In this interview with CalvinAyre.com, nChain chief scientist Dr. Craig Wright Bitcoin and Bitcoin Cash can transform the gambling industry.
For years, the online gambling industry has been plagued with misguided government policies that aim to protect state-owned gambling monopolies and restrict a citizen’s freedom to decide how to spend their entertainment dollars.
This is the reason why Bitcoin holds particular appeal for the industry, although some operators are still on the fence on how the cryptocurrency can transform gambling. Dr. Craig Wright, chief scientist of blockchain technology and research development outfit nChain, finds the skepticism over bitcoin’s capabilities “quite interesting. After all, the digital currency’s first real application was in gambling.
“Most people don’t realize that the first real applications on the use of the bitcoin and other blockchain networks were poker. This is way back in the distant past,” Wright told CalvinAyre.com. “With bitcoin, you know that the funds cleared, once they’re cleared you can play safely. If you can play safely, the operator knows that the man is there then your fees are lower. And that means you have more opportunity to actually win. And that’s better for everyone—the operator and the player.”
Bitcoin has been embroiled in many controversies and debates, the most heated of which concerns network scaling. This debate has led to the creation of Bitcoin Cash last August 1. Despite being a new coin in the market, Bitcoin Cash has been receiving support from members of the community, particularly those who have been pushing for a blocksize increase. Early Bitcoin investor Roger Ver is a Bitcoin Cash fan himself as he believes it is “much more in line with the original version of Bitcoin.”
Wright said for people in the gaming industry, the question of why Bitcoin Cash is superior to legacy Bitcoin comes down to one thing—lower transaction fees.
“You want to be able to move your money in and out of a game without having to pay a lot of it to someone who’s running the network. The reality is, who do you want to pay? Do you want to pay a network operator to have larger and larger fees every time? One of the [Bitcoin] Core developers was saying thousand-dollar fees would be OK. If you’re going to have a poker game and you’re putting down $500, do you really want to put double what your pot is going to be just to have a game in the first place? That’s important.”