Gammastack’s head of marketing explains what blockchain is, and the impact fraud prevention has on esports betting.
Eva Johnson
It’s easy to understand the concept of Blockchain.
Blockchain is a database that stores data or information. It is the way the data is stored and structured that makes the difference.
Data is stored in new blocks, each with a different storage capacity. The data is then connected to the block that contained previous information. Together, the blocks of data make up the blockchain.
Let’s discuss the types of data stored by blockchain. Data can include transactional records, or data about tangible and intangible assets. The assets include, for instance, patents, intellectual properties, copyrights and houses, offices or cars.
Blockchain in Esports
1. Fraud elimination
All participants in the network can see and access this data. These data help eliminate duplicate entries and also enhance transparency, which can in turn be used to reduce fraud.
2. Transparency is more important than ever
Blockchain information is inert. It needs to know the right information when it receives incorrect data. Both the incorrect and correct data will be visible at the end. The visibility of the data increases transparency, and it helps to build trust between players and tournament organizers.
3. Data security at the highest level
The data is stored in blocks by the millions of computers that are part of the network. Even if data is lost, they can be recovered.
4. Prize money transactions automatically
Smart contracts allow businesses to set up specific conditions for transactions on the Blockchain. The conditions are used to initiate automatic transactions. Multiple conditions regarding the prize money can be set up in esports. The winners can be paid automatically when the event is over.
Blockchain and fraud prevention
Security breaches often result from identity theft or card fraud due to the lack of authentication processes and tools.
It can also lead to fraud, such as bonus abuse, multiple accounts, takeovers of accounts, and money laundering.
Frauds can damage a business’s reputation, cause financial loss and reduce its overall revenues.
By securing registration and authentication procedures and supplying them with advanced verification solutions, fraud prevention tools can help businesses in the esports industry to combat and prevent breaches and fraud.
These solutions can include fingerprinting devices, IP analyses, and the use of lights, along with KYC checks that are strict, moderating the sources of traffic coming in, security questions, and answers as well as detection and prevention of suspicious users and activity.
Fraud prevention offers several advantages to operators of esports betting, such as customer protection, minimisation of disputes, reduction in regulatory fines and high-end security.
Compliance: its effect on the esports betting industry
In the past, igaming operators focused solely on AML, IT compliance, and transaction processing. The times have changed.
The landscape of regulatory compliance continues to change and is more stringent than ever.
What is compliance exactly? It means adhering to certain laws, regulations and standards.
Each esports betting site starts out small. When things are going well, the businesses will try to expand into other countries. In order to do this, businesses must adhere to the laws of their respective jurisdictions. There is one catch.
It can be detrimental to the ability of an online betting platform for esports to obtain new franchises and licences if the history or records are not up-to-date. We can conclude that the compliance record of an online esports platform is crucial to its success. The absence of compliance program can also result in the cancellation of the license.
A good compliance program allows esports gambling operators to comply with the different regulations, minimises the risk of criminal or regulatory action and helps maintain their reputation within the industry. It also enables them identify and amend areas that are of concern.
KYC requirements for operators of esports betting
Fraud has always been a greater risk on online platforms than they are in land-based ones. They’re convenient, which is why cybercriminals are flocking to them.
Esports, by its very nature, encourages a lot of purchases and transactions within the game. This makes esports sites attractive for criminals. KYC regulations are now more strict than ever. What is KYC, then?
KYC allows esports betting operators access to vital information about their clients and helps them ensure that they’re not associated or involved in financial crimes, such as money-laundering. Due diligence, which is a continuous process of monitoring and controlling any suspicious activities, takes place even though KYC checks take place during esports betting operator’s onboarding.
KYC helps operators avoid harsh penalties and protects them from fraudulent activity. The KYC helps protect the integrity of platforms and keep them safe for their legitimate users.
