4 Ways Blockchain Technology Is Changing the Online Gambling Industry
Blockchain technology is a hot topic in countless industries and the media. For those who are unaware of what blockchain is, it’s essentially a ledger system that maintains records of transactions through the use of “blocks” that are chained together based on cryptography.
The blockchain is decentralized, meaning it’s spread out over innumerable nodes, and there is no one entity that controls the total system. This, along with other properties of the technology, make blockchain a game-changer for the online gambling industry and business as a whole. The following are 4 key ways that blockchain will change the industry for the better.
Blockchain technology is just touted to be one of the most influential innovations of the twenty-first century. One of the reasons people believe this is due to the transparency it offers. Each transaction that occurs in a blockchain is immutable—it is forever recorded on the blockchain, and it can never be hidden.
For someone who is gambling on an online casino, when they deposit cryptocurrency, that deposit is forever stamped in the blockchain. Similarly, whenever a player earns money and transfers the value to their chosen cryptocurrency, that transaction will also be in the blockchain for good. As these benefits are clear to many players and casinos, several bitcoin casinos have already opened up for play.
On these bitcoin casinos—or other cryptocurrency casinos—players can make deposits with their crypto and transfer earnings back to their secure digital wallet. Neither the player nor the casino can try to take advantage of the financial ledger.
The people who gamble online know that online casinos are safe. However, they also know that there are some inherent risks involved. Some websites may be scams, and other sites may use your personal information in ways you don’t agree with. Similarly, an online casino may not be built with the greatest security features to ward off potential hackers. Thus, they could be subject to attacks from hackers looking to steal your personal and financial information.
Due to these security risks, the addition of blockchain technology is ideal for both online casino owners and their users. Blockchain technology has inherent security features. Every transaction on the blockchain is encrypted. And each transaction that occurs on the blockchain must be validated by every node involved. This makes it extremely difficult for hackers to pick out transactions and manipulate them—something online casinos and players want to avoid!
Greater User Anonymity
Most gamblers like to be anonymous, especially in the case where an online gambler is from a country where the practice is forbidden. While those players have workarounds to gamble online safely, they still have to provide some sort of identification information in addition to either a bank account or credit card information. That need is no longer when casinos utilize blockchain technology.
Online gamblers will not need to go through the process of creating an account full of their personal information. They don’t need to provide financial information, a physical address, or any other sensitive data. Rather, online gamblers can create accounts with a username and their cryptocurrency wallet, and that’s it. They will need nothing else to make transfers to and from their wallet, gamble, and earn money.
With any service, whether online or in-person, the user collecting that service wants the experience to be as easy as possible. This means no jumping through hoops such as identity verification or slow processing of requests. Depending on which online casino you use, you may experience some inconvenience. You may have to go through several verification steps, it may be difficult to get your rewards sent to you, and your earnings may incur fees.
With blockchain technology-based online casinos, these inconveniences are non-existent. As mentioned above, you won’t need to provide personal information, credit card details, or bank details to play online. Rather, you connect your cryptocurrency wallet, and you make your transfers to and from the casino with that.
When you make a transaction on the blockchain, it’s verified virtually immediately. That means you’ll have your funds available for use instantly thereby improving your online casino experience. Similarly, when you want to withdraw your earnings, it can be done in the blink of an eye by transferring directly to your wallet.
The Bottom Line
There’s been a steady increase in attention placed on blockchain and cryptocurrency. This is for good reason, of course. The technology has already shown its ability to transform industries such as becoming the backbone for digital currencies, smart contracts, and more. As there has already been so much progress in blockchain’s utility, it’s no surprise that the online gambling industry will also be affected by the technology. Luckily, for both gamblers and online casino owners, these effects are positive as seen by the four major effects above.