Chinese officials might not want to look at the latest report from blockchain research group SV Insight Research, It asserts that the country has a huge footing in the gambling dApp (decentralized application) world. Gambling is the category with the most dApps according to SV, and four of these dApps are made by Chinese teams, with even those made by non-Chinese teams possessing Chinese versions of their games. China is clearly a happy hunting ground for gambling dApp makers, despite the government’s numerous attempts to crack down on the homegrown online gambling market.

China not Taking the Gamble

China’s negative stance on cryptocurrencies is well known, as is their opposing view on blockchain technology, but recent years have seen a growth in their attempts to curtail various aspects of gambling. The government banned all online poker-related applications earlier this year, resulting in huge losses in the share prices of affected companies and arrests after the ban was implemented. This isn’t unlike 2011’s ‘Black Friday’ for online poker in America.
Participating in one of the two state lotteries is legal, as of course is a trip to Hong Kong or Macau. But, any other kind of gambling in mainland China is a risky business, hence why dApps are becoming popular.

Blockchain to the Rescue

The reason why dApps can flourish in a region with such tight restrictions is thanks to the decentralized aspect. Chinese authorities could, and have, seized servers of firms they believe are contradicting their laws, from which they can glean a mine of information about both the company and their customers. A decentralized platform on the other hand has no central source, with the information spread around the world, meaning that the threat of a user’s behavior being uncovered by authorities is much more reduced. This was one of the founding principles behind the concept of the blockchain, and the ability of Chinese citizens to use decentralized protocols and applications is one of the best examples we have of its early implementation.