FunFair - The world's fastest Ethereum casino platform | ICO 22/06/2017



  • About FunFair

    FunFair is a decentralised gaming platform powered by Ethereum smart contracts. Thanks to our breakthrough technology, it is the first platform to solve the big challenges that have made other blockchain casinos unplayable. Our vision is a limitless universe of transparent, secure casinos that can be easily created by anyone, anywhere, where games are fun, fast and fair. That’s why we’re called FunFair.


    FunFair - Smart Casinos

    Create your own low-cost blockchain casino quickly and reap the rewards
    of our pioneering technology. Using the Ethereum blockchain, smart
    contracts and our own never-before-seen ‘Fate Channel’ solution, we can
    offer the ultimate casino experience – complete transparency,
    astonishing efficiency and unrivaled user experiences.


    FunFair - Fast & FairGames



    Using decentralised, open-source technology and Ethereum smart contracts, we can eliminate any doubts about game fairness. But transparency isn’t enough. Users should never have to wait for their next game, nor should anyone have to shoulder the burden of blockchain transaction fees for each spin of the slot, or hand of blackjack. Our ground-breaking approach to Random Number Generation and ‘Fate Channels’ delivers the seamless experience that 21st century gamers demand.


    FunFair - PureEntertainment



    Players are at the centre of everything we do, which means fairness, speed and better payouts are just the start. Our combined 40 years of experience building gaming and casino software means we will never compromise on user experience. Our great looking, intuitive games come preloaded with the platform, showing future FunFair developers what’s possible. And so you know we mean business when it comes to delivering a product, you’ll be able to test some of our games yourself before the token creation event begins.



    FunFair InstantRewards

    Funfair’s token, FUN, is the currency of this new ecosystem. It is the fundamental method of interaction with FunFair smart contracts, ensuring every participant is rewarded for their contribution. Users will buy FUN tokens as the chips in FunFair’s online casinos. Game developers will get paid in FUN. Casino licensees will finance their operation solely with FUN, and affiliates who bring in new players will be paid in FUN. Platform service fees such as Random Number Generation will be paid in FUN, and then burnt. Participate in our upcoming token creation event and you’ll join us on the FunFair ride of your life, as we revolutionise the world of online gaming.



    FunFair Roadmap




    FunFair Token in Brief

    Our token FUN will be used for all platform actions, including betting, lending, paying out players and compensating stakeholders. FUN will only be created during a single event commencing June 22, 2017 at 14:00 UTC. FUN should become more valuable and useful over time as additional FunFair developers and operators launch casinos and new games

    • Start Date: June 22, 2017 (UTC 2017-06-22T14:00:00Z) 

    • End Date: July 7, 2017 (UTC 2017-07-07T14:00:00Z) 

    • Cap: 5 Billion Soft, 12.5 Billion Hard. 

    • Price: 100 FUN/USD 

    • Founder Stake: 37.5% 

    • Advisor Stake: 2.5% 

    • Bonus Period: Up to 150 FUN/USD


    FunFair Games Details:

    Figure 1: 3D Roulette - one of the Many Games Built on the FunFair Platform

    Combined, FunFair’s founders have a proven track record of over 40 years’ creating innovative interactive
    entertainment products and have sold millions of games in the process. We know what it takes to
    make a good casino game great and now we’ve built the world’s first blockchain-based platform that is
    capable of meeting the demands of a high-quality online gaming experience.
    Our core team comprises more than ten full-time developers and we have already completed the first
    blockchain-based 3D games using the FunFair platform in HTML5. These initial games stand as a
    fully-playable proof of concept, demonstrating the advanced capabilities of FunFair’s platform and
    serving as inspiration in order to kickstart the ecosystem ofoperators and developers around the world.
    Games built on the FunFair platform run directly in the browser on desktop and mobile devices without
    requiring an app download, completely eliminating one of the major pain-points of player onboarding.
    Here are sample images of some games under construction (we have six in our launch suite). You can
    view more images and videos of these games in action on the website. They will be offered as playable
    prototypes prior to the token event to demonstrate the technologies and capabilities of the platform,
    including the first generation Fate Channel technology will be playable in at least one of the games



    Operators: Launch A Casino in 2 Clicks

    We’re not planning on launching just one online gaming casino — we have built a platform to effortlessly
    launch thousands of online casinos, hosted by operators and organizations of all sizes, anywhere in the
    world.
    Operators and developers who license the FunFair platform have the ability to create fully-customized
    player experiences for traditional games of chance such as slots, blackjack, roulette and baccarat. We
    want to enable anyone who wishes to build, publish, host and play them — and for all parties to be
    fully assured that every game is fair and trustworthy.
    Unlike any existing online gaming platforms or services, a FunFair license allows an operator to easily
    set up and host their own casino under a private label. Individuals or organizations will be able to
    select games from a marketplace and offer standard or VIP rooms with customized in-house bonuses
    for their players.
    When the operator is ready, the platform enables them to publish a full casino suite and go live in just
    two clicks.

    1.Developer Friendly

    FunFair’s platform is designed by game developers, with game developers in mind. The games already
    built demonstrate the superiority of the FunFair platform. No other platform has to date been able to
    offer instant, cost-effective real-money gaming to players and developers.

    2. ENS-Ready

    FunFair investors have already acquired several gaming-related .eth domains, including blackjack.eth,
    for FunFair operators’ and affiliates’ exclusive use. Full details on how to access these domains will be
    published in Q3 2017.


    Instant, Frictionless Gaming

    To date, developers have not been able to create blockchain-based games that are worth playing.
    Nobody wants to sit for a minute (or longer) while the dice roll waits for multiple blocks to be mined
    before it can report the result back to the player. Yet this is the state of blockchain gaming today. None
    of our competitors have addressed this shortcoming — not because they don’t recognize the issue, but
    because it’s a very complex problem that nobody has solved — until now. FunFair’s patent-pending
    technology does the hard work of making truly instant blockchain games available to everyone. This is
    what will win the market.

    1.Signup and KYC

    Self-sovereign identity technology from industry leaders including Consensys Civic and New Alchemy
    is coming to market later this year. Where possible we are planning to support these technologies to
    allow safe, private single-click sign-ups that take less than a second. We believe that every second of
    customer time saved during sign-up will double participation1.

