James canning inside bitcoin melbourne final
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James canning inside bitcoin melbourne final Presentation Transcript

  • 1. Bitcoin: The Future of Gambling James Canning Webmaster Bitcoin Betting Guide
  • 2. Bitcoin: The Future of Gambling In the last year there has been $24 billion of bitcoin transactions Roughly 50% of Bitcoin transactions are gambling related
  • 3. Bitcoin: The Future of Gambling Gambling is a $3 trillion per year industry Bitcoin is the fastest growing sector of the gambling industry
  • 4. Bitcoin: The Future of Gambling Gambling is a $3 trillion per year industry Bitcoin is the fastest growing sector of the gambling industry Why? The attributes and characteristics of bitcoin make it suited to gambling. Also the high friction of gambling with fiat currency due to laws and regulations
  • 5. Fiat Gambling for the Customer in Australia/UK Bitcoin Gambling Advantages
  • 6. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) Bitcoin Gambling Advantages
  • 7. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification Bitcoin Gambling Advantages
  • 8. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification • 2 business days for withdrawal Bitcoin Gambling Advantages
  • 9. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification • 2 business days for withdrawal • Now the operator can charge your cc at any time Bitcoin Gambling Advantages
  • 10. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification • 2 business days for withdrawal • Now the operator can charge your cc at any time • Now the operator can sell your information or have it stolen at any time Bitcoin Gambling Advantages
  • 11. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification • 2 business days for withdrawal • Now the operator can charge your cc at any time • Now the operator can sell your information or have it stolen at any time • Now the operator and push market you marketing you don’t want Bitcoin Gambling Advantages
  • 12. Fiat Gambling for the Customer in Australia/UK • 15 minutes for sign up and first deposit if you use a credit card (2 business days if you don’t use a credit card) • Send in front and back of cc, government ID and a utility bill then wait for verification • 2 business days for withdrawal • Now the operator can charge your cc at any time • Now the operator can sell your information or have it stolen at any time • Now the operator and push market you marketing you don’t want • Multiple records available for taxman, banker, spouse, police, et cetera Bitcoin Gambling Advantages
  • 13. Fiat Gambling for the Customer in the USA, China or India • Fee to the operator for depositing less than $1000 Bitcoin Gambling Advantages
  • 14. Fiat Gambling for the Customer in the USA, China or India • Fee to the operator for depositing less than $1000 • Limited deposit options such as western union Bitcoin Gambling Advantages
  • 15. Fiat Gambling for the Customer in the USA, China or India • Fee to the operator for depositing less than $1000 • Limited deposit options such as western union • One free withdrawal via cashiers check per month, $50 for every additional withdrawal Bitcoin Gambling Advantages
  • 16. Fiat Gambling for the Customer in the USA, China or India • Fee to the operator for depositing less than $1000 • Limited deposit options such as western union • One free withdrawal via cashiers check per month, $50 for every additional withdrawal • Deposit and withdrawal times up to 2 weeks! Bitcoin Gambling Advantages
  • 17. Bitcoin Gambling
  • 18. Bitcoin Gambling Advantages Bitcoin Advantages For the Customer • Instant sign up
  • 19. Bitcoin Gambling Advantages Bitcoin Advantages For the Customer • Instant sign up • Free and instant deposits and withdraws of any amount 24/7
  • 20. Bitcoin Advantages For the Customer • Instant sign up • Free and instant deposits and withdraws of any amount 24/7 • Better payouts due to operator cost savings Bitcoin Gambling Advantages
  • 21. Bitcoin Advantages For the Customer • Instant sign up • Free and instant deposits and withdraws of any amount 24/7 • Better payouts due to operator cost savings • Anonymity (privacy, legal, tax) Bitcoin Gambling Advantages
  • 22. Bitcoin Advantages For the Customer • Instant sign up • Free and instant deposits and withdraws of any amount 24/7 • Better payouts due to operator cost savings • Anonymity (privacy, legal, tax) • Provably fair gambling Bitcoin Gambling Advantages
  • 23. Fiat Gambling for the Operator Bitcoin Gambling Advantages
  • 24. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees Bitcoin Gambling Advantages
  • 25. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud Bitcoin Gambling Advantages
  • 26. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Gambling Advantages
  • 27. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Advantages for the Operator Bitcoin Gambling Advantages
  • 28. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Advantages for the Operator • No transaction fees, chargebacks or financial fraud Bitcoin Gambling Advantages
  • 29. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Advantages for the Operator • No transaction fees, chargebacks or financial fraud • Anonymous customers means no KYC and ID fraud Bitcoin Gambling Advantages
