By Makkie Maclang
The second episode of new CoinGeek series Hashing it Out with Becky Liggero offers viewers a chance to hear from the Bitcoin creator himself, nChain Chief Scientist Dr. Craig S. Wright, more popularly known as his pseudonym Satoshi Nakamoto. Dr. Wright talks about how the Bitcoin concept was created with the gambling industry in mind. Billionaire and philanthropist Calvin Ayre once said, “when Craig talks, you listen.” And people, especially gambling operators and developers, should definitely listen to the genius behind Bitcoin.
“Bitcoin is the first digital currency with tracing. With the ability to have a ledger that allows people to find out where the money came from. That’s the real distinction that no one’s talking about. It is the first traceable electronic money system,” Dr. Wright said.
What Dr. Wright is talking about here is the blockchain technology used by Bitcoin to record all transactions in a chronological manner. The system provides transparency, security and immutability of data due to its decentralized and distributed nature. This means that there is no one king that rules the system and all miners or nodes on the network have a master copy of all data updated in real time. So even if one miner gets hacked and data manipulation is attempted, all others need to agree to the change first before it is validated and enacted. Because the blockchain is also public and pseudonymous—not anonymous like BTC—the record of transactions are verifiable and traceable.
“So what we can do with identity is create pseudonymous linkages so that people on the public blockchain don’t see who you are, but you can prove your identity and AML and full ‘know your customer’ requirements can all be satisfied every time you use any payment, instantly… When you pay, it can all be recorded, it can be a complete audit trail, simplifying the reporting obligations of the casino and also giving you peace of mind, because if something goes wrong, you now have proof of what went wrong,” Dr. Wright explained.
To clarify, when Dr. Wright says “Bitcoin,” he is referring to Bitcoin SV (BSV) as it has successfully restored the original Bitcoin design, enabling a rock-solid foundation that developers can build on, as well as uncapping the blockchain’s data blocks to allow for unbounded scalability. Simply put, it means that the theBSV blockchain can accommodate massive amounts of data as each data block on the chain increases its capacity, also allowing for low-cost microtransactions to become possible. This is why online gambling on blockchain absolutely makes sense.
“Think of how many times people pull a lever a second in somewhere like Caesars. Now extend that out to a global system where there could be people doing virtual slot machines globally for a tenth of a cent slots. How are you going to actually do this in a way that can be managed and secure if you’re getting a million potential transactions a second?”
Scalability is definitely the answer; and unscalable networks like BTC and ETH cannot compare to the capabilities of an infinitely scalable blockchain, such as BSV. The test network has already processed more than 9,000 transactions per second, while the current average fee per transaction is at a tiny 0.0025 USD. BTC’s current average is at $7.27, while ETH is at $5.73. Imagine the huge difference.
It is not practical at all for gambling operators to build their systems using these two, which are two of the most popular digital currencies at the moment. And as BSV continues to scale, it can process an increasing number of transactions until it is able to offer nanotransactions, which are expected to lower the transaction fees even more. This is the true power of the original Bitcoin that makes online.