    2.Putting Social First

    The FunFair platform has been designed from the ground up to encourage viral uptake. All casino
    games are designed for easy invites and sharing so that users can create virtual groups and play with
    their friends. Additionally, post- launch, functionality will be integrated which allows operators to
    grant affiliate revenue sharing to social players.

    3.HTML Only

    We’ve created a browser-based online gaming platform that utilizes the HTML5 and WebGL standards
    on both mobile devices and desktop computers to provide the rich 3D graphics to deliver a highly
    polished fast and responsive user experience that players of app-based games are used to
    .



    10x Cheaper Betting

    The sluggishness of legacy blockchain-based games isn’t their only limitation: Even if players were
    patient enough to play fewer than 30 bets per hour, they wouldn’t be prepared to pay the price. Not
    only can high transaction costs wipe out winnings for players, they can also severely impact earnings
    for operators.

     1.Current Competition is Unsustainable

    We have been actively tracking gas costs across multiple Ethereum blockchain-based casinos presently
    operating. Transaction costs to play a single hand of blackjack can exceed $1.00 and dice games can
    exceed $.75 per bet on average.
    A typical preferred individual bet stake is in the $1-$10 range — this is how the majority of real-money
    bets are staked globally. At these sizes, transactions fees can overwhelm the size of the bet.
    Even when a player wishes to make larger bets in the $20 range, the transaction costs can still
    overwhelm the house edge — in total an average 12% cost between house edge and fees. For this
    reason, only players willing to stake amounts greater than $50 generally play these games. Lowering
    gas costs is only a temporary solution because as ETH prices rise, fee costs will make bets such as this
    uneconomical once more.
    As part of our market research we contacted Encore Las Vegas, a high-end casino operator, to determine
    what percentage of their machines are used for high dollar bets. Encore’s representatives estimated
    that there were “definitely five” $50+ slots out of 1,000 machines in the entire casino (as of June 6,
    2017.) It is apparent to us that high-stake bets in excess of $50 will not become commonplace in
    typical use-case situations.




    2.Fate Channels: A Long-Term Solution



    Online games should be cost-effective, affording repeat gameplay without adding unsustainable
    transaction costs. Because ETH prices may continue to rise, pushing up gas costs in the process,
    we needed to devise a solution that provides bets at less than 1/100th of the current industry cost.
    Typical competitor costs today can exceed 10% per bet for players — our goal is 0.1%.
    We believe that we have created a long-term solution for transaction cost problems with a unique
    patent-pending implementation of State Channel technology, developed specifically for online gaming.
    We call this technology Fate Channels.
    A Fate Channel is a State Channel opened for the duration of a gaming session, supporting custom
    gaming messages between the FunFair client and server. The only transactions on the blockchain occur
    at the beginning and end of the gaming session. Because a gaming session is instant and can include
    hundreds of bets, our costs are an order of magnitude lower than our competitors.
    A complete description of Fate Channels, our Random Number Generation Scheme and the Technology
    Roadmap can be downloaded in the White Paper section at funfair.io.

    Serverless Operations

    FunFair has been engineered to be as attractive to online gaming operators as it is to players, eliminating
    server racks and stifling overhead costs of the traditional online gaming systems (that can run into
    millions of dollars to deploy). Our existing technology allows licensees much lower overhead costs for
    running a casino.
    By the time FunFair launches its v4 Fate Channel implementation the system will be entirely serverless.
    A completely serverless, employeeless peer-to-peer casino is vastly more resilient and significantly
    cheaper to operate than one which must deal with banking institutions, data center hosting costs and payroll management. We firmly believe our technology will be transformative for the online gaming industry.

    Links:

    Website

    Team

    White Paper Commercial

    White Paper Technical

    Blog

    Facebook

    Twitter

    Reddit

    Slack











  • FunFair (FUN) Exchange Announcement:

    Funfair Listed on:

    EtherDelta:FUN/ETH



  • Funfair token (FUN) presale raises $26 million in 4 hour

    Investors back blockchain gaming pioneers to build fastest Ethereum-powered gaming platform using breakthrough Fate Channel technology

    Tech entrepreneur Jez San’s latest venture, FunFair Technologies, has raised a landmark sum from the presale of tokens that will eventually power every aspect of its blockchain-based gaming technology platform. FunFair is designed to deliver unrivalled transparency for consumers and efficiency for casino operators.

    Slated to last a maximum of 15 days, FunFair’s Phase 1 Token Presale on June 22 sold out in just 4 hours, having reached its hard cap of $10M in contributions made using the Ether cryptocurrency. FunFair also received more than $15M in Bitcoin and other cryptocurrencies from individual contributors as well as institutional funds, including Kryptonite1, Block Tower Capital, and Pantera Capital.

     

    I’m thrilled that the blockchain community and institutional investors have so emphatically backed the team, our vision and the progress we’ve already made,” said Jez San OBE, founder and CEO. “Now it gets even more exciting as we work towards a live platform and the creation of a truly fair, transparent and player-focused gaming world.

     

    FunFair is an incredibly clever Ethereum-based casino games company – decentralized, P2P, provably fair online gaming. My intuition is that Funfair is going to be huge,” noted Dan Morehead, Founder and CEO of Pantera Capital.

     

    Funfair will be one of the first practical applications to go live on Ethereum, and it actually solves a real problem of high casino fees and trust. It’s an Ethereum app that I could actually see my grandma using, which is pretty cool!” remarked Joey Krug, Co-Chief Investment Officer of Pantera Capital.

     

    FunFair has built the first production-ready state channels, powering incredibly quick games without compromising on provable security. They’re leagues ahead of other efforts. Jez is everything you could want in a project lead, and I believe FunFair will be an invaluable addition to the ecosystem,” said Charles Noyes, Analyst, Pantera Capital.

     

    “Funfair, the team and the technology, were very impressive. Gaming is a major vertical set for disruption by smart contract technology and Funfair are by far the furthest ahead in terms of functionality and playability.” George McDonough, CEO of Kryptonite1.

     

    I’m excited to see an experienced entrepreneur like Jez San bring Blockchain technology to gambling. Gambling is an obvious use case for Blockchain tech, but hasn’t yet been implemented in a user-friendly way – I’m looking forward to seeing FunFair change that,” noted Ari Paul, Founder, Block Tower Capital.

     

    Jez and the FunFair team are fantastic. I’ve known Jez since 2013, and it’s been a privilege to work with his team defining the token mechanics and creating the ultra-efficient, token sale contract. I’m looking forward to the next phase for FunFair!” said Peter Vessenes, Managing Director of New Alchemy.



  • FunFair (FUN) A model for future token sales


    Founders Jez San, Jeremy Longley and Oliver Hopton have a proven
    track record of over 40 years creating innovative interactive
    entertainment products and have sold millions of games in the process.
    The team went public with their plans in early June, publishing
    commercial and technical white papers, news of its Token Presale and an
    early platform prototype with casino games playable on an Ethereum test
    network, using FunFair’s unique Fate Channels.

    FunFair’s Token Presale took place against the backdrop of recent Initial Coin Offerings (ICOs), which have placed enormous strain on the blockchain, causing global disruption and shutting out potential investors. FunFair delivered an orderly sale with no blockchain disruption and no fraudulent interference thanks to a number of ICO innovations:   

    • FunFair was the first to use the Ethereum Name System (ENS) in a Token Sale, directing people to ‘funfund.eth’, in addition to providing a hexadecimal Ethereum address. This resulted in a more secure investment channel, reducing opportunity for fraudulent activity.
    • New Alchemy, the advisers and managers of the FunFair Token Presale were responsible for the gas efficient, Multi-Mint Technology that enabled FunFair to accept not only Ether, but also Bitcoin, ZCash, and selected ERC20 tokens.
    • FunFair is implementing a two-phase token event strategy, including a limited Phase 1 Presale enabling early adopters and investors to participate, followed by a larger Phase 2 event due later in the year.
    • Combination of VIP and community outreach maximized both volume of participants and total USD raised, with over 1,500 transactions to the smart contract, evidence of the broad participation base sought by the team.
    • Soft cap and further 4-hour sale period enabled all investors to participate within the short time window.

    Read more about FunFair’s PreSale in this medium post by Ethereum Foundation developer Nick Johnson and advisor to FunFair “Token Sales Done Better: FunFair”.

    The FUN token has already been listed on one cryptocurrency exchange including 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.

    According to FunFair’s roadmap, its development team will now focus on more advanced iterations of its proprietary Fate Channel technology, a larger suite of games including Roulette and Blackjack, and an Alpha release of the platform before the year’s end.



  • FunFair (FUN) Debuts Fastest Online Roulette


    We’re pleased to announce the world’s fastest blockchain-based Roulette game. The game can be played using “test Ether” – have a go here: showcase.funfair.io.

    Using our breakthrough Fate Channels technology, FunFair delivers the fastest, most cost-effective, fun, and fair online casino games.

    In addition to beautiful hi-res graphics, the new FunFair Roulette game has the lowest fees (gas costs) paid per transaction. Players only pay at the beginning and end of each session – not each roll of the dice like most other games. As a result, players can receive the biggest profits without delays or withdrawal fees – even during long sessions that most players prefer.

    Players will need “test Ether” to play the new Roulette game. In due course we will issue free, test versions of our FUN tokens to play our games. FUN tokens power every aspect of the FunFair gaming platform.

    We’d love to hear your feedback; please join the FunFair Community group on Discord #showcase-feedback if you haven’t already. You can register at discord.gg/rwETqSP.

    Thank you,

    Jeremy Longley Co-Founder & CTO FunFair Technologies



  • FunFair New FUN Token Contract

    Dear FunFair Community

    As you might be aware there were some minor tweaks being made to the FunFair token contract.

    The changes are going live right now as we speak (10am Pacific time)

    The old token contract will no longer be operational, and no token transfers will work using it any longer.

    The new FUN token contract address :  0x419D0d8BdD9aF5e606Ae2232ed285Aff190E711b

    All balances of every address will contain exactly the same number
    of FUN tokens of the new contract that were contained in the old FUN
    contract.

    Bittrex is making this change as we speak so trading should be able
    to continue.  We’re contacting EtherDelta so they can make the change
    but in the meantime, you can use the new token contract address

    Trading on the old FUN contract will terminate at 6pm UK time, 10am
    Pacific time.   Trading on the new contract will be restarted 5 minutes
    later.

    Have FUN!



  • FunFair (FUN) Mirror, mirror on the wall

    The FUN token is the underlying currency of Funfair’s gaming economy.

    Approximately 17 billion FUN tokens have been created. The supply is finite by design – no more will ever be created – and will reduce over time as tokens are burned through a number of network processes. The FUN token enables Funfair to develop and market to gaming operators so they can offer a variety of distributed gaming models to their audiences.

    Funfair’s decentralised casino games bring gaming into the 21st Century by disrupting traditional land based and online casinos in a number of ways, and these bring value to the underlying economy.

    This blog post addresses the value added to tokens as the ecosystem develops over time.

    Who is the fairest of them all?

    Funfair offers unrivaled fairness. No rogue operators, no rigged games, no risk of interference. Total control over game security, data security and payments. For the first time, end users – the casino player – can be certain, instead of having faith, that they’re getting a fair deal.

    By using Ethereum Smart Contracts and our own internally developed Fate Channels to execute each game, and the Ethereum blockchain to publicly record each result, our platform delivers provable fairness and full transparency without any loss of efficiency or time. More on the science behind this in a future blog post.

    Our provable fairness extends beyond the existing initial deterministic random number generation to ensure neither the house nor players can tamper with our games. Funfair has designed every aspect of the game provably fair at a granular level – with play by play trustless verification.

    There can be no means of dishonest play from either the operator or player.

    Fair play, fair competition makes better business

    The traditional online gaming world is currently dominated by a handful of major operators.

    Strict regulation, compliance and licensing mean that even with a loyal audience, smaller operators struggle to compete. Often prohibitive operating costs squeeze margins and reduce competition. Trusting small or new operators is an issue for players and affiliates alike.