  • 30. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Advantages for the Operator • No transaction fees, chargebacks or financial fraud • Anonymous customers means no KYC and ID fraud • Reduced friction means far higher conversion rate, less drop outs (x20!) Bitcoin Gambling Advantages
  • 31. Fiat Gambling for the Operator • 2% transaction fees, 3-9% cc fees • Constant chargebacks and fraud • 99% drop out rate Bitcoin Advantages for the Operator • No transaction fees, chargebacks or financial fraud • Anonymous customers means no KYC and ID fraud • Reduced friction means far higher conversion rate, less drop outs (x20!) • Less need to comply with laws, taxes and licence burdens Bitcoin Gambling Advantages
  • 32. Laws and Jurisdictions
  • 33. Laws and Jurisdictions • There are none
  • 34. Laws and Jurisdictions • There are none • Assume the same legal status as fiat gambling
  • 35. Laws and Jurisdictions • There are none • Assume the same legal status as fiat gambling • You, the gambler are doing nothing against the law
  • 36. Laws and Jurisdictions • There are none • Assume the same legal status as fiat gambling • You, the gambler are doing nothing against the law • The operator is breaking Australian law but is not under Australian Jurisdiction, or are they?
  • 37. Laws and Jurisdictions • There are none • Assume the same legal status as fiat gambling • You, the gambler are doing nothing against the law • The operator is breaking Australian law but is not under Australian Jurisdiction, or are they? Match Fixing • No known cases yet but bitcoin is PERFECT for match fixing by individual players, its is happening or it will happen
  • 38. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet
  • 39. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin
  • 40. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin What Will Law Enforcement do?
  • 41. Laws and Jurisdictions
  • 42. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin What Will Law Enforcement do? • Domain seizures
  • 43. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin What Will Law Enforcement do? • Domain seizures • Server seizures
  • 44. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin What Will Law Enforcement do? • Domain seizures • Server seizures • Physical office raids
  • 45. Laws and Jurisdictions What Has Law Enforcement Done? • Nothing yet • With fiat operators they stop the operators ability to transact, this is impossible with bitcoin What Will Law Enforcement do? • Domain seizures • Server seizures • Physical office raids • (for match fixing) Extremely close monitoring of players
  • 46. Investing in Bitcoin Gambling Operators Anyone can Invest on the Right Side of a Gambling Operation • Just Dice: invest in the house bank
  • 47. Investing in Bitcoin Gambling Operators Anyone can Invest on the Right Side of a Gambling Operation • Just Dice: invest in the house bank • Casino Bitcoin: Invest at Havelock Investments
  • 48. Investing in Bitcoin Gambling Operators
  • 49. Investing in Bitcoin Gambling Operators Anyone can invest on the right side of a gambling operation • Just Dice: invest in the house bank • Casino Bitcoin: invest at Havelock Investments Compare That to the Current Barriers of Entry for Casino Ownership • Entrenched monopoly licences
  • 50. Investing in Bitcoin Gambling Operators Anyone can invest on the right side of a gambling operation • Just Dice: invest in the house bank • Casino Bitcoin: invest at Havelock Investments Compare That to the Current Barriers of Entry for Casino Ownership • Entrenched monopoly licences • Minimum investment amounts, feed
  • 51. Investing in Bitcoin Gambling Operators Anyone can invest on the right side of a gambling operation • Just Dice: invest in the house bank • Casino Bitcoin: invest at Havelock Investments Compare That to the Current Barriers of Entry for Casino Ownership • Entrenched monopoly licences • Minimum investment amounts, feed • Bank accounts and ID verification
  • 52. Provably Fair Gambling
  • 53. Provably Fair Gambling What is Provably Fair Gambling Goal: stop the casino being able to know or decide what the next card or number will be
  • 54. Provably Fair Gambling What is Provably Fair Gambling Goal: stop the casino being able to know or decide what the next card or number will be Uses cryptography and bitcoin logic but does not use bitcoin itself. Is just as easy for fiat currency operators to implement
  • 55. Provably Fair Gambling Definitions Hashes: A long string of characters derived from other data. This is a mathematical problem that is extremely difficult to solve but if it was solved it would give you the data it hashes. If a solution is presented it is easy to backward test it to see if the solution is correct or not. This is known as a one way function
  • 56. Provably Fair Gambling Definitions Hashes: A long string of characters derived from other data. This is a mathematical problem that is extremely difficult to solve but if it was solved it would give you the data it hashes. If a solution is presented it is easy to backward test it to see if the solution is correct or not. This is known as a one way function Seeds: Extra data (a string of characters) applied to the hash which modifies what it hashes.
