While some people don’t believe in anonymity, it truly matters for everyone. Its absence can ruin your life forever. If you’re an online casino player, anonymity helps protect you from cybercriminals, and that’s one of the perks of blockchain for gamblers.
Blockchain technology is slowly creeping into every industry. In the coming years, the world will feel its presence like never before. The good news for gamblers is that online gambling is among the sectors blockchain is expected to connect with to a deeper level.
A significant issue with traditional online casinos is that they intentionally hide or partly conceal data, like gaming results, winnings, and payouts, from public scrutiny. Blockchain integration will likely resolve these concerns, which have been irking gamblers since the industry extended to the internet.
What Is Blockchain Technology
Blockchain is a shared, permanent ledger. It streamlines the process of logging transactions and monitoring assets in a business network. Information is stored in a way that makes it virtually impossible to alter, hack, or cheat the system. Essentially, blockchain is a digital transaction ledger duplicated and distributed across the whole network of computer systems on the blockchain.
Ever since its inception in 2008, blockchain has been useful in various things. It serves as the platform for Bitcoin peer-to-peer transactions. But after the introduction of smart contracts, blockchain has taken on more complex functionalities. Individuals have faith in the blockchain concept due to a few key features, including accessibility, decentralization, and privacy.
Casinos grabbed the opportunity to employ blockchain for different transactions. Firstly, making payments for online gambling and games. Blockchain provides gamblers with fast and convenient deposits/withdrawals as well as quicker turnaround times. Needless to depend on corporate companies and their less stable servers. Also, since anybody with cryptocurrency is welcome, blockchain expands the customer base.
Could the Blockchain Provide True Anonymity for Gamblers?
Since blockchain ledger is public, preserving anonymity is a daunting task. Blockchain goes hand in hand with cryptocurrencies, serving as their underlying technology. Among the chief characteristics of cryptos is that they let users perform anonymous transactions.
When talking about crypto transactions, maintaining confidentiality becomes imperative. That is to guarantee transaction security, which is otherwise not feasible in the existing fund transaction system. Most platforms involve systems and methods that facilitate publicly defined computation but preserves data privacy.
Bitcoin is pseudo-anonymous. Meaning, it links an individual to a public Bitcoin address, but nobody knows the exact name or address. Blockchain is verifiable, which means you can check every transaction. But the catch is that you can’t determine who made the transaction. It keeps everything hidden for various reasons. These include maintaining privacy, law-enforcement related issues, and company-specific information.
How Blockchain Is Disrupting the Industry for Gamblers
Blockchain utilization has undeniably addressed a lot of issues related to online casino gambling. Since blockchain is a decentralized system, no single person or organization controls the recorded information. That reduces the risk of hacking and makes the digital ledger always accessible.
In the gambling industry, blockchain technology lets cryptographic technologies-based lotteries, online casinos, and games use transparency and accountability to ensure fair play to gamblers. With that, they can prove that they can’t interfere with the game processes. As a result, they gain a competitive edge over their centralized counterparts.
In addition to fair play, blockchain technology also allows for more robust personal information security, gambler privacy, and quicker transactions via cryptocurrencies. Here are more ways in which blockchain is revolutionizing the industry for gamblers:
At conventional casinos, the number of players at every gaming table is often limited. You need to go through a lengthy verification process. That involves providing several documents and accomplishing countless forms. It’s a pain for gamblers, especially those who hit the jackpot, as they can become prey to criminals if their identities are exposed.
Currently, blockchain-powered gambling platforms aren’t subject to the same regulations as their traditional counterparts. Meaning, they won’t require you to divulge any personal information. You can stay anonymous, even when you win big. Blockchain also assures you that hackers can’t steal your credit card details and other sensitive information.
It’s no secret that when you play, the betting companies make money. But hardly anyone has an idea as to what happens “under the counter.” What’s even worse is that online betting operators are allegedly using tricks to make sure you don’t beat the house.
But that’s not an issue with blockchain technology, which offers just the kind of transparency gamblers need. The shared ledger gives you more control and makes online casinos more trustworthy. Even better, since transactions are only confirmable if they’re valid, it’ll be practically impossible for casinos to use their old tricks, if any.
Decentralization of Operations
Blockchain adds value to online gambling businesses through democratization, immutability, inclusivity, and security. It lets casinos create their tokens. In turn, gamblers have an opportunity to become shareholders. Meaning, they can help finance casinos and benefit from their growth through dividends.
Moreover, crypto utilization gives you more freedom. You can access games anywhere via your internet connection. The system affords a security that lets you become a casino member. Liberty and convenience from blockchain use can make gamblers more confident in playing online games.
Virtually every industry has reported losing money to fraud. Gambling is no exception. When a hacker penetrates the system, the criminal can exploit everything from your credit card to personal details. Old online gambling systems have plenty of vulnerabilities that make them easily hackable.
Top-notch security is among the most well-known attributes of blockchain technology. Blockchain systems boast airtight mechanisms that protect gambler and casino data from any security breach. Moreover, smart contacts let you cash out your winnings instantly. With this system, banks and third parties can’t confiscate your funds.
In a world where most jurisdictions deem betting illegal, gambling fanatics suffer. Location often restricts online gamblers. But by gambling with cryptocurrencies, you can make deposits/withdrawals in a broad range of currencies. That puts all players on the same page, wherever they are else in the world. What’s more, you can enjoy significantly lower costs since there’s no bank involvement in these transactions.
Crypto gambling also lets you bypass local betting restrictions without needing to turn to illicit betting services. Blockchain casino gamblers can play as many games as they want. All you need is a crypto wallet and a stable internet connection.
Lower House Edge Costs
The survival of the casino relies on paid staff and profits that satisfy shareholders. That makes house edge a costly affair for users. Compared to regulated service providers, crypto-only gambling sites have low overhead costs. That includes the payment to merchants, transaction costs, regulatory compliance costs, licensing fees, and tax if any. Therefore, blockchain-powered gambling sites can offer lower gambling transaction fees. Not to mention blockchain is automated to do tasks that used to be done by humans.
Online gambling is a promising industry. However, players are subject to regulatory restrictions. They are also prone to fraud and dishonesty from disreputable operators and fellow players. Moreover, dependence on third-parties sometimes leads to unfair games and monetary transactions. But all hope is not lost.
As you can see in this article, blockchain technology has enough features to transform a fastidious industry like online gambling. Blockchain has massive potential to disrupt the industry for gamblers, operators, and even regulators. However, blockchain systems and digital currencies have yet to witness mass adoption. And in the present circumstances, it’s safe to say that it’s still too complicated for most entities and consumers to embrace fully.
High-level technical knowledge is necessary for individuals to work with blockchain systems. Nevertheless, most tech innovations started that way and continue to conquer challenges. It may take time for some to wholly appreciate and embrace blockchain as a universal platform taking the place of traditional commerce and finance. But those who understand its perks and are already adopting it will likely stay engaged. Stick around to see what more blockchain has to offer for gamblers.