Bitcoins, Blockchains and the next stage of online betting

Over the next few years you are going to be hearing more and more about Bitcoin and blockchain technology in particular. I hope to give a very brief explanation of what these new technologies are and then look at the impact they may have on the future of online gambling. This article is not going to get into the technical details as:

  1. I’m no expert on it
  2. You can research it yourself if you are interested

So what is bitcoin?

Bitcoin is a new type of currency. Known as a cryptocurrency, it allows you to send payments over the internet anonymously and in real time. The best analogy I can think of to compare it to bookmakers is Betfair. Betfair is a peer to peer platform that allows you to bet against other people. Bitcoin is a peer to peer payment system that allows you to send and receive money to and from other people. The main difference is that Betfair is a company that sits in-between the two people and takes a 5% cut of each transaction. Bitcoin is decentralised and not owned by anyone. You can read more about bitcoin here or watch the video below

Bitcoin was invented alongside Blockchain in 2009 and over the years has gone from being worth a few cents to currently being worth $1,700 USD per bitcoin. A bitcoin can be split into much smaller sizes, so if I wanted to send someone just $100 USD, I could send them 0.06 bitcoins. The rise of bitcoin has seen a lot of nerds get extremely wealthy very quickly.

What is Blockchain

Blockchain is the underlying technology that allows Bitcoins to be moved around and verified. It works just like the internet. When you loaded this website, your computer sent a request to your ISP. The ISP then sent this request to a server (another computer) that stored this page and the server sent the data of this page back to your ISP which sent it back to your computer which converted it to what you see now. All of these connections could be routed through millions of different computers all connected to the internet. This is known as a distributed system.

The Blockchain is a distributed database that has a ledger that is tamper proof and continually updated. There is much more to it and you can read more about it here.

The Blockchain is the most important new creation here. Bitcoin is just one way to use a blockchain.

The rest of the article, read from the original post: