Blockchain is a system of adding records, known as blocks using cryptography. It is made up of a cryptocurrency wallet designed to support digital currencies such as Bitcoin, Litecoin, Ethereum, among other coins. When the first cryptocurrency (bitcoin) was launched, it was difficult to imagine how an innovation could change the world’s regulations and how to do business across many industries.
Today, blockchain is taking over as the technology to take the world to the next level. One of the many beneficiaries of the unlimited benefits of this new technology is the gambling industry. As it stands, the industry is reaping massively from many companies embracing the proactive technology that has seen, among other benefits, safer online transactions.
Online casinos may have opened the way for newer innovations, but crypto gambling gives the industry a whole new look. Besides being able to play a casino dice game from the comfort of your home, bitcoin gambling enables you to play at an undisclosed location where gambling is illegal without breaking any rules.
Blockchain in Casinos
Initially, casinos were viewed as hubs for fraud and money laundering, but that narrative has since been dismissed as entirely wrong and misleading. People feel safer playing at online casinos and paying using cryptocurrencies. All the benefits are there for everyone to see, and with more and more stakeholders adopting crypto payments on their respective platforms, confidence is growing among users.
The need for transparency in casinos led to a rethink in measures put in place to lure more customers. It is believed that casino operators had full control of results and betting outcomes as they could manipulate systems. The introduction of blockchain is a breath of fresh air for players and operators alike, as there will be an increased number of gamers owing to the fact that they feel more confident.
Also, not everyone is comfortable sharing their personal details online. Crypto gambling in casinos means that there will be very little data exposed, leaving hackers and illegal data miners with nothing. Security in blockchain casinos cannot be breached or compromised, as there are no intermediaries who can alter information at any cost.
Below, we are going to delve into the impact of implementing blockchain in casinos.
#1. Transparency and Trust Among Gamblers
Transparency will be one of the most significant benefits of blockchain in the gambling industry and across several other sectors. Where there were talks of fraud and casino operators engaging in mischievous methods to make money out of unsuspecting gamblers, blockchain guarantees a hundred percent transparency. Gamblers can place bets and play their online games with full trust that the outcome will be fair and totally beyond third parties. Blockchain technology uses smart contracts that verify all records on a ledger network. That means not even the slightest alteration can be made without authorization from all other network members.
#2. Minimal Fraud
One of the significant contributors to the slow growth of the gambling industry was fraud. Many prospects were afraid of losing their money in casinos, but even with existing casinos putting in place stricter measures on their platforms, that was not enough to lure many customers to gambling. There are fears of hackers getting into casino systems and stealing personal data from unsuspecting online users.
The advent of encryption and blockchain technology means that customers can enjoy their favorite games without fear, thanks to the distributed ledger system. Hackers have no way of accessing information and cannot withdraw winnings from user accounts. In the new system, winnings are safely deposited to users’ blockchain wallet.
When Bitcoin was launched, decentralization was the primary idea. Blockchain offers a decentralized system that ensures security, consistency, and above all, levels the ground for all users of any given platform. Anyone can become a member of a casino, regardless of their geographical locations.
Under normal circumstances, online casinos asked for a lot of personal information from new users. That would include sensitive bank details and credit card information. That was necessary for user verification, but it meant spying cyber crooks would easily invade people’s privacy and steal money.
Besides, it was a cumbersome process for customers. The invention of blockchain shifted to total anonymity, where there was no longer any need for sharing personal information during transactions. Logs created for transaction are one-time-use logs that cannot be reused or duplicated.
#5. Reduced Cost of House Edge
Aside from reduced cases of fraud and addressing privacy issues, blockchain cuts down expenses significantly. There are usually some irregular fees for ordinary bank transfers, but the blockchain system provides a much cheaper way of gambling. It means there are higher profits for gamblers as systems are automated, transparent, and are also swift to go through, regardless of the amounts being transacted.