Recently, we can see that online gambling houses have actively implemented blockchain. The industry is one of the early adopters of the technology. The development of BTC casinos is even faster than those accepting fiat money. Players and owners of online gambling sites understand the benefits that come with crypto casinos, such as the higher level of security and speed of transactions.
How Blockchain Works
Blockchain is characterized by transparency, security, and decentralization. It consists of a chain of blocks that store data, which cannot be changed and is irreversible. The blocks are linked in chronological order. Blockchain is decentralized, meaning there is no one governing authority. The system is managed and regulated by all participants.
The use cases of blockchain are different, but it’s always about keeping data safe with no single governing body. For instance, supermarkets can receive full information about their shelves’ goods. The starting point can even be the origin of pouring water to raise vegetables or fruits, ending with the driver’s experience who delivered it to the storehouse. Every new action with the product is added as a new block without the possibility to change any of them.
When it comes to cryptocurrencies, blockchain records transactions and serves as a digital ledger. All participants can view the records, but no one can change them. Anonymity is maintained since everything is encrypted, and only owners can decrypt them thus revealing their identity.
Cryptocurrencies and Online Casinos
Online casinos use the benefits of blockchain and cryptocurrencies to the fullest. These technologies transform digital gambling sites into platforms with guaranteed transparency, security, and anonymity. Add speedy transactions and traditional licensing requirements, and crypto casinos become a tempting gambling destination with fair winnings.
Let’s review the impact of blockchain technology on cryptocurrency gambling sites in more detail.
Anonymity
Anonymity is among the major arguments why people play at crypto casinos. Using digital assets means a punter is faceless for everyone on the gambling platform. Even site owners don’t know the personal information of the player, not to mention scammers or governments.
Not all countries allow gambling, with many loyal ones requiring licenses from operators and setting restrictions. Playing at blockchain-based sites allows a punter to present only the info about a valid wallet, thus staying anonymous. It opens the opportunity to play from anywhere without worrying about being detected.
Transparency
Another benefit that blockchain brings to the table is transparency. Many gamblers don’t believe in the fair distribution of winnings as the RTP (return to player) cannot be checked. The technology helps to run the gaming process open for everyone and see the following elements:
- winner/loser in a particular game
- amount of money bet and won
- whether the client claimed the reward
Casinos cannot cheat with this info as everyone can check it, allowing to increase the transparency of online gambling. Before a game starts, the system will generate the sequence of random numbers and save it on the blockchain, which it will retrieve once the game starts. After that, a hashcode of the sequence will be generated. After the results of the game are declared, gamblers can check the pre-generated results to make sure the game is not rigged.
Security
Huge money always attracts scammers, but with cryptocurrencies, things are much more trickier. Starting from system reliability and ending with data storage — every stage of crypto gambling is protected. Thanks to the decentralized nature of the blockchain, the information is scattered over a significant number of servers. Thus, it requires more time, resources, and effort to hack or steal it.
Faster Payout Process
The variety of payment options has appeared as the market’s reaction to particular problems. A typical issue in the online casino industry is the speed of transactions, especially when it comes to banking accounts. The latter also means no anonymity for the punter, as card credentials are available to third parties. The e-wallets have made the process fast and safe enough but require additional money conversions, leading to extra fees.
Cryptocurrencies resolve both issues simultaneously. The absence of governmental and other side control reduces transaction fees. The speed of both depositing and withdrawing operations is almost instantaneous.
Final Thoughts
Everyone knows and uses the advantages of the Internet, which turned online gambling into a profitable business. However, many digital gambling operators don’t pay enough attention to gamblers’ headaches. This niche is also a target for scammers and big money fraud. Blockchain overcomes the aforementioned problems, making cryptocurrency casinos an island of safe and fair gambling. Decentralization guarantees better protection and weeds out malicious individuals, while the speed of transactions and anonymity ensure the best experience.