Funfair Cryptocurrency Review

Blockchain technology has found its way to almost all industries and sectors and the gaming industry is no different. Online gambling has been one of the most sought after virtual games in the online world, with users hoping to get lucky and amass fortunes. However, the current gambling industry faces some plaguing problems, such as the lack of transparency and accountability. Often, many unsuspecting users fall prey to back handed fraudulent entities due to the lack of transparency. 

Fortunately, there have been a number of blockchain based gambling platforms that aim to address this issue, one of which is Funfair, a B2B company that provides blockchain based solutions for regulated gambling.

What Is Funfair?

As mentioned before, Funfair is a B2B company that serves the online regulated gambling sector with blockchain based applications. The Funfair platform has been designed to cater to the requirements of various unique game types. This allows game developers as well as casino operators, a platform to develop blockchain based, production level casino gaming for their users.

The Funfair token (FUN) is currently valued at $ 0.002925 USD, as of 9/16/2019 according to coinmarketcap, with a total market cap of $19,152,427 USD. The token is currently traded on 29 markets, with listings on major exchanges such as Binance, LAToken, and Bittrex.

The Team behind Funfair

The Funfair project was conceptualized by Jef Sanz and Heremy Longley, who first began with an online poker game called PKR in early 2005.

What are they trying to do?

The current, expansive online gambling industry has amassed millions of users but is not without its own set of flaws and limitations. Specifically issues plaguing the industry can negatively affect customer experience, and a direct impediment towards acquiring new customers. Thus, the main aim of the Funfair team is to address some overarching issues that are experienced both in the newer blockchain based games, as well as the more traditional online gambling sites.

Thus, Funfair aims to address the three main problems plaguing this industry for the last few years, which are explained in brief below.

  • Latency and Cost: Issues with the transaction speed and costs involved have always been major impediments for such gambling platforms when it comes to both performance and user experience. Detriment to user experience has been caused by a number of issues such as high and volatile gas fees, and game speeds which can hardly keep up. Much of these problems can be attributed to the Ethereum network’s scalability problem.  As a remedy, Funfair introduced its proprietary “Fate Channels technology”, addressing the above issues of latency and cost to provide users with a fast, cheap yet enjoyable gambling experience.
  • Fairness and Reliability: Another issue plaguing online gambling sites is the issue of gaining trust among general users. Normally individuals tend to be sceptical when it comes to dealing with such gambling platforms, citing the danger of manipulated outcomes. This not only lowers the level of customer experience for users, but also deters new users from taking part in the online gambling industry.  Funfair looks to address these issues by introducing a “provably-fair random number generation” feature, also known as RNG. Under this system, all numbers generated are random, with a standard sequence allowing players to see the activity within the games in a live session.
  • Know Your Customer (KYC): Almost all legacy online gambling platforms have tedious, complicated and expensive processes for signing up and proving the legitimacy of their identity, as well as their payment channels. It has been argued that this long drawn out process discourages new users from entering online gambling. Funfair aims to address this by integrating a blockchain based identity construct system. As a result, the identities of new or returning users can be reaffirmed and verified instantly, saving much of the time and hassle experienced by users.

How Does It Work and What Are Some Features Specific to FUN?

When it comes to the underlying technology behind Funfair, it is worth stating that is simple, yet different than what most of their competitors are engaged with. The Funfair Token (FUN) is an ERC20 token, taking advantage of the intrinsic characteristics of Ethereum to create a decentralised gambling platform. However, unlike other gambling sites which require users to pay exorbitant fees, Funfair has developed their own state channel called “fate channel” on the Ethereum blockchain which operates separately. This allows it to record all transactions as “counter-signings of updated claims” on an escrowed amount of funds.

  • Fate Channels: The scaling solution which is responsible for off-chain solutions on the Ethereum blockchain are called State Channels. State Channels allow nodes to maintain a record of verifying transactions, without the root chain.

Fate Channels are Funfair’s own version of State channels which are designed to specifically support the nuances involved with online gambling.

Use Cases of The Coin

Funfair addresses the problems of online gambling by hosting it on the blockchain and licensing out their technology. Here, the Funfair tokens (FUN) would be used for the four following functions:

  • As a method of charging fees before being destroyed
  • As the sole means of playing casino games from Funfair
  • As Payment for game creators
  • As a currency for in- app purchases

The resultant system has a greater degree of certainty when it comes to fairness and quality, with transparent algorithms in use which are available for public scrutiny.

Additionally, Funfair Games have been built for mass adoption, with the entire Funfair platform being built in HTML5. This makes all its games accessible from both mobile and desktop browsers.  This is radically different from normal Flash-built casino games, which require additional plugins before one can play.

Final Thoughts

The Funfair platform combines the trustlessness and immutability of Ethereum Layer 1 technology with the scalability solutions of Layer 2 technology. Among all the projects and Dapps in this industry, Funfair appears to be one of the most visible projects which demonstrates the variable unity of Ethereum. With a clear road map and well defined token use case Funfair has already accrued a talented team of developers with prior experience in gambling and gaming. 

If you enjoyed reading this article, consider following the blog for a new post every Tuesdsay!

Leave a Reply