Blockchain and How It Is Affecting The Online Gambling Industry
Introduced back in 2008, blockchain has been used in different things. Over the years, blockchain technology has gradually crept into almost every sector and it’s evident that its effect will be felt more in the gambling industry. The online gambling industry is one of the industries that blockchain technology is highly likely to connect with more.
The biggest concern with many traditional online casinos is that information such as payouts, winnings, and gaming outcomes are partly concealed or intentionally hidden from public scrutiny. The adoption of this technology in the online gambling industry is highly expected to bring solutions to most of these concerns and many such problems that the online gambling community has faced since the first online casino opened its doors to its players.
Read on to know the profound effects of blockchain technology in the gambling industry:
Trust and Transparency
Internet casinos have over the past few years been accused of using scams and tricks to steal from players right under their noses. Technically, almost every person has heard of the notion, the casino always wins. There are a few proven cases of rogue casinos that have stolen from people and run off never to be traced again. For instance, if a player knows that the odds are stack against him/her due to lack of transparency, they will not trust the casino and will just walk away. As a result, if the players do not sign up with the casino, then there is no way an online casino will make money.
If blockchain technology is introduced to online gambling, it will significantly boost trust amongst customers and allow them to wager with confidence because the blockchain smart contracts confirm records on the shared ledger which can never be manipulated, thus increased trust and transparency.
If there is one thing that has been an issue for most players and operators in the gambling market, then it must be a fraud. Cases of online fraud have resulted in the industry experiencing significant loses. There are some players who might decide to act “smarter” and try to defraud the casino when depositing funds into their accounts or cashing out funds from their accounts.
Blockchain technology helps solve this issue through the provision of more secure ways to carry out transactions. The chains distributed ledger makes it very hard for anyone to change anything in the entire system. The winnings of the players are calculated automatically and set to the play. All of this can be attributed to smart contracts.
Paying With Cryptocurrency
Another important change that blockchain has bright around is the use of cryptocurrencies as an optional banking option. A better example will be an online casino that allows its customers to deposit and make withdrawals using cryptocurrencies such as bitcoin. There are some online casinos that have reported more transactions using bitcoin as compared to those made using other payment methods.
Accepting cryptocurrencies such as bitcoin creates the chance for customers to join and play at online casinos that are located far beyond their jurisdictions because the cryptocurrency is not based on the regulated payment methods. Also, the blockchain technology will significantly reduce the costs related to deposits and withdrawals to online casinos since it eliminates intermediaries like banks.
Conventional online casinos are often associated with different regulations and restrictions when it comes to most of their dealings. This includes asking the users to provide many documents when drafting and verifying their casino accounts. The process might be time consuming and lengthy. Also, the processes usually limit a large number of players who might be willing to join the online casino and play but are kept off by the lengthy registration processes.
Blockchain technology has come in to help resolve such problems with complete anonymity. This feature makes sure that users do not have to share personal details when carrying out various transactions.
The best example can be online casinos that accept cryptocurrencies such as bitcoin. To start playing here, the players are just asked to send the cryptocurrency to the address provided on the casino’s website. For this reason, there is no download required or even the creation of an account.
Nevertheless, this can go both ways, guaranteeing anonymity means ignoring KYC and AML regulatory requirements and this raises the serious question of the legitimacy of bitcoin betting sites. As a result, most of these bitcoin casinos are usually connected with prohibited activities.
Casino Membership and Token Holder
Blockchain allows online casinos and betting sites to develop unique currencies that may be used as currencies on their platforms. Zero Edge is a perfect example of such a scenario.
Zero Edge is a reputable operator in the betting market; they use ZeroCoin as their digital currency. All you have to do is buy the zerocoin tokens to become a shareholder on the gambling site.
In a world where there are some territories where online gambling is still not legalized, many gambling enthusiasts such as those living in the United States end up suffering. Most of them suffer simply since they do not know where to gamble legally. While there are a few online casinos that accept players from the USA, it is not easy to know those which can be trusted from some that are rogue. Blockchain has lately provided a more efficient decentralized platform where players can use the digital currency. The currency allows for very easy trade anywhere around the globe. All that a player needs is a reliable internet connection and they are ready to get started.
Also, unlike other conventional online casinos where withdrawals can take days to reflect in your account and in most cases have minimum and maximum withdrawal limits. Blockchain betting sites offer fast withdrawals and there are no limits involved.
Online gambling is a very promising industry, but one that is faced with many disreputable operators and regulatory restrictions. However, there is hope because the blockchain technology has the potential to fully revolutionize the gaming industry for online casino operators, players, and regulators. Make sure you stick around to see for yourself what blockchain technology will offer the online gambling industry.