Making Web3 Safe for Online Gamblers

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Online gamblers want the same protections as shoppers perusing the Internet to buy a shirt or commuters ordering a rideshare. They want to get what they paid for and want the identifying information and financial data they surrender to a merchant to be secure.

The seemingly unending series of data breaches at large banking institutions and casino companies alike continue to hack at the confidence consumers bring to these transactions.

Jerad Finck thinks his Cosmic Wire company can help. A three-year-old start-up that completed a $30-million seed round in July, Cosmic Wire wields 77 coders to not only design ground-breaking web3 and spatial web platforms for a multitude of customers but also overlay the marketplace with blockchain technology meant to turn away ever-savvy cyber criminals.

Finck joined the Gaming Today Playbook Podcast to outline how Cosmic Wire’s work can improve online gambling security directly. Some excerpts:

web3 gambling security

On Cosmic Wire’s Gambling Connections

JF:We’re heavy, heavy in gambling. … Deep in the space.

We can run all the game logic. You can walk into the casino and do your [Know-Your-Customer, Know-Your-Business-Anti-Money-Laundering]. We can handle all the payment processing in real time.

“We cut deals with all the major credit cards. … You can plug in your game logic, walk in, sit and play poker with your friends or in a virtual environment, the entire thing.

“And it all becomes on [block]chain. It’s all automated. It’s covered back and forth. Gambling … this was built for that kind of stuff.

“It translates to pretty much every system, but definitely gambling. We’re putting gambling in almost every system that we’re putting out, along with a couple of major casinos.”

How Will People Meet and Gamble in the Future?

JF: “The whole world can go to the same [virtual] place. Everyone can be in the same place at the same time.  Every user goes through KYC-KYB-AML. Once they get approved, they go to spin up their identity.

“It’s just whatever social network you’re in with whatever device you’re on. We keep one of the keys in cold storage and delete those keys the minute they form. So that identity can never be reconstituted. If you lose your identity, you must go through the whole process again. But because it’s all on a ledger. We can migrate the ledgers back and forth in that instance.

“We know exactly who everyone is. So, this has massive implications for gambling. Anything you want to have, any credentialing for where you’re trying to create a secure environment, is really for that.

On State Regulation and Taxation

JF: You can’t hide who or where you are anymore. Everything is geofenced.

“So if you’re in Wyoming, you can’t gamble in Nevada through their Nevada casinos. You have to be in Nevada to do that. …

“We really didn’t have to do a lot except put in the API connections from all the KYC-KYB-AML, who already have all the regulations for all the different regions because they’re the ones that are doing it. And we just plug that in. And then, when people are in, the wallet itself is credentialed based on the IP that was linked to it and where that person is in real-time.

And it’s not something you can spoof with a VPN because you have to go through these checks in real-time to prove who and where you are every single time, to the highest level. That efficacy is the same efficacy that JP Morgan uses. We’re using the exact same process with the exact same company.

“It’s not perfect. It’s approaching zero [trust environment]. But every system that moves forward in technology is always approaching zero. And this is infinitely better than anything that’s out there now.”

Excerpts of the interview have been edited for style and clarity.

About the Author
Brant James

Brant James

Senior Writer
Brant James is a senior writer at Gaming Today. He has covered the sports betting industry in the United States since before professional sports teams even knew what an official gaming partnership entailed.

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