  • 57. Provably Fair Gambling Provably Fair Card Dealing
  • 58. Provably Fair Gambling Provably Fair Card Dealing Step 1: Site shuffles the deck as normal
  • 59. Provably Fair Gambling Provably Fair Card Dealing Step 1: Site shuffles the deck as normal Step 2: Site provides you with a hash of the shuffle
  • 60. Provably Fair Gambling Provably Fair Card Dealing Step 1: Site shuffles the deck as normal Step 2: Site provides you with a hash of the shuffle Step 3: you provide a random seed that the site cannot see or predict (client side not server side)
  • 61. Provably Fair Gambling Provably Fair Card Dealing Step 1: Site shuffles the deck as normal Step 2: Site provides you with a hash of the shuffle Step 3: you provide a random seed that the site cannot see or predict (client side not server side) Step 4: Your seed changes the shuffle to something neither you nor the site can have known
  • 62. Provably Fair Gambling Provably Fair Card Dealing Step 1: Site shuffles the deck as normal Step 2: Site provides you with a hash of the shuffle Step 3: you provide a random seed that the site cannot see or predict (client side not server side) Step 4: Your seed changes the shuffle to something neither you nor the site can have known Step 5: The hand is dealt
  • 63. Provably Fair Gambling Verifying the Cards Were Dealt Fairly Step 1: The initial deck is laid out
  • 64. Provably Fair Gambling Verifying the Cards Were Dealt Fairly Step 1: The initial deck is laid out Step 2: You check that the initial deck was inline with the hash the site provided
  • 65. Provably Fair Gambling Verifying the Cards Were Dealt Fairly Step 1: The initial deck is laid out Step 2: You check that the initial deck was inline with the hash the site provided Step 3: The final deck is laid out
  • 66. Provably Fair Gambling Verifying the Cards Were Dealt Fairly Step 1: The initial deck is laid out Step 2: You check that the initial deck was inline with the hash the site provided Step 3: The final deck is laid out Step 4: You check that the initial deck was changed in accordance with the seed you provided If these are both the case then you have just played a provably fair hand!
  • 67. Provably Fair Gambling
  • 68. Provably Fair Gambling Cautions The odds don’t change: Fair in this sense does not mean an even chance of winning, it means honesty and true randomness Not end to end trustless: The site can still rip you off in other ways but cryptography has an answer for them as well. If you cant understand it is it really verifiable?
  • 69. Trustless no Account Betting, 0% House Edge? Step 1: Operator generates a bitcoin address for each bet selection
  • 70. Step 1: Operator generates a bitcoin address for each bet selection Step 2: Customers send bitcoin to the addresses as bets on the outcome they represent Trustless no Account Betting, 0% House Edge?
  • 71. Step 1: Operator generates a bitcoin address for each bet selection Step 2: Customers send bitcoin to the addresses as bets on the outcome they represent Step 3: Operator pays out winning bettors back to the address the bet came from Trustless no Account Betting, 0% House Edge?
  • 72. Step 1: Operator generates a bitcoin address for each bet selection Step 2: Customers send bitcoin to the addresses as bets on the outcome they represent Step 3: Operator pays out winning bettors back to the address the bet came from Step 4: Operator exists only as code automating the above steps Trustless no Account Betting, 0% House Edge?
