Cryptocurrency Casino Also Provide Enhanced Data, Study RevealsPublished November 9, 2020 by Lee R
The decentralized application of cryptocurrency has yielded key research benefits to prevent problem gambling.
A new dimension of behavioral analysis has been derived from the blockchain technology that supports cryptocurrency—and it has the chance to make online gambling that much safer.
The new wave of data has been launched by a new first of its kind study from the University of York Department of Computer Science analysing gambling transactions taking place in ethereum-based cryptocurrency casinos.
Identifying Problem Behaviors
By identifying extreme behaviors with the potential for financial harm such as unsustainable player spending, the advanced approach is expected to lead to better consumer protection tools.
Blockchain Derived Data
Blockchain technology, the technology upon which cryptocurrency is based, can at the same time generates unique and enhanced spending behavior through transaction data for players using cryptocurrency to play.
The codes running the cryptocurrency casino games are stored on the same public ledgers as leading cryptocurrencies Ethereum and Bitcoin; with these protocols used to process payments and calculate game outcomes.
The Study Algorithm
The unique study featured an algorithm developed by researchers to extract and decode transaction data from the Ethereum blockchain.
Scope of Work
The study focused on over 2.2m transactions from 24,000 unique addresses on three applications operating on the Ethereum cryptocurrency network.
By observing simple casino type games of chance such as dice rolls and coin flips, researchers found that that average overall spend among decentralised gambling applications is lower; but the most heavily involved players on blockchain applications spend substantially more.
In the study of blockchain players, the most heavily involved bettors wagered an average of 1,000 ETH (equivalent to approximately $100,000), representing a substantial increase over the median 1.1 ETH (~$110 at time of study) presented by the majority of bettors.
Key Bot Distinguishment
Researchers were also able to distinguish between real players and automated bots, which are commonly used to artificially inflate perceived popularity of applications or win jackpots that statistically qualify for pursuit.
Source of Study
At this point, additional enhanced data to detect and prevent problem gambling is a vital solution which casinos supporting online cryptocurrency can provide the greater iGaming industry.