Decentralized applications (dApps) are becoming a buzzword almost as popular as blockchain. They’re billed as having potential to revolutionize the internet somehow. The reality, however, is most dApps are presently used for gambling.
Decentralized apps were considered the next step in internet evolution. Housing the applications on the blockchain, and not having a central vulnerable point, really does make them attractive at first glance. But a dApp is only as efficient as the underlying blockchain.
The most popular blockchains hosting dApps and decentralized contracts are Ethereum and EOS, both with positives and drawbacks. The problem is some dApps have over promised and under delivered, similar to the track record of initial coin offerings (ICOs).
The promise of better apps and revolutionary results has given way to another kind of revolution, an unlikely one at best: betting and gaming.
Gambling, Betting, and Gaming
Most of the dApps that do move money often direct users to gambling or betting sites. According to the State Of the dApps portal, seven of the first ten ranked by volume of money moved are gambling oriented.
If we sort the available apps by the number of users in the same period of time, the outcome is bleaker. Eight of ten are oriented to either gambling, betting or gaming. Also, EOS appears to be dethroning Ethereum as the most popular platform to host gambling apps. In fact, the top gambling app BetDice is based on EOS.
Despite having the preference of users, EOS casinos have not been efficient at keeping their funds safe or even having their games “clean” so to speak. Here at CoinSpice, we have reported at least three instances of EOS based casinos being hacked by smart contract vulnerabilities. The amazing thing is, in one instance, a user doubled his money for two days, and the company in charge of the casino said it was “luck”.
The Promise of Decentralized Gaming
However, these gaming alternatives, albeit not as sure as their centralized brethren, offer a clear advantage, anonymity. In the centralized platforms, you need to identify yourself and pass through KYC procedures to gamble legally. For casino dApps, you only need to provide the funds, and the game is open.
In centralized platforms, withdrawals are directly to your bank account. This is a big no-no to some; with dApps, payments go directly to your cryptocurrency wallet instantly.
The thing is, maybe unwillingly, the dApp revolution has become an anonymous EOS based series of unsecure casinos, moving considerable amounts of money online.
CONTINUE THE SPICE and check out our piping hot YouTube channel. Our podcast, Milk, might help sooth that crypto burn. Follow CoinSpice on Twitter. Join our Telegram feed to make sure you never miss a post. Drop some BCH at the merch shop — we’ve got some spicy shirts for men and women. Don’t forget to help spread the word about CoinSpice on social media.