Online Gambling Revenue to Surge in March

The global gambling industry is one of the sectors that is feeling the pinch due to the effects of the global COVID-19 pandemic. In the Keystone State, things are no different with several retail gambling destinations having closed down temporarily as parts of the efforts to contain the spread of the virus. Even so, online […]

Pennsylvanian Man Wins Massive Jackpot While Self-Isolating

The COVID-19 pandemic is still here with us and most land-based casinos have already shut down their businesses. In Pennsylvania, efforts to contain the spread of the virus have become quite aggressive with calls for the shutdown of most social spaces including the casinos. Now, gamers have had to stay at home and this has […]

Pennsylvania Gambling Regulator Releases February Revenue Figures

On Wednesday, the Pennsylvania Gaming Control Board (PGCB) released the February revenue figures for the state’s gambling industry. Needless to say, the state has one of the most lucrative betting industries in the United States and this has been proven by all the previous revenue reports. According to the state gaming regulator, the existing 12 […]

Similar Stories in Gambling

Evolution’s Live Games Coming to Parx Casino in Pa. and NJ

Greenwood Racing Inc.-owned Parx Casino has been very busy extending its portfolio as it kicks off the new year. Recently, it integrated exclusive gaming content from Everi. As it turns out, that was just the beginning. Last week, the gaming operator announced that it has partnered with Live Casino supplier Evolution Gaming. The two intend […]

West Virginia Speeds Up Online Gaming Plans After Benchmarking in Pa.

It goes without saying that Pennsylvania is currently one of the most lucrative gambling destinations in the United States. In fact, it has grown so immensely that other states have begun to see it as one of the best benchmarks for their gaming industries. The latest state to consult with the Keystone State is West […]

eSports Betting Live in New Jersey, Where Next?

Last month, casinos and racetracks in New Jersey began taking bets on esports tournaments, a move that further expanded the already thriving sports betting industry in the state. Needless to say, esports is a multi-billion industry that has sparked a lot of interest among investors in several different sectors. Esports betting is, therefore, a very […]

PokerStars PACOOP Goes Live in the Keystone State

PokerStars debuted in the Keystone State’s online gambling market about a month ago and already is proving to be the leading online poker platform. As expected, the company has been working very hard to solidify its position as the leader in the online poker sector and its efforts are already being seen by Pennsylvanian poker […]