The narrative on the revolutionary properties of blockchain is old and tired.
Its distributed ledger system will not solve every problem, nor revolutionize every business; there are some businesses for which blockchain just doesn’t make sense.
The market has been pummeling blockchain companies for awhile now, and most of the companies presently getting pummeled deserve it.
But maybe the market is wrong about Graph Blockchain (GBLC.C), and maybe it’s been picked on because it’s just not the right time for blockchain companies.
Let’s consider their latest acquisition.
Graph signed a letter of intent to acquire Blockchain Innovations (BIC), and its subsidiary, The Games Company.
This acquisition gives Graph their own gaming technology platform and a ticket to the emerging esports dance. Esports promises to be a cash cow in the coming years with the estimated revenue at 1.8 billion by 2022, according to Newzoo, a gaming industry analytics firm.
But that’s just a small chunk of the overall online gambling industry, which is anticipated to reach USD$73.45 billion by 2024, according to market researchers, Hexa Research.
BIC’s interface promises gambling options across a broad spectrum of gaming categories from Esports and fantasy sports to traditional sports betting and lotteries.
“Blockchain technologies is still in their infancy and have the potential to disrupt the gaming sector by introducing a new paradigm of how the games are monetized and distributed to consumers. We look forward to working with BIC and TGC teams in building our global footprint,” said Jeff Stevens, CEO of Graph Blockchain.
The future of online gambling? Maybe.
There are some direct, no-bullshit ways that blockchain technologies could change the online gambling industry.
For example, BIC uses smart contracts and blockchain’s immutable flow of information to create a fair gaming environment that doesn’t require deposits, and provides instantaneous payoff for the winner.
That means no cash handling and no security nightmares because everything is digital.
This is all made possible through the use of PebbleCoin, a gambling-by-design cryptocurrency that has been mined since 2015.
PebbleCoin is the one of the first crypto-currencies to utilize smart contracts and trade them as freely as coins – with a revolutionary next step. Attached to each contract is the outcome a public event such as a football match, horserace, performance of a fantasy lineup, or a currency’s price.
BCI has invented an entire infrastructure to utilize the coin, including their own crypto-wallet, smart contracts platform, and a tipbot called Pebblego that facilitates sending and receiving those smart contracts.
Each PebbleCoin is two smart contracts wrapped into one coin.
When the transaction or outcome is settled, the conditions in the second contract kick in, and either divide up the wins or subtract the losses.
These coins can be divided by up to nine decimal places and traded to anyone on the eco-system prior to the game.
Here’s how this works:
Joe bets $100 on the Leafs to potentially win $180.
Joe can share his potential $180 win with friends who have a Blockchain Innovations wallet or an email address.
If the Leafs win – Joe and his friends each win and the contract coins convert to pebbles.
Joe and his friends have the option to re-convert the pebbles into cash and send it to their bank account, or convert the pebbles into another form of crypto. But if the Leafs lose, Joe and his friends get nothing and the divided pebbles are recycled back into the system to be used by someone else.
It’s worth repeating that nobody carries cash, and there’s no room for cheating because everything from betting to payoff is completely automated and logged within the blockchain.
This is a pretty good deal with some solid upside potential.
So how did the market react?
Nobody is paying attention.
Just like nobody was paying attention when they said they were going to provide supply-side solutions to Canada’s mad cow problem, or the global food supply chain management industry to combat the spread of Listeria or E Coli.
Granted, those two aren’t quite as sexy as gaming so maybe this will draw some eyeballs.
The problem is the mainstream equates crypto (and blockchain) with bubbles, scams and losses, and any blockchain company is going to have to contend with that.
The space will only improve after investors spot some good companies doing good business and bringing in good profits, which is really the best kind of PR.
If there’s an upside to all of this, it’s that this crypto-winter is eventually going to end and anyone who gets into companies like Graph early will have invested in a fully built-out, completely realized company that’s using blockchain correctly.
But wrap up tight for now because it’s cold out there.
Full disclosure: Graph Blockchain is an Equity.Guru marketing client.Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.