    With Funfair, becoming an operator is quicker and easier than ever before. Players won’t need to make a judgement about the trustworthiness of an operator. They can simply play with absolute certainty of the integrity of each game, and of the automated, decentralised payments system that the FUN tokens enables.

    If it can be bet, it can be won

    Funfair’s platform makes it impossible for operators or developers to alter the game payout mechanics, and for players to defraud the house. The operator can therefore focus many of the resources previously dedicated to payments, support and infrastructure to marketing, growth and regional compliance. Along with obvious benefits to the house and the player, these new levels of transparency can also offer regulators ideal solutions in their quest for operator integrity and player protection.

    Unlike traditional online casinos and first-generation cryptocurrency casinos, players will fund games directly from their FUN token wallet. This greater degree of control over their funds delivers both enhanced levels of protection from inefficient, rogue or bankrupt operators, plus an improved user experience with none of the traditional delays in cashout processing times. For operators, this eradicates the onus on transaction processing, and removes the cost of fraudulent activity and chargebacks.

    Removing the need to send funds to an operator wallet and instead playing direct from your own further protects players by reducing the risks of error in sending funds, those funds being intercepted or operator wallets being compromised.

    The Funfair platform locks into smart contracts only those funds wagered on that hand or spin, and they can only be released to either the player or the operator once the game outcome has been determined.

    While the player commits their wager to the contract, the operator must also provide the maximum sum that the player can win, to ensure automatic payment whatever the outcome (e.g. in casino games such as slots where a range of payout odds is possible). This ensures the operator is actually able to commit the funds that can be won. And should the player win, they are immediately paid their winnings along with their original wager.

    This is in stark contrast to the issues that can arise when significant sums are won in traditional online casinos who offer huge progressive jackpots. Some operators are not in a position to – or seek to avoid or delay – paying out, using terms & conditions to pay in smaller installments after significant gameplay and background verification.

    Many of the largest promised jackpot games – Megabucks, Wheel of Fortune, Jeopardy, The Price is Right – pay out jackpots as an annuity over 25 years, with no recourse should a player ask for the full sum.

    With Funfair’s games, the smart contract removes much of the administration, cost and friction on both sides of the wager, simply releasing funds to the appropriate party once the games has ended.

    With Funfair then, if the player can bet, they can win.



  • FunFair (FUN)  - Launch new games


    Today our dev team added three new games to the Funfair Showcase lobby, giving you both more games to play with, and another working prototype which uses Fate Channels on an Ethereum test network.

    Our new games

    Visit the Showcase page and you’ll see:

    • Baccarat (Blockchain lobby)
    • Craps (Local lobby)
    • Once Upon A Time slot (Local lobby)

    As with our other Fate Channels-powered games, Baccarat is now played with test Ether, each hand uses Ethereum smart contracts to run the game logic and the results of each session are recorded on a test Ethereum blockchain. You’ll need to use an Ethereum-compatible browser or plugin such as Metamask to connect.

    Craps is a new addition to our showcase, and once you’ve figured out (or given up trying to understand) the rules, it runs locally in your browser. The full-fat Fate Channels version is on its way!

    Enjoy!

    The Funfair Team



  • FunFair (FUN) Randomness is a big deal


    This blog is a repost of a comment made by FunFair founder Jez San in this Reddit thread on 8 August 2017

    Randomness is actually a very big deal and is what makes FunFair’s games so Fun (.. and Fair 😉 )

    Contrary to some beliefs, randomness most certainly is possible in Ethereum. The trick is how expensive and how fast it is. FunFair has advanced the field with its own unique State Channel implementation that’s optimised for gaming (and isn’t the same as what Raiden is working on, btw).

    We call them Fate Channels because they help us generate realtime random numbers that are fast and provably fair, but also each RNG provably comes from the same sequence, in order, so we can prove the house wasn’t selective in which random numbers it used on which game (another way the house could cheat in conventional gaming systems). Games need lots of random numbers. Every spin of the roulette wheel, every roll of the dice, every deck of cards needs lots of random numbers, and for the player to have a good experience, these need to be fast enough that the player isn’t made to wait an agonisingly long amount of time. The faster, the more zippy the experience and ideally, to play as fast as the player wants to play.

    In our Fate Channel implementation, the player and the house each contribute a part of the seed of the randomness, and the thing that makes it provably fair is that it’s committed in advance to the blockchain. It is a commit/reveal scheme, so the seed that’s committed in advance is shielded from view by anyone (the miner, the player etc) until after the games are played, and then the secret seed is revealed to prove that all games played in the prior session were fair, and the entire sequence of random numbers came from the same seed, in provable order. This method can’t be cheated by anyone – not the house, the miner, the player etc. We’re doing further research work to extend this technology to support fully peer to peer gaming.

    This fast randomness, coupled with Smart Contracts, allow the entire player’s game experience to be provably fair. The Fate Channels are a very efficient way to implement realtime games, especially when the player sits down to play multiple games (very common).

    They have some desirable benefits too, like near zero gas costs for playing an entire game session. The player pays a small amount of gas (less than one bet on most Ethereum games) to open the Fate Channel as they sit down to play a game. And all the games inside that session – even hundreds of games played in an hour – are zero gas cost. ‘The house’ pays the closing channel gas cost so the overhead to the player is insignificant, especially compared to other solutions. Often Ethereum gaming sites’ games have high and seriously uneconomic overheads to play (and usually slow wait times).

    To compare the benefits of this tech versus alternatives, we can split the market into three categories of gaming. Traditional credit card based online gaming, Bitcoin gaming and Ethereum gaming. We think the superior fairness of Ethereum games in general will eventually win out, as the player isn’t required to make a deposit that is held by the casino for a long period of time (unlike Bitcoin or credit card gaming).

    Also, the fact that the entire game logic and outcomes are transparent and provable is what makes Ethereum gaming the best player protection and fairness available in the marketplace. But usually this fairness comes with two costs.

    Most Ethereum games are slow to play (sometimes minutes per hand) because they usually wait for several blocks to be mined and receive their outsourced random number – and also they cost a lot of gas because they do unnecessary on-chain transactions that spam the blockchain with intermediate results. Some use blockchain randomness like the block-hash for their random number generation, which can be cheated by miners.

