In a previous couple of years, several crypto ventures began to work on making a gambling token using a cryptocurrency foundation. While individual betting platforms based on cryptocurrency have their shining examples, the need for a token to unite them all was apparent.
Initially, most of these startups were trying to find a one-size-fits-all solution for all payment processing that is often associated with what the traditional financial sector deems a high-risk industry. Some token projects promised to even be able to increase the same token in value, so much so in that many tried to convince gaming ventures that their coins would eventually overcome their gambling revenue.
In this scenario, the casino business was only supposed to be a stepping stone towards the phase where all profit would be generated by the booming tokens. Fast forward to the late 2018 and almost all of the ICOs that promised these miracle gambling tokens are either gone or clinging to their lifelines. They failed to produce a tangible idea, suffered from bad management or had the misfortune of both. But, this is true for the wide majority of ICOs and not just the gambling token niche.
The Key Problem
One of the main problems related to these tokens is the fact that they were all built on the ERC-20 technical standard of the ethereum network. With the ICO craze of 2017, which allowed both bitcoin and ethereum to surge, the desire of most project was to invent the next big token and ride the pump and dump way to the very top of the crypto market list. The actual usability of their token took a backseat at the very best, along with any kind of realistically defined white paper.
For most, if not all, the main milestone was to reach the market as an initial coin offering and watch the money roll in. This does not mean that all of them were fraudulent – potentially, none of them were. However, they did calculate on huge ETH sums from their ICO and the cycle of growth that would follow. Sadly, the party ended as quickly as it started, leaving these ventures with a lot of problems. Secondly, these initiatives had the downside of being tied to the same ethereum protocol.
ERC-20 has a scaling problem and with a network capacity of 15 transactions every one second, it was nowhere near the fiat competitors. For example, the global VISA network deals with an average of 2,000 transactions for the same time period. The scaling issue was also directly connected to the capacity problem. One popular dapp or an ethereum-based application was enough to consume one-quarter of ETH transactions during its peak use time – Cryptokitties. This, connected to security vulnerabilities caused many investors to rethink the standard as the best approach to the universal gambling token.
The Bitcoin BCH Alternative
Thanks to the range of issues related to ethereum, some began considering other cryptocurrencies as the basis for a potential universal betting token. Enter bitcoin BCH network. This cryptocurrency is made to support the scaling of its on-change transaction and offers the ability of massive increase in its transactions.
When it comes to the security features, the network comes with the advantages of the greater bitcoin mining network. Further, there is a strong setup for incentivizing miners and supporting its ecosystem. Finally, no matter what type of transaction is taking place, there is no option for using an off-chain model, meaning that all of them stay off the integral BCH blockchain.
The Prospect of a BCH Gambling Token
Today, there are new ventures trying to use this protocol for the universal gambling token. Yet, the issue repeats itself – is this cryptocurrency also flawed in some way when it comes to its intended use? There is no way of fully knowing before it arrives at the online cryptocurrency gambling domain. But, even if the BCH universal gaming token ventures fail as well, the path and research towards this goal will at least attain the next level of insight and understanding that will eventually lead to a solution.