Introduction
Is the “System Without Winners” Leading Us to Games and Gambling?
In recent years, the term “web3” has become increasingly common. However, looking at the situation in 2024, it is difficult to say that “web3 is rapidly becoming popular and mainstream.” The essence of web3 lies in “decentralization,” aiming for a platform where “there is no central authority, and all users have an equal standing.”
On the other hand, from the perspective of those currently holding power and wealth, as well as entrepreneurs striving to succeed in this era, there may be little motivation to promote a technology that could undermine their own influence.
So, in what scenarios is this “decentralization” truly necessary? In this article, we focus on the domains of “gaming” and “online casinos (gambling)” as potential areas where decentralization can be most effectively realized. We will explore the current status and future prospects.
What is web3?
Decentralized (Non-Centralized) Management
web3 is built on decentralized technologies such as blockchain. Instead of a centrally managed system with a single server or administrator, management is distributed across the entire network, preventing data tampering and arbitrary control.
- Objective: To break away from structures dominated by existing capitalists and power holders, thereby enhancing transparency and equality.
- Key Technologies: Blockchain, smart contracts, DAOs (Decentralized Autonomous Organizations), etc.
- Expected Benefits: Transactions and governance without a central authority.
However, this idea of “not creating a single winner (administrator)” could significantly shake up our current social and economic systems. It may not necessarily be welcomed by those who already hold major power and profits.
Why the Development of web3 is Not Rapid
The philosophy of web3 is revolutionary, but it may take time for it to become widely adopted in society. One reason is that, as mentioned earlier, those with vested interests may be reluctant to take significant action.
- Clash with Existing Power Structures: Major tech companies, governments, and financial institutions have minimal incentive to cooperate with technologies they cannot easily control.
- Usability Hurdles: Wallet management and gas fees can be complex and difficult for the average user to understand.
- Regulations and Laws: Approaches to regulating decentralized services vary greatly by country, creating high uncertainty.
For these reasons, it is unlikely that web3 will suddenly “explode” across every sector in the near future.
Platforms Where Decentralization Thrives: Games and Casinos
On the other hand, there are scenarios where the value of “no central administrator” and “systems that run automatically on their own” is maximized. Specifically, the fields of gaming and gambling are prime examples.
1. Games
- NFTs and Blockchain Games: In-game items are tokenized as NFTs, allowing players to freely trade them.
- DAO-Led Game Development: Gamers and investors vote on the game’s direction, guiding its development.
- Focus on “Play” by Users: Players want to avoid unfair rule changes or sudden service shutdowns by a central authority, desiring to purely enjoy the game.
2. Casinos (Gambling)
- Transparency and Fairness: The most critical issue for casinos is whether outcomes are genuinely fair. By managing random number generation and payouts on a blockchain, trust can be significantly enhanced.
- Decentralized Management: The role of the “house” is minimized (or eliminated), with smart contracts handling the games.
- Lower Operating Costs via DAOs: Minimizing labor and licensing costs can help raise the Return to Player (RTP).
In gambling, more than just “not creating a winner,” people demand “no arbitrary changes to the rules” and “no unfair increase in the house’s share.” Decentralization aligns perfectly with these needs.
Can a DAO-Driven, Ultra-Low-Cost Casino be Profitable?
One intriguing idea is a casino with no customer support, no bonuses, dedicated to cryptocurrency transactions, and free from KYC (Know Your Customer) checks, potentially achieving complete decentralization under DAO governance.
Cost Structure
- Conventional Online Casinos: High costs for licensing, customer support, marketing, and bonuses.
- Decentralized Casinos (At the Extreme): Automation via smart contracts for gameplay and payouts. Minimal advertising and reliance on community-driven word of mouth.
Redirecting Costs to RTP
By removing the high-cost structure of a central operator through DAO governance, it becomes possible to significantly increase user payouts (RTP).
- Higher RTP Increases Player Returns: More players join → Influx of capital → Platform growth.
Risks and Challenges
- Regulatory Conflicts: Operating without KYC may be illegal or fall into a gray area in many jurisdictions.
- Potentially Scammy Projects: A fully unregulated casino might raise users’ concerns about fraud.
- No Customer Support for Troubles: Without support, there’s no safety net for bugs or hacks.
If these hurdles can be overcome, a casino with extremely low operating costs and high payouts could be realized—potentially showcasing the “true essence of decentralization.”
Conclusion: Can Games and Gambling Pave the Way for web3?
The “system without winners” that web3 envisions may face resistance in our current capitalist and power-driven structures. But in the domains of gaming and gambling, where people crave fairness, transparency, and freedom from central control, the promise of decentralization shines brighter than ever.
Imagine a world where gamers own their in-game items outright, free from arbitrary restrictions, or where casino players can trust every bet they place because of blockchain’s immutable transparency. These are no longer distant dreams—they are potential realities, driven by web3 technologies.
Moreover, the adoption of DAOs in these fields could redefine how we view profitability, fairness, and community-driven ecosystems. With reduced operational costs and increased payouts, decentralized gaming and gambling platforms could set a powerful precedent for other industries to follow.
web3’s path to mainstream adoption may be slow, but breakthroughs in gaming and gambling could act as a catalyst for change. The question is not if web3 will reshape our world, but when. As society becomes more open to decentralized systems, and as regulatory hurdles and usability barriers are addressed, the promise of a more equitable and transparent digital future will come closer to realization.
Whether we embrace it or resist it, the era of decentralization is already knocking at the door—and gaming and gambling may very well hold the keys to unlock it.
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