The promoters behind BetDice (DICE) are asking “will social media gambling payoff?”
Fascinatingly, BetDice has a social media casino it calls DICE up and running. In fact, DICE offers social media versions of classic casino games including Texas Hold ‘em poker, Craps (called DICE), and Baccarat. Some of these games are up and running now.
Thus, BetDice is already offering something people will pay money for. Additionally, BetDice is using the first EOS-based cryptocurrency they design for gambling: BetDice (DICE).
BetDice (DICE) Experiments with EOS-based gambling
Theoretically, EOS’s greatest advantage is its potential for scalability. EOS can process more transactions a second than Ethereum (ETH) because of its architecture.
Notably, EOS was processing 51 TPS on 2 June 2019, the EOS Network Monitor estimates. Meanwhile, Ethereum creator Vitalik Buterin admits his blockchain “can only process 15 transactions per second” (TPS), Invest in Blockchain reports.
Consequently, the payment mechanism for Ethereum-based gambling site could crash if processes over 15 TPS. However, an EOS-based casino payment option like BetDice could crash if processes 50 or 60 TPS.
On the other hand, EOS has delivered capacities of up to 3,996 TPS in the past, the EOS Network Monitor claims. Thus, EOS is capable of processing large volumes of transactions, but there is no evidence that level of TPS is sustainable.
Is BetDice Secure?
Both the security and legality of BetDice are in doubt. Strangely, researchers at the Whiteblock research firm claim EOS is not even a blockchain.
To explain, Whiteblock researchers allege EOS is actually a cloud computing solution and not a blockchain, The New Web claims. Whiteblock researchers reportedly built a replica of EOS and found it is not a proof-of-work blockchain.
Essentially, Whiteblock alleges EOS achieves greater capacity by reducing the security of the chain. Thus, EOS is a sidechain; a less encrypted shortcut around the regular internet, rather than a blockchain.
Is EOS Secure?
Sidechains offer capacity because they have less encryption and fewer security mechanisms like proof-of-work. A proof-of-work protocol requires users to verify their identities by performing some task a blockchain recognizes.
Less security offers more speed and capacity but it creates greater vulnerability. Obviously, hackers could have an easier time penetrating a sidechain with no proof-of-work.
Bet Dice could set itself up for such an attack, because casinos move lots of cash. However, Block.One could have other security measures it is keeping secret. Notably, constant monitoring of the system and fast reaction to security breaches could be more effective than layers of encryption and elaborate protocols.
To elaborate, in real life an armed guard, a regular security patrol, a night watchman, or a dog is more likely to deter thieves than thick doors and big locks. Crooks are more afraid of bullets, arrest, and dog bites than of locks, alarms, and doors.
Similarly, Block.One could bet active security could be a better deterrence than encryption. For instance, bad guys are probably far more afraid of the FBI; or a retaliatory cyberattack, than a hard-to-crack blockchain.
Is BetDice Legal?
A far greater problem for BetDice is legality. Unfortunately, the legality of online gambling is unclear and confusing.
For example, for it is illegal to gamble on websites based in the United States, LegalZoom claims. However, it is legal for Americans to gamble on websites based outside the United States.
Thus it is legal for Americans to gamble on BetDice, but illegal for BetDice to operate in the United States. Confusingly, I could not determine where they domicile BetDice because they list no physical address at its website.
Moreover, it could be illegal for US financial institutions to process BetDice (DICE) transactions. My guess is the courts will need to rule on blockchain gambling’s legality in America.
What Blockchain Gambling is Legal in America?
To complicate matters, the US Supreme Court struck down a federal law banning online sports betting in Murphy, Governor of New Jersey vs. National Collegiate Athletic Association (NCAA). Consequently, online sports-wagering is now legal in some US states, The New York Times theorizes.
Therefore online prediction markets; like Gnosis and Stox, are legal in parts of the USA. Murphy v. NCAA could allow prediction markets to operate because they take bets on events like political contests.
However, federal law clearly bans something like BetDice from operating on US Soil. American law bans BetDice because it offers casino and card games; which US legal doctrine does not consider betting. Conversely, BetDice could operate in the US if it were taking wagers.
Despite the legality questions, America is a fertile territory for social media gambling. Gallup’s Americans Views poll estimates 68% of Americans see nothing wrong with gambling.
Is BetDice a Good Cryptocurrency?
I consider BetDice (DICE) a questionable altcoin because it relies on EOS; a new and unproven blockchain. However, you could convert DICE to Bancor (BNT) or Ether (ETH) through Bancor’s Liquidity Network.
Notably, Bancor’s Liquidity Network gave DICE a Coin Price of of 0.1543₵ on 4 June 2019. Plus, Bancor gave DICE a small liquidity depth of $29,164 on the same day. In clarification, the liquidity depth is the value of all the DICE in the market at a given time. Bancor estimated DICE’s 24-hour market volume at $5,789 on the same day.
I could not find BetDice (DICE) on CoinMarketCap’s website on 4 June 2019 which shows how new the token is. However, BetDice could have some liquidity and value if its blockchain casino works.
Note: BetDice is apparently unrelated to the Ethereum Request for Comment (ERC20) cryptocurrency Etheroll (DICE). Etheroll uses a smart contract to take bets on its dice game.
Speculators need to stay away from BetDice; however, because it is an unproven business, they link to an unproven blockchain. Notably, it is not clear what social media network, BetDice will work with.
What Social Media will BetDice work with?
Blumer claims Voice will give users more control over their social media experience. Interestingly, Blumer hopes to lure users to the Voice by rewarding them with Voice EOS-based tokens. Anybody that uses Voice will receive Voice tokens under the network’s current business model its website claims.
Moreover, the Voice’s website promises, “no robo-mobs. No catfish. No burner accounts.” Block.one apparently hopes to achieve that goal through its EOSIO protocol which could make all Voice interactions public.
There is no evidence, BetDice will be available through the Voice, or connected to the Voice. It is interesting that BetDice and the Voice appeared at close to the same time (Late May/Early June 2019), however. Additionally, BetDice could adapt the Voice’s business model to grow its network.
In the final analysis, BetDice (DICE) and Voice are good ideas for blockchain platforms. There is no evidence that those platforms will work or make money.