    FunFair is not only fair, but fun 😉 We achieve ‘fun’ by creating highly interactive and graphical games to a high standard.. but also because the reaction speed of the games is fast enough that the player experience is fun. FunFair might even be the ‘snow white’ of gaming… (the fairest of them all).

    Jez San

    Want to know more? Join our DiscordTelegram groups and come along for the ride!



  • The FunFair Economy (Part 1)


    The FUN token is the underlying currency of FunFair’s gaming economy.

    The supply is finite by design. A set number were created once during the Phase 1 Token Presale, and no more will ever be created. The total number in existence will also reduce over time as tokens are burned through a number of network processes. The FUN token powers every aspect of the FunFair ecosystem, and enables gaming operators to offer a variety of distributed gaming models to their audiences.

    FunFair’s decentralised casino games bring gaming into the 21st Century by disrupting traditional land based and online casinos in a number of ways, and these bring value to the underlying economy.

    This blog post addresses the value added to tokens as the ecosystem develops over time.

    Who is the fairest of them all?

    FunFair offers unrivaled fairness. No rogue operators, no rigged games, no risk of interference. Total control over game security, data security and payments. For the first time, end users – the casino player – can be certain, instead of having faith, that they’re getting a fair deal.

    By using Ethereum Smart Contracts and our own internally developed Fate Channels to execute each game, and the Ethereum blockchain to publicly record each result, our platform delivers provable fairness and full transparency without any loss of efficiency or time. More on the science behind this in a future blog post.

    Our provable fairness extends beyond the existing initial deterministic random number generation to ensure neither the house nor players can tamper with our games. FunFair has designed every aspect of the game provably fair at a granular level – with play by play trustless verification.

    There can be no means of dishonest play from either the operator or player.

    Fair play, fair competition makes better business

    The traditional online gaming world is currently dominated by a handful of major operators.

    Strict regulation, compliance and licensing mean that even with a loyal audience, smaller operators struggle to compete. Often prohibitive operating costs squeeze margins and reduce competition. Trusting small or new operators is an issue for players and affiliates alike.

    With FunFair, becoming an operator is quicker and easier than ever before. Players won’t need to make a judgement about the trustworthiness of an operator. They can simply play with absolute certainty of the integrity of each game, and of the automated, decentralised payments system that the FUN tokens enables.

    If it can be bet, it can be won

    FunFair’s platform makes it impossible for operators or developers to alter the game payout mechanics, and for players to defraud the house. The operator can therefore focus many of the resources previously dedicated to payments, support and infrastructure to marketing, growth and regional compliance. Along with obvious benefits to the house and the player, these new levels of transparency can also offer regulators ideal solutions in their quest for operator integrity and player protection.

    Unlike traditional online casinos and first-generation cryptocurrency casinos, players will fund games directly from their FUN token wallet. This greater degree of control over their funds delivers both enhanced levels of protection from inefficient, rogue or bankrupt operators, plus an improved user experience with none of the traditional delays in cashout processing times. For operators, this eradicates the onus on transaction processing, and removes the cost of fraudulent activity and chargebacks.

    Removing the need to send funds to an operator wallet and instead playing direct from your own further protects players by reducing the risks of error in sending funds, those funds being intercepted or operator wallets being compromised.

    FunFair’s Fate Channels lock into the smart contract funds wagered by the player and put up by the operator for the duration of the session, and those funds can only be released to either the player or the operator once the game outcome has been determined, and the Fate Channel has been closed.

    While the player commits their wager to the contract, the operator must also provide the maximum sum that the player can win, to ensure automatic payment whatever the outcome (e.g. in casino games such as slots where a range of payout odds is possible). This ensures the operator is actually able to commit the funds that can be won. And should the player win, they are immediately paid their winnings along with their original wager.

    This is in stark contrast to the issues that can arise when significant sums are won in traditional online casinos who offer huge progressive jackpots. Some operators are not in a position to – or seek to avoid or delay – paying out, using terms & conditions to pay in smaller installments after significant gameplay and background verification.

    Many of the largest promised jackpot games – Megabucks, Wheel of Fortune, Jeopardy, The Price is Right – pay out jackpots as an annuity over 25 years, with no recourse should a player ask for the full sum.

    With FunFair’s games, the smart contract removes much of the administration, cost and friction on both sides of the wager, simply releasing funds to the appropriate party once the games has ended.

    With FunFair then, if the player can bet, they can win.

    Alex Lawn

    Part 2 of this article, which focuses on the benefits of the features outlined above, will be published soon. To discuss this article with its author, join the FunFair Discord group.



  • FunFair Company Update - Exchanges,Tech, Road map,Games & More Update

    Pic: FunFair’s new offices in Camden, London courtesy of Atrium/LABS

    We’ve been hard at work developing the FunFair gaming platform, protocol and suite of launch games and you’ll be glad to hear that things are going well and are on schedule.

    We’re now a team of 22 and growing fast.

    The breakdown of job functions right now looks like this:

    Management: Jez (CEO), Jeremy (CTO), Rob (PM), James (Commercial/Ops)

    Leads: Oli (Lead Tech Dev), Paul (Lead Games Dev), Laurence (Lead Art)

    Marcomms: Alex (marketing & community), Cecile (PR and community), Dan (marketing, web and content), Louise (brand marketing)

    Tech devs: Dane, Mark, Will

    Games devs: Steve, Jase, Mark (audio), Joe (art), Kim (art), Dave (art), Natalie (art)

    QA: Nick

    In addition, we have outside contractors:

    PR: Spark PR (Eric, Katie, Kathryn, Emma)

    Token Advisers:  New Alchemy (JC, Ted, Dennis, Phil, Peter), Element (Stan Miroshnik)

     

    We’re rapidly expanding in all areas, especially games development and tech, and soon we’ll be expanding the marketing, business development and admin roles in the company. If you’re interested in joining the FunFair team, keep an eye on the Careers page or drop us an email at jobs@funfair.io and tell us how you can help!

