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Ethereum Gambling pioneer FunFair raises $26 million

Created by veteran games developer Jez San, the super-fast Funfair casino platform looks set to revolutionise the online gaming world following a fruitful ICO.

The firm that recently pledged to be “the future of gaming” raised $26 million in the first phase of its ICO, generating 1.7 billion FUN tokens — the native currency that’ll power the platform. Players can use this Ethereum-based currency on casinos built on the firm’s protocol, which operates on the blockchain and uses patented payment channels to ensure scalability and speed. Developers, licensees and affiliates are also able to interact and build ontop of the protocol. FUN tokens will be possible to exchange for multiple fiat currencies, with the token’s value set to increase should the platform see increased adoption.

“Unlike other companies, we have much more than a white paper and a dream for our token creation event,” said Jez San, founder and CEO of FunFair. “We’ve already developed real, playable casino games that prove our model works. Our vision is a limitless universe of transparent, secure casinos that can be easily created by anyone, anywhere in the world.”

The continued growth of FUN tokens, however, relies on community demand, namely the popularity of the platform’s services with developers and casino operators.

How is FunFair changing the gaming landscape?

The firm’s flagship “Fate Channel” technology —  a rapid off-chain payment channel, which is aimed at minimising gas costs for operators and players alike, is the very first of its type to be deployed and used at scale.

A common problem suffered by Ethereum casinos that operate entirely on the blockchain is slow block confirmations for each individual bet, which proves costly both for player and operator. FunFair’s ‘Fate Channel’ takes the transactions “off chain”, meaning that each payment (bet) can be made securely without waiting for blocks to be confirmed whilst retaining the security of the blockchain. A State Channel is opened for the duration of a gaming session, allowing for rapid trustless betting while it’s open and cutting out the costly middle-man.

“Typical competitor costs today can exceed 10% per bet for players,” commented San. “Our goal is 0.1%.”

By the time the firm launches its v4 Fate Channel implementation, its system will be entirely serverless, reducing overhead costs for potential casino licensees. By removing much of the operational costs of a casino, FunFair could create major disruption within the industry, and its software could prove key to survival for firms operating in this highly competitive market.

Additionally, FunFair uses transparent, Ethereum smart contracts with its open source code sitting on the blockchain. Players will be able to see all their games and that of others, and are able to verify the outcome’s fairness and confirming whether they should have been paid. The games require no deposit or withdrawal, with gamblers retaining full control over their funds at all times.

It is also worth noting that Bitcoin and Ethereum gambling is one of the largest markets for cryptocurrency right now, exactly the niche where Funfair happens to be pioneering.

What’s next For FunFair?
FunFair wants to work with regulators to create an infrastructure around cryptocurrency gambling. With a presence in the UK, they will no doubt be pushing for regulation and approval by the UK Gambling Commission, which could have enormous implications for the industry as a whole.

Approximately 30 percent of funds raised from the token creation event will be used toward development of FunFair’s peer-to-peer platform, protocol, and a suite of high-quality games. Another 30 percent of the funds raised will be utilized for marketing, PR and business development. The remainder will be used by FunFair to service licensees and promote third party development.

Phase two of FunFair’s ICO will commence in September.

Last updated by Jen Van Lier on September 6, 2021

About the editor

As website manager, Jen contributes reviews and updates to The Bitcoin Strip on a daily basis. Jen worked in the casino industry for 9 years before focusing on Bitcoin in 2016. She writes on subjects ranging from traditional slots all the way through to unique Bitcoin games, provable fairness and Ethereum smart contract gambling.

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