  • 73. 0% House Edge Gambling How is 0% House Edge Gambling Possible?
  • 74. 0% House Edge Gambling How is 0% House Edge Gambling Possible? • Bitcoin eliminates most banking and finance costs
  • 75. 0% House Edge Gambling How is 0% House Edge Gambling Possible? • Bitcoin eliminates most banking and finance costs • Data feeds, bots, decentralised autonomous organisations, multi signature transactions and provably fair gambling disintermediate risk management, market operations and grading, public relations and other functions
  • 76. 0% House Edge Gambling How is 0% House Edge Gambling Possible? • Bitcoin eliminates most banking and finance costs • Data feeds, bots, decentralised autonomous organisations, multi signature transactions and provably fair gambling disintermediate risk management, market operations and grading, public relations and other functions • Censorship resistant decentralised platforms such as Tor, MaidSafe and Namecoin DNS remove the need for compliance and cost burdens that come with it such as licence fees, taxes, know your customer procedures and accompanying fraud
  • 77. 0% House Edge Gambling How is 0% House Edge Gambling Possible? • Developers and entrepreneurs working on it for much less than current casino executives. For the love of it, to innovate and stick it to the man or for a venture capital land grab
  • 78. 0% House Edge Gambling How is 0% House Edge Gambling Profitable?
  • 79. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.”
  • 80. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable
  • 81. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising
  • 82. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising • Paid accounts for premium features
  • 83. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising • Paid accounts for premium features • Leveraging users to cross sell other products
  • 84. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising • Paid accounts for premium features • Leveraging users to cross sell other products • Data selling
  • 85. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising • Paid accounts for premium features • Leveraging users to cross sell other products • Data selling • Things we have not even thought of yet
  • 86. 0% House Edge Gambling How is 0% House Edge Gambling Profitable? “If you are getting something for free on the internet you are the product being sold.” NB. Twitter has a $40b valuation and is not profitable • Display advertising • Paid accounts for premium features • Leveraging users to cross sell other products • Data selling • Things we have not even thought of yet • See social gaming companies such as Zinga
  • 87. 0% House Edge Gambling Gambling Will Never be the Same • $3 trillion is gambled every year in the current paradigm where the customers almost always loses
  • 88. 0% House Edge Gambling Gambling Will Never be the Same • $3 trillion is gambled every year in the current paradigm where the customers almost always loses • When the customer gets just as much entertainment but usually breaks even this will increase
  • 89. 0% House Edge Gambling Gambling Will Never be the Same • $3 trillion is gambled every year in the current paradigm where the customers almost always loses • When the customer gets just as much entertainment but usually breaks even this will increase • Gambling will not be considered such a social ill
  • 90. 0% House Edge Gambling Gambling Will Never be the Same • $3 trillion is gambled every year in the current paradigm where the customers almost always loses • When the customer gets just as much entertainment but usually breaks even this will increase • Gambling will not be considered such a social ill • Bitcoin will take 2% of the gambling market within a year and 5% within 2 years
  • 91. 0% House Edge Gambling Gambling Will Never be the Same • $3 trillion is gambled every year in the current paradigm where the customers almost always loses • When the customer gets just as much entertainment but usually breaks even this will increase • Gambling will not be considered such a social ill • Bitcoin will take 2% of the gambling market within a year and 5% within 2 years • 5% of $3 trillion is $150 billion, bitcoin current yearly transactions are $24 billion, suggesting a bitcoin price increase of 600% to $4000 from gambling alone
  • 92. More Information Bitcoin Betting Guide bitcoin-betting-guide.com Videos youtube.com/user/BitcoinBettingGuide/videos Bitcoin Gambling Board on Bitcoin Talk Forum https://bitcointalk.org/index.php?board=56.0
  • 93. Bitcoin Gambling Questions Questions? “honestly sport betting with bitcoin has made this the most exciting NBA playoffs season ever for me. It’s fun to be able to throw $15 on a parlay and hope for a big win. I don’t usually gamble, and I never knew how to get in touch with the local bookies in my area, but its freaking awesome I can do this with bitcoin and gamble amounts I’m comfortable with.” ~Reddit User: LeTenken