Blockchain technology is not yet “mature” enough to be successfully utilized by iGaming companies, according to one expert in the field, with limitations on scalability and the number of transactions recorded per second a major barrier to its widespread implementation.
Speaking at the 10th iGaming Asia Congress on Wednesday, Paul Polterauer, the CEO and co-founder of Herocoin, said the technology still needs more time to evolve in order to meet the needs of the gaming industry as a whole but that long-term the two appear to be a perfect match.
“Blockchain is at the beginning now,” Polterauer said, noting that upcoming technological updates could trigger its expansion. “As the technology matures in the next years, the use of blockchain in the gaming sector will increase.”
Blockchain is a technology that allows for the encrypted exchange of information peer-to-peer in distributed environments, which makes it ideal for the creation, validation and distribution of electronic currencies.
Polterauer highlighted that the main advantage of blockchain technology to the gaming industry was an increased levels of trust and transparency among users, as the structure of the system is open and allows operators to skip middle parties.
iGaming Asia Congress presented several sessions tackling the relationship between cryptocurrencies and gaming on Wednesday. It also delved into ICOs (initial coin offerings), the processes to issue new cryptocurrencies to the market.
ICOs have been at the center of global financial discussions during the last year as a series of very successful offerings spurred a worldwide wave, albeit one that brought mixed results.
According to Polterauer, gaming operators need to understand that ICOs are not just about getting money – they also involve “building-up a community” that supports the distribution of these new “currencies.”