    Our London office was already a tight squeeze in the beginning, so we have now moved to larger offices in Camden Market, surrounded by other cutting edge startups and successful digital organisations. That collective sense of being in the vanguard of tech progress will be a useful boost for the team during the long days ahead. Coincidentally the building is owned by Teddy Sagi’s new company Market Tech.  Teddy was previously the founder of PlayTech, one of several companies we’re modelling FunFair on. We like to think FunFair could be the disruptive crypto version.

    Treasury update

    As you probably heard back in June, the Phase 1 FUN Token Presale raised $26m in crypto at the time. Much of it came from institutions in the days preceding the launch.  The bulk of the funds raised were in Ether (ETH), which promptly dropped in value almost immediately after our token event, before we had the chance to sell any into fiat ($ or €). Almost every cryptocurrency except Bitcoin (BTC) dropped during this mini-crash.

    As a result, a few weeks after the 22 June token event – when ETH had been at $325, BTC at $2565 and BAT at $0.017 (of which we received $2.4m, and whose price then halved) – our initial $26m ‘token sale’ holdings dropped in value to as low as $15m.

    Although some investors believed we should have immediately sold all of the crypto into fiat to de-risk our position entirely, we didn’t get the chance. Also, it wouldn’t have been good value and we’d have taken a substantial loss had we done that at June/July prices.

    We decided on a treasury policy that would slowly sell down the crypto into fiat and take advantage of de-risking opportunities whenever they arose. We were fairly confident that ETH would return to its previous heights in due course so we focused on selling the other cryptocurrencies that were at or close to their price at the time of our token sale event, or close to an all-time high (ATH).

    BTC had just hit an ATH of nearly $3000 and was hovering around the token event price, allowing us to sell a portion. After the hard fork BTC went on a rally and recently passed $4500 offering us the chance to sell more BTC on the way up, effectively raising a little more fiat than we expected given our BTC holdings at the time of the token sale.

    BAT had also dropped significantly in price after the token event but eventually returned to and rose above the initial price. We felt that holding a large amount of BAT was a risk we weren’t comfortable taking, so we intended to liquidate our entire BAT holdings as soon as practicable.  That is now achieved – we managed to liquidate all of our BAT holdings at an advantageous rate when the price spiked, and we’re now holding that same value in BTC which we see as a lower risk.

    We also liquidated the other alt coins we were holding, which weren’t of significant value but it streamlines and simplifies our holdings into just BTC, ETH, and Cash. After the BTC fork we also sold our Bitcoin Cash (BCH), a little of which we had on an exchange and sold at $500, though most of it was sold between $200-300.  We sold the remaining BCH at around $600 in the last few days.

    In general we think we’ve optimised the sale of our crypto holdings and sold at close to and in some cases above the prices set at the time of our token event. We have yet to sell any of our ETH holdings as we think it will rise further over the coming months, with some major milestones being the Metropolis release, Devcon3 and other exciting infrastructure developments like Raiden and Plasma. Also, some big token sales (Bancor, Status, Tezos, EOS) are out of the way and there appears to be a bit of calm as smaller token sales have become the norm this last month or so.

    Almost all of our costs are in fiat – salaries, rent, hardware, legal and professional advisers etc – so it’s important for us to maintain a healthy fiat cash balance.

    Snapshot

    As of today (31 August 2017), we’re holding around $6m USD in cash (mostly in Euros) which will keep the lights on for many months. At our current size it would last more than two years but we’re rapidly expanding our team so the monthly burn goes up. At all times we intend to hold at least six months’ runway in fiat and will continue to sell our crypto assets as needed, or whenever there are good opportunities to sell well.

    Thus total holdings – today – are approximately:

    Cash: $6m

    BTC: 1500 ($7m)

    ETH: 50,000 ETH ($19m)

    Total: $32m 

    That gives us a de-risked cash flow in the business plus a healthy value in unspent crypto above and beyond the value raised at ICO. We also note that that to date the company has yet to spend a penny of cash and the entire running costs of the business to date have been borrowed from shareholders that are about to be repaid (circa $1m). This was because it took the company a long time to get a bank account opened (KYC these days is quite onerous for new companies).

    Company Structure

    We have a top co in Singapore called FunFair Private Limited that created and issued the FUN tokens and sold them in the initial token presale. Singapore is a blockchain-friendly but not gaming-friendly jurisdiction so our Singapore HQ remains solely a holding company and investment vehicle and not a trading company. FunFair Private Limited owns foreign companies that invest in and execute IP licensing of the games and technologies. FunFair has several middle co’s that hold IP, contract work out and do licensing. These are in Malta, Gibraltar and Guernsey, all gaming friendly jurisdictions. We have a bottom co in the UK that does actual development work under contract for the middle co’s and does not do licensing or any other function. We may have other dev co’s in the future.

    We believe this corporate structure serves our needs, is flexible and adheres to local laws and regulations. We continue to fine-tune to get best results and stay the right side of regulations, despite being bleeding-edge on the legal front of both blockchain and gaming, so we have to maintain continued legal advice in those areas especially well.

    Tech update

    Work on adding test-FUN tokens to the existing games has started and will be part of a soon-to-be-released update that will allow the use of FUN tokens to better test the systems.  As always, we don’t run on the main net because we aren’t a casino operator and wish to remain legal – both from a gaming as well as blockchain point of view.  The next few major updates will include elements of provably fair gaming (dispute resolution, proof of individual games etc) and peer to peer gaming (incentives, bonds, slashing etc).  Metropolis will be good for token based economies like FunFair’s, allowing the contract – not the games player – to pay for the gas (coming in Constantinople).

    In the coming weeks, our CTO Jeremy will be writing a technical blog with a more detailed update.

    Games update

    At present there are eight games on the showcase that are running today. They are all experimental prototype games that will continue to be enhanced before release.  They’re already pretty competitive with what’s out there, but they will get immeasurably better before release.

    Four are slots – with Alien, Pirates, Classic and Fairy Tale themes – which show not only different graphics and audio sets but also different gameplay and bonus games.

    We have four table games; Baccarat, Roulette, Blackjack and Craps. With the first eight games built, these represent something like 80% of the revenue that a typical online casino would generate in revenue terms, with Slots being the dominant game in the west and Baccarat being dominant in the east.

