Interview with Edgeless Co-Founder Tomas Draksas

 

Edgelessis a blockchain based project whose goal is to offer players the chance to play on a decentralized casinos. The platform currently offers 2 fully working products: Dice and Blackjack. In order to play users have to use their native token EDG which is an Ethereum-based token (ERC20 more specifically).

They are only in the initial phase of their project and have a lot of room to grow. In an interview with CasinosBlockchain the co-founder Tomas Draksas addressed some questions regarding their current state of business and how they plan to work on their future ambitions.

1. How do you evaluate your platform from the moment it launched until now?

We launched not that long ago with only 2 games. In the upcoming weeks we will launch more games. The more games we have, the larger customer audience we can take.

2. You have secured a Curacao License. Will you be looking to obtain other well known licenses like Malta or the United Kingdom?

We have a plan to have all gambling licenses and Malta or UK licenses are no exception. We have dedicated resources to working with license related issues every day and getting them is inevitable.

3. In your website it says a sports book will be coming in Q3 of 2018. Will it be blockchain based? What can users expect from this product?

Since sport events are publicly available, trust factor is solved and it doesn’t require any blockchain to maintain trust. So it’s gonna be a traditional sports book, however people will be able to place bets using cryptocurrencies.

4. As things stand you are Ethereum based. Does Edgeless plan to launch its own network in the future?

No, we do believe that Ethereum blockchain will be dominant blockchain in a near future.

5. The community sees Edgeless and Funfair as competitors. There are some differences in the way both operate. Do you see Funfair as competition?

In mid 2016, Edgeless was the first online casino in the world which started working on Ethereum blockchain. Soon after that dozens of other blockchain casinos appeared. Blockchain technology solves one of the fundamental issues of online gambling industry which is a trust of the system. Everyone can trust the dealer when they see physical cards but there is no 100% perfect way to trust online casino system. In fact, there are dozens of cases when online casinos where caught implementing algorithms to change a card or a dice. Ethereum blockchain is here to change that.

For the past year Edgeless grew so great that Bloomberg stressed Edgeless as the ICO with the biggest ROI. Edgeless climbed to the Top 50 cryptocurrency list with a huge goal to decentralize the whole gambling industry but dropped soon after we started focusing on the development of our own online casino. In fact, nowadays it is almost impossible to implement blockchain technology in the whole gambling industry, because Ethereum is still a young technology which handles only 15 transactions per second (as an example, Visa processes 45000) and it uses 35 times more energy than traditional server-based technology.

In late autumn another blockchain casino player FunFair appeared with a promise to license blockchain gambling technology for every online casino provider in the world. However, there is no answer to how Funfair will implement blockchain technology in thousands of different server-based systems and how implementations will work from the technical perspective. So FunFair is a lousy player in the blockchain community without any practical implementation. We don’t see them as competitors as we concentrate on a single casino and they are concentrating on a faulty dream.

6. Do you think top flight casinos look at platforms like Edgeless as a threat? Will they be forced to adopt blockchain technology in order so stay competitive?

The key differences between classical server based casino games and blockchain games is in the execution process.
In classical cases, the game is executed from a server. And for blockchain games, these are executed directly from the blockchain network. This difference gives us 3 superior features which can be used to improve games.

First of all, distributed networks contain millions of servers which are located all over the world. It becomes almost impossible to shut down the network. No government or 3rd party can influence processing in a decentralized blockchain.

Secondly decentralized application source codes become transparent for its end user. Players can easily check the back-end of an app and be sure that the product they are using is exactly what it claims to be.

Third, blockchain system allows the creation of digital assets and its ownership which was not possible before.

These 3 features lead to 2 main use cases in a game industry. The first one is transparent betting. In traditional betting the random number generation (RNG) is always done in a centralized server, which gives power to an operator to cheat against its own players. In the past the industry had many scandals of cheating operators. Secondly a large share of gambling customers don’t really trust the way the cards are being shuffled. It’s quite a common practice for them to write a comment like “roulette is cheating” or even write to regulators demanding deposit returns. If the game is blockchain based, that means the RNG process becomes public neither the company nor any 3rd party can influence that. So players can rest assured the operator is not cheating.

For this reason we believe top casinos see Edgeless not as a threat but as an inevitable industry change.

1 thought on “Interview with Edgeless Co-Founder Tomas Draksas

  • This guy really doesn’t know what he’s talking about, which should be really worrying for anyone holding EDG

    Reply from Jez Sans (Head of FunFair) via reddit original here: //www.reddit.com/r/FunfairTech/comments/8u8s48/edgeless_cofounder_openly_criticizes_funfair/

    The community sees Edgeless and Funfair as competitors. There are some differences in the way both operate. Do you see Funfair as competition?

    Tamas: In mid 2016, Edgeless was the first online casino in the world which started working on Ethereum blockchain. Soon after that dozens of other blockchain casinos appeared. Blockchain technology solves one of the fundamental issues of online gambling industry which is a trust of the system. Everyone can trust the dealer when they see physical cards but there is no 100% perfect way to trust online casino system. In fact, there are dozens of cases when online casinos where caught implementing algorithms to change a card or a dice. Ethereum blockchain is here to change that.

