FunFair is a decentralized casino platform built on the Ethereum blockchain that runs entirely on Ethereum smart contracts in the browser. The platform is entirely server-less and decentralized, which is a welcome change to the current blockchain gambling space. Many blockchain gambling companies allow users to bet using cryptocurrencies, but don’t actually offer a decentralized service.
In addition to being completely decentralized, FunFair is drastically different from existing blockchain gambling services in both its settlement mechanism and its business model. For transaction settlements, the platform uses a proprietary settlement system to reduce network fees by processing transactions off-chain and settling these transactions in batches.
This mechanism is known as a “Fate Channel” and has been patented by the FunFair team. Fate Channels work by reducing the number of blockchain settlements per user session from dozens or hundreds to just two: one at the beginning of the session to initiate the smart contract, and one at the end of the session to settle a batch of transactions that occurred during the user’s session.
This off-chain method of processing transactions allows for FunFair casinos to be instant without requiring users to wait up to a minute for a block confirmation like many existing Ethereum gambling platforms. In addition to being instant, Fate Channels reduce the cost of transaction fees by 99%, reducing the standard cost from 10% to just 0.1%. This represents a massive improvement for both users and casino operators by once again enabling users to play with smaller amounts of money. Smaller transactions are currently prohibitively expensive due to the relative size of Ethereum transaction fees to the small bet amounts, requiring most users to play with a $50 minimum. Fate Channels eliminate the majority of these transaction costs, opening the door to games like penny slots and other small-stakes games.
The business model of FunFair is also unique. Rather than targeting users by building their own casino, FunFair has created a platform that they will offer to existing casino providers as a private label, provably fair, decentralized casino. This will allow existing casinos (and new operators) to create their own provably fair, online casino and launch it with their own graphical style.
Disrupting The Global Casino Game Market
At FunFair, the team has solved three key problems necessary to disrupt the projected $60B global casino game market using blockchain technology: lack of fairness, slow game speed, and poor game experience.
Unlike other casino game platforms, FunFair is the:
• Fastest – FunFair games are the fastest of blockchain casino games, occurring on the Ethereum blockchain without centralized servers. As a result, players see results in real-time that are fully auditable and provably fair while still fun and engaging.
• Most Fun – FunFair games have the same rich 3D graphics and slick user experience that players of app-based games have come to love.
• Most Fair – Players’ distrust of existing online casinos is widespread. FunFair uses highly transparent, Ethereum smart contracts with code on the blockchain to create the most fair online casino games available today. Players can see all their games and others’ to verify that the outcome was fair and whether they should have been paid.
• Safest – FunFair games require no deposit or withdrawal. Players retain full control over their funds at all times. Casinos never control players’ money.
• Lowest Cost – FunFair Fate Channels deliver the most efficient, lowest fees paid per transaction. Players only pay at the beginning and end of each session – not each hand or roll of the dice like most other games. As a result, players receive the biggest profits without delays or withdrawal fees – even during long sessions that most players desire.
• Easiest – FunFair games require no download or sign up process. Players click on a link and start playing immediately.
A demo of FunFair’s casino games (slots, blackjack, and roulette) can be viewed here:
The team
Jez San — Founder
Mr. San was inspired to become a computer game developer in the 1970s, and after playing the first ever massively multiplayer game Multi-User Dungeon (MUD) he founded one of the earliest British games developers, Argonaut in 1982, creating multiple multi-million-selling videogames including Star Fox, Croc, and Harry Potter. Jez was a pioneer in the field of real-time 3D computer graphics and his first game, StarGlider, was one of the earliest 3D games ever published. He co-invented the Super FX graphics RISC processor for Nintendo, the first custom chip to render 3D computer graphics in a game system. Jez has maintained an active role in computer games and online gaming, including work with console game developers Ninja Theory, mobile developer Origin8 and until recently PKR.com, a leading 3D online poker.
Jez is also an angel investor and some of his investments have included the artificial intelligence pioneer DeepMind Technologies (acquired by Google in 2014) and the cryptocurrency exchange Kraken.
Jeremy Longley — Chief Technology Officer
Mr. Longley is a highly experienced, versatile, passionate, analytical leader with over 15 years’ experience managing technology teams. In 2005 he co-founded the online gaming site PKR.com with Jez San and served as its CTO, leading a team of over 100 technical employees to develop an award-winning fully 3D game environment. PKR developed a range of 2D and 3D casino games, including iOS, Android and HTML5 products as well as a customization avatar system. Jeremy has also led development of a full in-site account management and cashier system, and systems integration with third-party providers including Playtech, OpenBet and Ladbrokes/GBE as well as extensive back office and business intelligence functionality.
What is the metric for success at FunFair?
