The blockchain technology has been creeping its way into mainstream media since 2009. Now, more than ever, Google searches related to the decentralized technology are at a record high. Industries are fast adopting the technology with the casino industry leading the way. But how is the technology exactly helping the online gambling platform?
Enhancing Trust and Transparency
Gamblers have always had trust issues with online casinos. Scam accusations, games not being provably fair and technical issues are some of the challenges players face on the platforms. As a result, many players no longer play on Internet-based platforms because they believe the cards are stacked against them.
With the advent of the blockchain, it’s possible to prove games and view casino records on a shared platform. Using smart contracts can help build trust as gamblers enroll for jackpots. Money can be held on the contracts until a winner is declared. The smart contracts can’t be broken, which means the casinos have no way of stealing from users.
Faster, Convenient Payments with Cryptocurrencies
The blockchain is the network through which cryptocurrencies like bitcoin are powered. There are over 1000 coins, some of which facilitate instant payments. Unlike fiat currency, bitcoin and altcoins can be accessed and used to make payments globally. Anyone can own crypto and use them to pay for services on casinos.
A casino that accepts cryptocurrency payments has a chance to become the online poker player’s home. They can process payments fast and avoid the hassles associated with completing payments in some countries. Players don’t have to wait days to receive their money. With bitcoin payment, the money is processed within minutes.
The future is bright for players who dislike the inconveniences of centralized platforms. Whether it’s due to poor customer service or a lack of transparency, the blockchain can change that. The technology has the ability to support gambling platforms ran over a distributed network.
Players can take control of some aspects of management. They can view records, vote on what games should be added and share some of the profits made by the company.
With a decentralized casino, anyone can become a member. The blockchain allows distribution of power, averting any possibility of a government or a person shutting it down. With no government interferences, casinos will allow anyone to join and play at will.
Prediction markets are not a new thing, not on the blockchain or the Internet. Contract markets have existed for hundreds of years. But all along, most of them were managed using centralized mechanisms. Cases of theft and scams have spurred these markets, particularly on online casinos.
By using the blockchain’s digitized ledger, casinos can create blockchain-based jackpots. Players can predict with confidence knowing the results will be displayed publicly on the ledger. The casino can add as many jackpots as possible and gamblers will continue engaging with no mistrust, like it works on Augur blockchain markets.
Provably Fair Games
Some casinos indicate their games are provably fair. But with no means to prove it, players often have no choice but to play even on games to favor the company. With the combination of cryptography, the blockchain, and smart contracts, casinos can build systems to check the fairness of a game easily.
Casinos will continue to make profits. Players will have a way to prove the games are fair. With proper management and great games, both the company and gamblers will be happy in the long run.
Currently, casinos prove their games are fair by linking their sites to third-party game auditors. The auditing firms are fair and may not audit every casino game. By contrast, the blockchain is expandable. It can hold thousands of records and as long as there are means to prove games’ fairness, there will be no need of auditors.
Reducing Costs of Operations
Often called house edge costs, casinos have expenses they must deduct before paying out players. If the costs are high, the companies will pay out lower percentages. The blockchain can help lower costs of operations.
To start with, blockchain centered casinos have fewer license fees to pay. While traditional casinos must acquire lots of licenses to operate in different countries, blockchain casinos don’t. Most bitcoin casinos, for example, only have licenses from a single country. They rarely pay taxes to the countries they serve and have fewer overhead costs. If the blockchain is used to automate records, house edge costs become much less than those incurred by regular platforms.
With the addition of benefits of crypto payments, bitcoin casinos can make more profits than regular casinos. Consequently, progressive casinos can make more payouts and attract a higher number of players to their platform.
Fraud from Hackers
Casinos are often the receiving end when players have issues with the platform. In recent years, gambling sites have become frequent targets by hackers. Dishonest players defraud the sites by making chargebacks after playing casino games. Attackers attack casinos systems with the intent to steal their funds. Sometimes hackers have hijacked games and demanded ransom.
The blockchain is a secure network with the ability to enhance casino security. Through its distributed network alone, hackers can’t penetrate a platform unless they compromise all nodes. Crypto payments eliminate chargeback fraud from players. Staff members who interact with players to defraud the platforms are kept at bay since all communications can be programmed to channel via the transparent platform.
Before the blockchain, all casinos require every player to create profiles and complete anti-money laundering verification. Registration is still a nightmare in some casinos. Players must supply an umpteenth of personal documents to play.
Thanks to the blockchain, privacy coins and browsers like Tor, players can conveniently gamble anonymously. You can create an account but you will be identified using cryptographed characters.
With the help of VPN and casinos’ security techniques, gambling anonymously is no longer a dream. There are more than five gambling sites that support anonymous accounts. The sites are secure and efficiently run.
The blockchain is one of the fastest growing industries. Barely a decade since its launch, the industry has already attracted the attention of fortune 500 companies. Governments around the world and industries are looking for ways to tap into its potential.
The casino industry has already identified ways the blockchain can help gambling sites increase efficiency. Through its distributed management, security and transparency, the technology is projected to lead a revolution of online casinos.