    Jez: Whilst I agree with his sentiments over Ethereum being ‘the main chain’. And also concur over the benefits of smart contracts and what they can bring to fair casino gaming, however… Tamas doesn’t seem to let ‘facts’ get in the way of his claims. Its pretty ballsy to claim Edgeless was the first Ethereum smart contract casino. Conveniently forgetting those that came before. The reality is that Winsome was way before Edgeless with their Rouleth product. And Winsome probably wasn’t the first. Edgeless didn’t even build the first Ethereum blackjack, that honour went to Blockjack, which later became part of Winsome. Edgeless’s cto – prior to working at Edgeless – did put out a (really basic) 3-reel slot game in 2016, which was not especially functional and used borrowed graphics from someone else’s game. It was a fake slot – it didn’t spin the reels correctly and was functionally really akin to a dice game dressed up as a slot (It decided if you won, then moved the reels to ‘a winning’ position. A real slot would randomly decide the position of the reels, then see if you’ve won!)

    Tamas: For the past year Edgeless grew so great that Bloomberg stressed Edgeless as the ICO with the biggest ROI. Edgeless climbed to the Top 50 cryptocurrency list with a huge goal to decentralize the whole gambling industry but dropped soon after we started focusing on the development of our own online casino.

    Jez: Back in early 2017, every ICO hit the top 50, briefly, during the initial euphoria and token sale spike. And then they typically would head towards their true position over time when people can better evaluate the ability of the company to deliver on its promise. Edgeless has largely overpromised and under delivered. Edgeless didn’t fall out of the top 50 because it was focussed on developing its own casino. It may have fallen out because people could better see the company, its management and technical abilities, and measure them against the promises. Perhaps people stopped believing Edgeless were capable of delivering something to disrupt the entire casino gaming industry. With just one casino web site. two measly games. After more than a year! What have you been doing all that time?

    Tamas: In fact, nowadays it is almost impossible to implement blockchain technology in the whole gambling industry, because Ethereum is still a young technology which handles only 15 transactions per second (as an example, Visa processes 45000) and it uses 35 times more energy than traditional server-based technology.

    Jez: Its for that reason that layer 2 scaling technology is needed. The base Ethereum network can currently handle 15 tx/sec and it will take a year before upgrades like casper/sharding will improve the network capability, but with layer 2 tech you can go as fast as you want whilst retaining the security of the underlying chain – if you build it right. That most likely means State Channels with Dispute Resolution. FunFair has built its own layer 2 scaling tech based on generalised state channels – that can potentially deliver thousands of transactions per second because the majority of the game transactions happen off chain – but are rigorously enforced for correctness using Dispute Resolution on-chain. We don’t just do ‘payments’ off chain (like Raiden or Lightning). Fate Channels are executing the entire smart contract off chain. Every part of the game’s rules are running securely, off chain! As far as we’re aware, Fate Channels are the first time that generalised state channels have been implemented (In a real live application). Many are working on R&D, but none are live (as far as we know). We didn’t just build the tech, capable of being deployed on any and multiple casinos. We also built the UI. And a batch of commercial quality games. Everything needed for a new casino to be powered by the blockchain.

    Tamas: In late autumn another blockchain casino player FunFair appeared with a promise to license blockchain gambling technology for every online casino provider in the world. However, there is no answer to how Funfair will implement blockchain technology in thousands of different server-based systems and how implementations will work from the technical perspective.

    Jez: You don’t seem to understand layer 2 scaling tech. Its entirely possible that Edgeless doesn’t employ people who understand the fundamental technologies that are required and that could be a big issue for a blockchain gaming company. The Fate Channels were built to allow a potential (100x-1000x) performance increase over the underlying network, and more importantly, they make the games fun (and fair). The only load they put on the network is opening or closing a game session, but every game played inside the game session – potentially hundreds or perhaps even thousands of games played – will not incur gas or any load on the network, whilst the session is open. Just two transactions – one to open, and one to close the session, and then the rest of the games are played entirely off chain, but secured via dispute resolution onto the main chain. Each casino can run their own instance of the technology (Its a Geth node, with a Fate Channel server). BTW, we’d never be so arrogant as to claim we can take over the entire gaming business. Thats a huge $50B/year business. We’d be happy if we can disrupt and capture just a piece of it.

    Tamas: So FunFair is a lousy player in the blockchain community without any practical implementation. We don’t see them as competitors as we concentrate on a single casino and they are concentrating on a faulty dream.

    Jez: Without any practical implementation? He is choosing to be deliberately blind, as we’ve had a fully functional set of games and perfectly working Fate Channels, and a games App Store, and UI, since June 2017 (prior to our Token sale) when we first allowed anyone to play it on our showcase. And we’ve updated it every few weeks ever since, and grown the number and quality of the games, and the Fate Channels are better than ever.

    Conclusion: I used to think Edgeless would amount to something. They did a token sale before FunFair. Raised more eth than FunFair. Showed their first product earlier. Had all this potential. And then blew it. And did nothing with it. Its actually very disappointing how they’ve squandered their opportunity.

    Its also somewhat surprising when you take a look at the casino gaming charts on dappradar. Edgeless is often below FunFair in the charts, and this should NOT be possible. FunFair isn’t even live yet!! How can it possibly beat Edgeless in the charts!? If Edgeless had any clue what they’re doing they should be dominating the charts. Not just the casino gaming chart. They should be dominating the entire Ethereum charts.

    //dappradar.com

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