    We’ve almost completed our prototype Video Poker game (which is looking deliciously retro!) and we know this category of game has a dedicated following so we cant wait to hear what they think!  We will also try our hand at an ole’ fashioned blockchain ‘dice’ game. Some (yes, including me) have joked that all we have to do is strip out all the graphics, gameplay, audio and Fun from any of our other games, and introduce some slow delays and wait for a few blocks to be mined for every roll, and voila! – we have a blockchain dice game that’s competitive with the others. But that’s a little cruel  😉 !

    So we will actually try and create the best damn dice game we can muster. We’re going to try and interpret the brief a little differently than the rest and add some of FunFair’s special sauce and see what happens.  We don’t believe a dice game has to be underwhelmingly text-based and slow to be successful 😉  I can’t wait to see what our devs come up with.

    Our strategy for the games is to be able to launch the FunFair gaming platform with a suite of games that are highly competitive with anything that’s out there in the big wide world of online gaming and to largely ignore what’s going on from the current crop of existing blockchain games, which are not particularly competitive and offer little value other than the fact they take cryptocurrency as an input, which is hardly rocket science.

    In terms of production and entertainment value, many existing blockchain games are lacking and we intend to change all that. We want to show that blockchain games don’t have to suck and that players can have access to the best possible games yet still play in crypto and get all the benefits the blockchain and smart contracts bring to the table such as player protection (no deposit into casino custody), provably fair gameplay (not only the RNG, but also the entire gameplay in transparent smart contracts), etc.

    Our view on existing blockchain games is that they mostly survive because they have no blockchain competition.  ‘No Natural Predators’, if you will. If you were to compare them with their online gaming equivalents, they are unprofessional, low quality game experiences that offer little if any entertainment value and would not fly if they were not in crypto. In many cases, they are operated by anonymous owners, have high gas costs that are uneconomic in the real world, and have created little or any tech or IP of value, some of them outsourcing their tech to third party providers so they have little ownership or IP to their own solutions.

    Open Source strategy

    We take a commercial and pragmatic view on what and when we should open source. In the first instance, we have delayed open sourcing anything we’ve developed for mostly short term commercial reasons.  Why give away the farm when we don’t have to?  We’ve built everything ourselves and invented the tech we needed to accomplish our goal. As we see it, there’s a few big problems with open sourcing prematurely.

    1. Security

    As witnessed by the huge number of scams operating in this space, anytime you have a real money application that’s open sourced – like a wallet – you give the ability for scammers to fork the code and make it easy to do lookalike sites that steal peoples’ money or their private keys. This is the most common form of scam in Ethereum and has been suffered by the very excellent MyEtherWallet (which we love!) amongst others.  Our FunFair game platform is all about bringing absolute trust to the online gaming market for the very first time, and it wouldn’t serve anyone’s interest if we help the scammers get on board early in our life cycle.  This issue of scammers forking code and scamming people needs to be solved somehow, but in the meantime, whilst we as a community have no real solution to this issue, we don’t feel it serves the community or the players, to open source our code at this time. It helps the scammers much more than it helps the community.

    2. Commercially sensitive information

    FunFair has created its own tech and IP. We have not been waiting for anyone else to solve our problems for us.  In measurable ways this has put FunFair ahead of the competition in delivering practical solutions to online gaming on the blockchain and we feel it is the first commercially competitive solution that has a good chance at competing with incumbent (debit/credit card) online gaming markets.  Our games tech is much more FUN (..Fast and Fair) than other blockchain alternatives in part because we control the quality of the experience from end to end to ensure we have a platform that delivers the best possible gaming experience to the player (and suppliers and operators) in the ecosystem.  Why would we serve this up on a silver platter to our competitors?  We would prefer to let them do the work themselves, like we had to do. We put hard work and inventiveness into this solution. Our token holders will expect us to deliver a successful business and we achieve this by commercialising the Tech and Games that we’ve built.

    Helping the competition get a huge leg up seems unnecessary, but we think its likely they will get there in the end. We probably won’t have our Fate Channel technology all to ourselves forever but we’ve had a generous head start by inventing it ourselves and we’ll keep evolving the tech development and intend to continue creating technologically advanced and practical solutions to deliver gaming to the mass market.  There’s a very good reason the competition has tried to nail us for not being open source on Reddit and other forums – it’s simply so they can see how it works for themselves and copy or learn from it, whilst simultaneously pretending they didn’t need our form of State Channels anyway. If they want advanced real time gaming, we think they’ll have to do something similar for themselves and not rely on others to do it for them.

    3. Timing & IP

    We do intend eventually – to make large parts of our tech open source, but the timing of when is the right time to do this is flexible as the platform isn’t live (to the public) yet. We plan to open source the parts that we need to, well before the public release, so that we can do security audits and allow those that want to satisfy themselves that the games are provably fair to poke them as much as they want (and we’ll do bug bounties and audits at that point) – But there are also parts of what we’re creating that we don’t expect to be able to open source because they contain creative IP like graphics, art, design, gameplay elements etc. These are the special sauce that make one game different/better than another in a highly competitive market.  Compare our blackjack to their blackjack.  Compare our craps to theirs… or our roulette.. or our Slots.  Our games are highly competitive and we intend to keep it that way and not give away the special sauce.

    4. Third parties

    We’re creating a platform for games suppliers and developers to be able to publish their content for the gaming community, and we don’t expect they will want to open source their games (apart from the parts that need to be provably fair).

    5. State Channels

    Working on our own form of State Channels has given us optimum solutions for gaming that deliver what we need in terms of performance, cost and capability which will also scale appropriately to our long term needs. We called them Fate Channels, because everyone who creates their own State or Payment channels gets to name their own versions uniquely. The Lightning Network, Thunder Network, Flare, etc… are all Bitcoin-related payment channels while in Ethereum we have Raiden, Plasma etc.  They are ALL different yet similar.

    What we’ve built isn’t the same as Raiden, far from it. As we understand it, Raiden is great at sending tokens from place to place in a network via multiple hops. It’s perfect for something like a real time token exchange (and RaidEX is coming and we can’t wait for that). But at this time, Raiden doesn’t support generic state. We need more from our State Channels than just micro-payments. We don’t need multi hops at this time but we do need to share random seeds and deliver random numbers in real time to the games when they need them in a provably fair way, which is where our Fate Channels name came from. We also need to have player interactions sent back and forth between the player and ‘house’.  And when we move (soon) to fully peer to peer gaming with untrusted parties, we’ll have carrots and sticks for good and bad behaviour.

