Affiliate Programs

Blockchain and the future of gaming affiliates

Blockchain and the future of gaming affiliates
Written by publishing team

Affiliates play an important role in the gaming sector, and it is one of the main channels for driving traffic and new potential customers for gambling operators. As the gaming sector continues to grow and mature, the relationship between the operator and its affiliates is closer than ever, especially with the tightening of regulations around the world.

While the role of affiliates is important to the health and growth of the gaming sector, the tracking and payment technology available to affiliates lacks innovation.

While the traditional affiliate program model has served the online gaming sector well, it faces many problems that undoubtedly hold everyone back. Trust, transparency, accountability and reliable payments are high on the affiliate agenda, and the sector has its own challenges that are well publicized in these areas.

For gambling affiliates in particular, there is significant room for improvement in the systems and infrastructure that currently manage these relationships, to inspire greater confidence in their business relationships.

Enter the blockchain. Like many other sectors, gaming affiliates will benefit greatly from the increased adoption of blockchain, which solves many of the weaknesses that affiliate program managers and affiliate program managers face today. The technology is already there to deliver a more reliable, trustworthy and timely affiliate experience and is likely to play an increasingly important role in the coming years. Here are some of the biggest challenges facing affiliates today and how blockchain can help.

tracking

Affiliate systems operate largely on trust, with no real transparency to affiliates, other than data provided by the operator. For malicious operators, especially when it comes to affiliates operating on the basis of profit sharing, there is an opportunity to unmark the affiliate icon from a player whale, excluding the affiliate from the picture for a rightfully accrued future revenue. While it is certainly unethical and a breach of contract from operator to affiliate, it is possible to commit such fraud using the affiliate tracking technology in use today.

At the moment, player data is collected and processed by the operator first, before it is disclosed to the affiliate – in other words, the trust rests with the operator to provide truthful information. With the blockchain, data can be shared from the source, without going to the operator first.

Blockchains allow data to be statically logged as it happens – a written, verifiable and auditable record that cannot be changed or modified. Both operators and players can know right from the start that the data written in the string is accurate and pure. This means that trust is simply no longer an issue, because all data is verifiably secure and accurate in the distributed ledger.

As a result, both operators and affiliates can see the data as it happens, knowing that they are seeing real information. The data is auditable and traceable, and can seamlessly and automatically interact with other systems. Affiliates can track the spending of individual players on the blockchain in their spare time, and they are in a better position to identify any discrepancies, should they arise.

Payments

For affiliate marketers who work with multiple affiliate programs, reconciling payments can be a big problem, every month. With blockchain-based payments, we can do without intermediaries and affiliate managers can automatically and instantly send commissions to the affiliate wallet. Take CPA commissions, for example – these commissions can be sent to an affiliate the second a player deposits and/or hit the minimum deposit requirement if there is one, rather than waiting until the end of the month to collect the bulk payments.

Late payments can be a huge challenge for affiliates, especially for those who rely on their commissions to pay bills on a certain date. Without the traditional accounting problems we face today and using digital currency and blockchain-based smart contract technology instead, late payments would be a thing of the past.

Regulation

Due to regulatory pressures, operators and affiliates must work even more closely in order to stay compliant. The operators are now responsible for all the players that the affiliate provides from their advertising means and methods, so each operator will need to comply with their own rules and pass them on to the affiliate. Blockchain helps standardize interoperability between the two, and in turn encourages both parties to be more transparent with each other.

Bitcoin blockchain for gaming affiliates

Blockchain systems are the future for gaming affiliates, and are already playing an increasing role in promoting trust, efficiency, and integrity in the affiliate model. Bitcoin SV, in particular, is Bitcoin as a Platform – designed for developers and entrepreneurs as it contains the tools needed to build a tracking app for affiliate specifications. The blockchain itself allows micro-transactions – even nano-transactions – to be recorded automatically, by automatically issuing payments in BSV, with the help of smart contracts and integrated systems. The strength of Bitcoin, as envisioned in the original Bitcoin white paper, means that affiliate systems can be set up to offer up to precise tracking, reporting and payments automatically, with complete transparency and accountability.

As affiliates continue to benefit greatly from this shift to blockchain technology, it is up to them to encourage the issue across the industry in general, and to speak with their affiliate managers about what Bitcoin has to offer. By shedding light on transparency, both affiliates and operators win, with a more open, honest, verifiable partnership.

See also: CoinGeek Live Dashboard, the future of iGaming on the Bitcoin Blockchain

New to Bitcoin? Check out CoinGeek’s Bitcoin for beginners Section, The Ultimate Resource Guide to learn more about Bitcoin – as envisioned by Satoshi Nakamoto – and the blockchain.

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publishing team