At a value of 47 billion USD per year, online gambling is a cash cow whose time to enter the blockchain has arrived
FunFair is an online casino platform who has a home on the Ethereum blockchain. They hope to disrupt the online casino world in much the same way that other industries like finance and banking have been transformed by blockchain technology.
Before we get into the question of what is FunFair, let’s address what it is not. FunFair is not an online casino. It’s a platform for developers or entrepreneurs to open their own online gambling casino using the FunFair gaming system. We’ll get into some use cases a little bit later.
The team behind FunFair has a very lengthy and serious pedigree. The CEO Jez San has been a game developer since he was in his teens in the early 1980’s. He has real world experience with online casinos for the last two decades. His CTO is Jeremy Longley who co-founded PKR.com, a 3D gaming site.
How To Buy FUN
So you’re interested in buying FUN? Currently, there is no way to buy FUN directly with fiat, so the best way to buy FUN is to first purchase Ethereum, transfer it to your chosen trading platform and change it to FUN. We’ll show you how.
2. Once your account has been created and confirmed, log into your Binance account. Once you have logged into the account, go to the menu, click on the funds section and then deposit on the drop down bar.
3. Once you’re on the Deposit section, click the drop down menu labeled “Select Deposit Coin” and look for Ethereum, or type ETH and select.
4. This is your Ethereum Deposit Address, we have chosen Ethereum instead of Bitcoin due to the lower fees and transfer times. Next we’re going to look at buying Ethereum and depositing it into your Binance account.
1. First change the Buy option from BTC to ETH for USD and then choose your amount.
2. When you have chosen the amount of Ethereum you want to purchase (A minimum of 0.05 ETH is required), you will need to register and confirm your CEX account and payment details.
Once that has been confirmed and the ETH has been deposited into your account, we will then need to move it over to Binance.
3. Select the Withdraw option at the top of the site and select Ethereum as your currency. You will then be given a field, where you will add a wallet. This is where you can transfer your money to Binance.
4. Go back to your Binance Account and copy the alpha numeric code under your Ethereum Deposit section and paste it into your Ethereum Withdrawal section on CEX.io. Confirm that this address is correct and press “Withdraw“.
Your Binance account will now be credited with Ethereum.
2. On the trading platform, select the ETH section and use the search function to search for FUN/ETH and confirm.
3. On the FUN/ETH trading section you can now choose how much FUN you want to buy with your Ether. Once you have chosen your amount, press Buy FUN and place your order.
Once your order has been fulfilled, your account will be credited. Congratulations you’re now the proud owner of FUN.
What Does FunFair Do?
The FunFair platform is trying to solve many of the problems that blockchain technology creates for online casinos, as well as the problems inherent in the traditional online casino model.
For starters, with a traditional online gaming site hosted on a central server, there is an enormous trust issue. A user has to submit their financial information to the casino and trust that their information is secure there. They then also have to trust that the casino has actual odds posted and won’t manipulate the games to hedge those odds. Lastly, they have to trust that the casino will actually pay out the winnings and is not going to be a scam.
Since the blockchain is trustless and transparent, the trust issue disappears. Every transaction is verifiable and odds are there for everybody to see. In FunFair’s case, though the transactions are transparent, the user remains anonymous for an added layer of trust.
Where the blockchain usually falls flat when hosting an online gaming site is twofold.
One, the transaction speeds. Since blocks need to be verified and consensus built, that takes time. It isn’t uncommon for a simple hand of blackjack to take several minutes to complete.
Two, the transaction costs. Especially considering the amount of gas used on the Ethereum blockchain to verify blocks, the cost of every transaction is not inconsequential. A user would have to pay a transaction fee to load the game, make a bet, cash out a bet, etc. This could potentially match the amount of the bet, taking a considerable chunk of the winnings from the user.