    Our solution is optimised for gaming and especially for real money gaming in real-time.  We haven’t seen anything that helps us deliver this as yet so we had to build it ourselves. The closest generic solution to what we need is coming, with Plasma, and we’ll be evaluating it carefully and hope it’ll be helpful to us in the future.  But we think that might be a ways off being able to support our needs, and meanwhile we’ll keep evolving Fate Channels to continue being an optimum gaming solution.

    Roadmap

    As stated in our original White Paper, we’re on a track to deliver the first release of the FunFair gaming platform, as well as a series of launch games to seed the market, by year end (2017). In some ways we’re ahead of schedule, especially on the prototype games development front.

    We’ve already started early discussions with both game suppliers and casino operators and we intend to start signing licenses up around the time we finish the platform. We don’t want to sign anyone up too far in advance as the platform is not yet fully featured and we’ve got work we need to do before it hits that point. Signing up game suppliers or operators in advance of having a fully working platform would just be a PR puff piece and quite hollow. We don’t believe we should be doing that. When we’re ready to sign real licensees up, we’ll be doing it for commercial reasons, not PR.

    Marketing

    The FunFair brand is still in its infancy, and although we’re proud of our unique identity so far, we want to continue to evolve. So we’re working on something which says more about who we are and stands the test of time. We’re also building a more effective website which can speak to the various audiences that need this gaming platform, and which can also inspire a new wave of FunFairers. We’re close to completing this part of the puzzle and you’ll see the results very soon.

    Exchanges and token liquidity

    As most of you know, the FUN token started trading on EtherDelta literally within seconds of the token being issued, and not much later was trading on Bittrex. These first two exchanges have served the token holders’ needs of being able to trade the token. The FUN token is currently listed on a few exchanges like Bittrex, EtherDelta, ShapeShift and CoinSpot.

    According to CoinMarketCap, token liquidity has to date been in the ballpark of $0.5m – $1m traded each day, sometimes more.  This week the token price has been in the range of $0.025-0.03. We may see liquidity improve as FUN becomes listed on more exchanges, which is likely to happen in the very near future.  Expect news on additional exchange listings in the coming days and weeks.  Long term we expect to see other exchanges list the token especially as they overcome their initial concerns that FunFair is a Casino Operator (it isn’t and will never be!) and appreciate that FunFair is a pure developer of the technology and games and is in the licensing business. The company expects to pass all legal and compliance checks.

    We have also tried hard to design the token mechanism to be close to the textbook definition of an App (utility) token, in that the token is used to play the games, and that all parts of the ecosystem utilise the FUN token (players, game suppliers, affiliates, casino operators, random number generation fees etc). We realise life could’ve been easier if we had allowed people to play for ETH (cash) and then paid dividends from the profits to token holders, but our lawyers rightly warned us not to do this as it would’ve risked us being classed as an unregistered security (like some of our peers).  We designed the token mechanism carefully with good legal advice to be compliant with where the SEC and MAS would eventually draw their practical lines in the sand.  We hope to always be the right side of the lines and will take steps to keep it that way and will evolve the token usage and business model to ensure we stay legal and compliant at all times.

    Phase 2 token sale – ongoing strategic planning

    Originally we considered doing a two-phase raise with Phase 1 being a presale that brought us most of the funds we needed to develop the technology and games, and Phase 2 bringing us the funding required for a large marketing budget to be able to build a consumer facing worldwide brand. Our gaming lawyers have since recommended that we focus on the development of the platform, tech and protocol, and leave the consumer-facing marketing to a multitude of casino operators and affiliates. With this new focus on tech development and less on the consumer market, we can lower our sights for fundraising and this changes our strategy entirely for Phase 2, compared to our original intentions as mentioned in the white paper and other publications.

    In the Phase 1 Token Sale, FunFair Pte Ltd initially sold 3.8B tokens, raising $26m USD. Founders retained an additional 2.2B tokens (37.5%) on an 18 month lockup that’s released slowly. FunFair also reserved 11B tokens for the Phase 2 raise which at the token presale price would have been worth $110m USD. Originally we had intended to sell most of those 11B tokens to new buyers and then distribute any unused tokens back to Phase 1 holders, but this no longer makes any sense and is no longer the plan.

    Under the original premise, most of the tokens would be sold and a small number would be left unused and distributed, but now that we’ve put to rest thoughts of a massive consumer brand building marketing spend, we no longer have the requirement for such a large Phase 2 raise. Also, if we were left with a large number of unused tokens, we would not be able to distribute them due to legal, tax and market reasons (which are probably all obvious).  Apart from all the other reasons, if a lot of tokens got distributed, there’d be a mass exodus and a lot of tokens sold on the markets, crashing the price and we don’t want to do anything that harms token value.  Quite the opposite…

    Instead we expect to burn a substantial amount of tokens to reduce the number of outstanding tokens, and we will sell a much smaller number in a highly targeted Phase 2 token sale that will be optimised to raise awareness and open up new markets (in Asia, etc). The rising value of our existing crypto holdings due to BTC/ETH price increases and the reduced requirements for funds in Phase 2 have enabled us to find more efficient ways to deal with the current overhang of tokens and better protect token value which benefits all holders equally.

    We’re working on a final strategy for the Phase 2 token sale right now with our professional advisers and intend to share details in the coming weeks.  These things take a long time to plan, especially as the token markets are affected by guidance from regulators and a fluid situation regarding liquidity and exchanges etc.  We currently aim to announce Phase 2 plans in September and execute the new more modest Phase 2 token sale most likely in October. We will also be spending time in Asia this month ahead of the token sale.

    That’s all for now, we’ll be back soon with a more detailed technical update. If you haven’t played any of our games yet, why not?! Head to our Showcase and tell us what you think. If you have any questions or want to stay in touch on a more regular basis, join our Discord or Telegram groups .

    Thanks for reading!

    Jez San & the FunFair Team



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