In this interview with CalvinAyre.com’s Becky Liggero, Adam Vaziri of Quanta Technology Ltd. explains the regulatory benefits of blockchain technology for iGaming operators.
Bitcoin is creating a buzz lately after JP Morgan Chase CEO Jamie Dimon stirred up the hornet’s nest by his unfounded claim that the cryptocurrency is a fraud and is in a valuation bubble that will burst.
One of the concerns why people like Dimon is against the digital currency is the fact that it lacks a financial regulator that will guarantee fair and efficient markets and financial stability. Fiat currencies have central banks to do that while bitcoin, being a peer to peer currency, doesn’t have that so-called middleman.
What these naysayers don’t understand is the fact that the lack of cryptocurrency regulator has already been addressed by the blockchain technology.
Blockchain promotes transparency in the cryptocurrency and allows for smart contracts. It also solves double spending problems that fiat regulators may not be able to do. One of the main features of Blockchain is that it is impenetrable by hackers thanks to the power of the billions of computers protecting it.
Adam Vaziri of Quanta Technology Ltd even touted to be the regulator itself. Vaziri pointed out that the blockchain has changed the gambling industry since it has reduced the impact of compliance.
For an industry that always need to justify doing things correctly, Vaziri said that blockchain is going to change that.
“At the moment, we have a system where companies, which are regulated, keep certain information and have to justify their position to the regulator,” Vaziri told CalvinAyre.com. What blockchain does is it creates an intermediary level of technology where all of that information can be on that layer, which regulator can access to that purpose and the other stakeholder. It completely changes the paradigm of regulation – to an extent, self-regulating.”
Vaziri made the point that blockchain technology brings regulatory benefits for iGaming operators and many operators now offering BTC are actually not regulated at all.
“The main problem is, not just generally in online gambling, you need random numbers to run an online gambling business. You never know if those numbers are actually random. Apart from the face that some point, they’re certified as being random. But they don’t know if they are using the same system,” he said. “What we’re doing with blockchain is making that random number completely noticeable. Anyone can see and check it. Run the process again, if you achieve the same result, then we haven’t manipulated it. So it is changing the relationship with the customers.”