The solution that FunFair uses for the first issue of speed is handled by a Fate Channel. This is a State Channel that handles the gaming off the actual chain. The transactions on the blockchain happen at the beginning and end of the game. Since there could potentially be hundreds of bets during a game, you can see how essential this is to keep the games moving.
FunFair uses a messaging system between the FunFair client and server. The downside to this is, of course, that there is something of a central server at play here. The alternative of heavy transaction fees and processing times, however, makes it a necessary evil. They will eventually implement a totally serverless peer to peer system.
The Fate Channel also applies to the second issue of transaction costs. Since the transactions only happen at the beginning and end of the gaming session, those are the times when a user would have to pay the transaction fees. Eliminating the fees for every transaction is logical in its own sense, but especially when considering that as ETH value continues to rise, so will the transaction fees.
Use Cases of FunFair
As already mentioned, FunFair is making a platform for others to easily and cheaply launch their own online casino.
Operators and developers will be able to launch a fully customizable online gaming casino in just two clicks. They could be individuals or organizations. The barrier to entry to starting one’s own casino could not be made any simpler. In addition to the two click set up, the blockchain also makes it easy for anybody to deal with the traditional Know Your Customer rule associated with a traditional online gaming casino since the transactions are transparent and trustless.
Here are a few examples of the use cases and benefits that could result from FunFair being successful.
A person who likes to gamble online, yet, has no idea what the blockchain is or would even care to know would be attracted to a FunFair casino. One of the reasons this person has delayed or stopped gambling online is because of the fact that they must give the website access to their credit card information.
The use of a wallet with FUN tokens (the FunFair native coin) means that there is no way for his credit card to get scammed and that the payout of any winnings will be instantly received to the wallet. The fact that it is fun to play and easy to use means that person is likely to keep coming back.
A big brand that has a young, male demographic may decide that another good revenue stream would be to market their own casino to their base. Since it is so easy to get started and the franchise fees so low, they could have their own casino customized to the tastes of their audience up and running in no time.
They have many events that keep their customers coming back for more.
A developer that loves creating games and has a big social network of other game developers may want to open his own casino to simply play against his peers. Again, with customization, he can tailor all of the games and the layout of the casino that fits well with what he and his friends are looking for in a gaming experience.
Another example of an out of the box idea, is a non profit that does typical fundraising for a cause may want to try an online gaming site to give donors a fun way to give back to their favorite charity. Rather than run fundraisers that cut into the proceeds meant to go towards their cause, they can run a cheap and easy to set up casino that can be generating donations 24 hours a day.
These are just a few ways that the FunFair platform could be used by just about anybody.
How Does the FUN Token Work?
Like most native altcoins, FUN is the only way to interact with the smart contracts on FunFair based platforms.
Its primary function will be to buy the chips to play with. All best must be in FUN.
The token will also be used to pay the game creators of FunFair.
All fees generated by the casino will be paid in FUN. So, setting up a casino, buying tokens, paying out tokens etc, will all require FUN which for the first two years after launch will be burned.
Licensing fees paid to FunFair by developers will be paid in FUN and any revenue generated by their casino will be paid to them in FUN.
The more casinos that get created, the more users signing up and using a FunFair, and the more affiliates that drive traffic to the casinos, the more value the token has as it is deflationary.
What makes this even more interesting to somebody using the casino rather than simply investing in FUN, is that if they were to buy tokens when the value is low and receive the winnings to their wallet when the value is high are padding their winnings even more. Of course the reverse can also happen, but that is the nature of altcoins. If somebody is already gambling then chances are pretty good that they understand this aspect.
As blockchain technology gets more refined, we are seeing many of these types of projects more and more often. Platforms that try to solve the deficiencies of the blockchain will be rewarded by mainstream use which makes it all the more likely that the blockchain will take over the internet and change life as we know it.
That may sound like hyperbole when considering we are talking about an online casino, but the results go beyond blackjack and baccarat. The problems solved in this scope can be used to solve other problems in other industries. Even if you are not a gambler, this token deserves to be watched closely in the coming months.