How Blockchain Technology Is Helping the Online Casino Industry
The online casino sector is growing at an impressive rate. According to a report, the online gambling industry is expected to grow at a CAGR of 8.77% from 2019 to 2024.
One of the primary reasons for this steep growth of the online gambling industry is convenience. Gamblers can play their favorite games from the comfort of their homes. However, the biggest concern of gamblers is data privacy during online transactions. Fortunately, blockchain technology is here to save the day!
Blockchain technology facilitates the digital exchange of data, information, and other units that hold value while making transactions anonymous. It has revolutionized various industry verticals, including banking, messaging apps, hedge funds, and the online gambling sector.
Let’s quickly understand how blockchain technology is helping the online casino industry.
1- Maintains Anonymity
Blockchain allows you to maintain anonymity while making payments to online casinos.
Various online casinos accept Bitcoin as a form of payment where you do not even need to confirm your email address to make the transaction. Instead, you just need to send funds to the crypto address directly.
This means if you send cryptocurrencies to an online casino, the operator will not know your details like email addresses or phone numbers.
Blockchain technology allows you to get rid of the upper boundaries on game accounts that significantly accelerate the withdrawal of funds.
2- Eliminates Geographical Restrictions
technology eliminates the geographical restrictions that the gamblers face.
Making a cross-border transfer requires many intermediaries to perform the conversion and reconversion of the currency. Blockchain eliminates the need for these intermediaries by directly connecting owners and senders via a decentralized network.
Blockchain is not limited to a particular location, but the only necessary condition is internet access. Thus, by adopting blockchain for gambling, online platforms can tap into large international markets with no commissions.
3- Decentralize Everything
A decentralized network is something that is not regulated and governed by a single authority. No person or organization can exert some control over the blockchain system to manipulate the data or exchange recorded.
Blockchain technology provides peer-to-peer crypto networks that eliminate security risks.
Even if something happens, a miner can create backup node copies. The database is replicated and stored on a distributed database. This permits online gaming providers and users to roll back the game settings in case of a technical problem. They can also use a node copy if the original was damaged.
4- Improve the Fairness and Transparency of Online Gambling
One of the biggest benefits of blockchain technology for online gambling is transparency. All the gaming transactions, including your wins, losses, and payouts, are recorded permanently on the blockchain ledger.
As a public ledger, blockchain is always open for public scrutiny, meaning no online casino using the technology can cheat their customers.
Gambling results are stored inside an enormous decentralized database with its copies saved on thousands of computers. Gradually, new informational blocks with data are created, making a chain, making it impossible to manipulate the gambling results.
5- Guarantees Security
Blockchain enhances security. It eliminates fraud and ensures secure transactions. A smart contract is designed to digitally facilitate, verify, or enforce the negotiation or performance of credible transactions without third parties.
Thus, smart contracts, run on the blockchain, eliminates the need for human beings to perform functions. Smart contracts and blockchain wallets together, allow you to achieve maximum security while playing the game.
Users and casino operators benefit from instant payouts and operating in digital tokens rather than fiat. Besides, blockchain eliminates the need to share sensitive banking or credit card information online.
6- Zero House Edge
House edge refers to something that gives casinos advantage over the players. House edge is not set by casinos but by the games themselves, so no matter where you choose to invest your money, you can’t escape it.
However, new casinos are being released on blockchain platforms that promise zero house edge. This means you can enjoy your preferred games without being at a disadvantage. Theoretically, you have a 50% chance of winning.
Another benefit of blockchain-based zero house edge casinos is that they allow you to cash out everything.
The popularity of online casinos and gambling has increased over the years. However, users are still exposed to fraud, dishonesty, and regulatory restrictions from other players and casino operators. Blockchain technology is transforming online casinos, making gambling far secure and better with increased transparency. It brings a certain degree of trust that the casino industry desperately needs.