Ron Segev, founding partner at Segev LLC, illustrates how the stalemate in the world of cryptocurrency is beneficial for the blockchain technology.
My firm is the first law firm in Canada to have accepted bitcoin. As soon as we adopted this process, it was a game changing for us. It was like magic seeing all those coins come in, at a very low transaction cost, and very high speed.
So let’s talk about what sort of innovations do we expect with blockchain in gaming industry?
People say that it’s the “winter of blockchain” because they are so focused on cryptocurrencies. They took their eye off the fundamental usefulness of blockchain tech. So we are at a great moment right now.
A few examples of the amazing things it can do: critically the notion of a digital asset being immutable, being verifiable, following you where you go, no one owns it other than you. The application of that in a casino space is a no-brainer. It’s no different than walking out of a casino and having a casino chip and knowing that you own that casino chop and you can redeem that casino chip at that property or any sister property. It’s the same idea but it’s in the digital realm, so it’s way more powerful. Many land-based operators start discovering that a casino chip can be transformed into anything: an AR game where I find a digital asset on a casino floor. If I can develop an economy around that asset – other people want it. It will increase in value, and improve engagement with the casino floor. It might move my operation from the land-based to the online sector, or vice versa.
I am glad that you met a lot of advantages from the operator’s perspective. How do you think blockchain will actually increase the consumer experience?
It is going to improve engagement in many ways. A new generation of internet users demanding similarity between the physical space and that of online. They want smooth activity from online to land-based and vice versa. Many land-based operators start moving towards online gaming. The experience of seamless transferability is of great importance. You need a means by which you transact: loyalty points or comp points, etc. That’s ok, but a better way to it is to put those casino points on the blockchain.
What will it take for a critical mass, especially for the online gaming players to actually adopt cryptocurrency?
I think that there’s still a lot of friction in the cryptocurrency user experience. It’s more difficult to open an account on an exchange and buy a cryptocurrency than it would be just using your credit card. But that’s slowly going away. People are developing technologies around that to make that disappear. So adopting or purchasing crypto is a friction point, and then spending crypto is another friction point. But time and time again we’ve seen that as soon as people overcome those hurdles and they discover how inherently superior crypto is to credit cards. So if we can get over those two friction points, I think we’d see a real game-changer. People are still focused on sort of bad old days, 2017 or 2016. They are focused on things like price volatility, perhaps the negative reputation that some cryptocurrencies were getting. You know, the news pieces around money laundering, etc. In truth, any technology can be utilized for good or bad purposes. That actually has nothing to do with the technology. And I think the education piece is a big piece. People are slowly getting smarter to it, and the mad rush to mine coins is becoming a more common feature of our technology landscape. I think people are going to see it as any other way to transact or do commerce.