The main metric for the success of FunFair is their ability to convince existing casino operators to license their platform. Their entire business model revolves around licensing their platform (which is a big part of the reason they patented their settlement mechanism) so that’s quite clearly the main metric for the overall success of the platform.
Assuming their platform lives up to the promises made in their whitepaper, it should be relatively easy to sign on existing casinos looking to either get into the online gambling market for the first time, or migrate their existing services to a fairer, faster, more transparent platform. FunFair has even registered several ENS (Ethereum Name Service) domains, such as “blackjack.eth” for exclusive use by their opera-
tors and affiliates.
FunFair (FUN) Token
Overview:
Current coin Value: $0.025792
Market Cap: $99,028,972
Total Supply: 17,173,696,076 FUN
Circulating Supply: 3,839,463,249 FUN
FunFair’s token, FUN, is the currency of this new ecosystem. The FUN token powers every aspect of FunFair’s Ethereum-based casino platform. Players will bet using FUN, developers and affiliates will be rewarded for their participation in FUN, and operators and licensees will pay players out using FUN. FUN will also power the smart contracts that run the platform, including FunFair’s unique new Random Number Generator.
Unique token distribution
Currently, when a popular ICO launches, so many transactions are transmitted on the Ethereum block chain that blocks can be full for 40 to 50 minutes following a popular sale. This results in a terrible user experience for general Ethereum users that may not even be participating in the crowdsale. FunFair has called this effect on the Ethereum blockchain “unacceptable” and has steps in place to mitigate it.
Due to the negative impact that token sales have on the Ethereum network, the FunFair team has taken steps to mitigate this issue using what’s called a “Server Multi-Mint” solution.
As described in their whitepaper, the FunFair team states:
“This technology was used first in the DAO refund contract and subsequently in the TokenCard TKN issuance. Using innovative bit-packing techniques, hundreds of individual FUN credits can be issued in a single transaction call. The server will generate a log of each of the five types of contributions — fiat, ERC20, Bitcoin, Zcash and Ethereum — and publish this log for inspection.
An outside firm has been retained to audit and validate that the server multi-mint credits correspond precisely to the transaction logs. Once the confirmation is received, the ERC20 FUN contract will be set to live and transfer and trading will begin immediately thereafter.”
This is a welcome change to the current way tokens are issued because it will help mitigate a significant amount of problems that users currently face during token sales due to a clogged Ethereum blockchain.
Even users that don’t contribute to these token sales are affected by this “main chain bloat” because of Ethereum’s current structure where all chains operate on the main blockchain, rather than on segmented side chains on platforms like Lisk.
Token Presale
All FUN tokens that will ever exist were created in one event on Friday 23 June 2017. At the end of the Phase 1 Token Presale, the total tokens issued were counted, and for every 100 tokens created via the Presale, an additional 66 2/3 tokens were created and allocated to the FunFair Founders and Token Presale Advisors.
All of the tokens allocated to FunFair Founders – which includes founders, developers and angel investors – will be locked and released periodically over an 18 month period. FunFair locked tokens will never be released in large blocks in order to help maintain market continuity.
Approximately 30% of funds raised from the token creation event will be used toward development of FunFair’s peer-to-peer platform, protocol, and suite of high-quality games. About 30% of the funds raised will be used for marketing, PR and business development. The remainder of the funds will be used by FunFair to service licensees and promote third party development.
Tokens equaling three times those created in Phase 1 were also created during the Presale and are now held in a FunFair Foundation Trust. These tokens will be offered in a Dutch auction at a later date. Any tokens that are unsold in the Phase 2 Sale will be distributed to Phase 1 token holders on a pro rata basis.
To participate in the token event, buyers simply visit this page and follow the instructions: https://www.funfair.io/token-event/. Buyers will be given the official Fun token contract address (ETH and ERCO20), Bitcoin and Zcash addresses, and more information on how to use these. For fiat currency, buyers can contact [email protected] before the token event.
Wallets
Exchanges
The FUN token has already been listed on Bittrex and EtherDelta, helping to raise awareness of the project and determine a fair market value ahead of the Phase 2 Token Event in September.
Considerations and closing
According to the H2 Global Capital study published in May of 2017, the total global revenues for the online gambling industry amounted to $400 billion in 2015. This massive market, combined with the FunFair founder’s combined 40+ years of experience creating entertainment products, provides a positive outlook for the FunFair platform.
The entire FunFair platform is already built and their core team maintains more than 10 full time developers. These developers have already completed the first games using the FunFair platform to act as fully playable proofs-of-concept. In addition, they’ve built the entire platform to run in HTML5 in the browser on desktop and mobile devices. This means users don’t need to download an app which is one of the major pain points of the current on-boarding process.
Assuming the FunFair team can attract the necessary casino providers to license their service, they will likely see lots of success with a concept that truly utilizes the blockchain to improve an existing market.
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