Adopting blockchain requires a shift in mindset and infrastructure , which may face resistance from organizations that have created a security culture based on layering . The key here is to rely on a deterrent that will push operators to adopt blockchain . That deterrent is fines .
Blockchain : A Paradigm Shift
Blockchain technology addresses these challenges by introducing a system of unparalleled transparency , traceability , and tamper-proof data . Unlike traditional databases , blockchain creates an immutable record of every transaction , ensuring data integrity and security .
What Makes Blockchain Unique ?
Immutability : Blockchain records cannot be altered or deleted . A simple analogy would be to compare blockchain to a photograph taken with a camera that immediately prints the photo . Once the data is captured , it remains permanent , ensuring absolute reliability , without the ability to alter it .
Transparency : Every transaction is recorded in a way that is accessible to authorized persons to observe the transactions . This greatly enhances credibility and creates a technology trust ecosystem where accountability can be clearly demonstrated .
Real-Time Capability : Blockchain enables instantaneous data sharing and analysis , empowering regulators to act swiftly against money laundering and problem gambling .
The Fundamentals of Blockchain
Blockchain is a very simple concept that has often been overcomplicated by those confusing it with cryptocurrency . Blockchain has several principles that work together to form its strong security and integral way of treating information .
• Hashing . Hashing is a simple , but strange word . All it means is that the information is given a random generated password to secure it .
• Block . Information that is hashed is stored in a block . In other words , information that is secured with a password ( hashed ) is stored in a folder . That folder has a maximum number of files that can be stored , and that is why it is called a block . As each piece of information is secured with a password , it fills the folder until you have to start a new folder ( or block ).
• Chain . This is the incredible advantage of blockchain . Each piece of information that you put in the folder ( or block ) is linked to the previous piece of information . This means that each random password is linked to the other . To tamper with a piece of information you have to be able to open every single password in the block and the other blocks and the entire chain . That is almost impossible .
• Consensus . The greatest advantage of blockchain as a security strategy for information is that blockchain is built in a network principle . To change , manipulate or add information , a certain number of computers that hold a synchronized copy of all the historical transactions in a shared folder must all agree that the change requested is coming from a valid and credible source . Once the consensus is reached by the network of computers sharing a synchronized copy of all the transactions , a new transaction is authorized that will add a new password to the new information and link that password to all the other passwords in the entire chain .
• Deletion . You cannot delete information in a blockchain . That is simply the most integral thing you can ever learn about blockchain . While blockchain might seem complex , its core principle is straightforward . Each piece of data is secured with a unique digital fingerprint , or hash . These hashes are linked together in a chain , creating a secure and unalterable sequence . This “ chain of blocks ” ensures that any attempt to tamper with the data is immediately detectable .
A Practical Example of the Security of a Blockchain
Consider a scenario in which gaming transaction data is stored in a folder ( block ) on a blockchain . Each transaction is time-stamped , given a random password ( hashed ), and linked to the previous transaction inside the folder ( block ) on the entire chain of folders ( blocks ).
If someone attempts to alter a transaction , they will need the technology means to infiltrate every single password ( hash ) in every folder ( block ) of the entire chain and open them simultaneously to make a change . This is almost mathematically impossible .
Real-World Applications of Blockchain in Gaming Regulation
1 . Personal Disclosure Forms The most poignant and favorite example of blockchain is the regulatory disclosure form . Faxes , PDF and paper are now the most insecure means of completing these forms . From creation to expedition to analysis to storage , this archaic method of doing the most basic and essential compliance task is not only outdated , but also highly insecure . Migrating the personal disclosure form to a blockchain to secure and store for constant usage would revolutionize the security process .
2 . Responsible Gambling Current responsible gambling practices are reactive , often addressing issues only after they escalate . They are largely qualitative and not globally managed . The information is stored in standard databases that are vulnerable to cyberattacks .
Blockchain offers the most secure means to share information between casinos and to globalize jurisdictional oversight while maintaining the highest means of confidentiality and security .
MARCH 2025 www . ggbmagazine . com 15