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Impact of Blockchain and Cryptocurrency on Gambling Industry

  • Neelam Tyagi
  • Oct 19, 2021
Impact of Blockchain and Cryptocurrency on Gambling Industry title banner

Blockchain technology has transformed the world, it continues to remain one of the impressive innovations in the 21st century and many decades to come. Presently, the technology adds the greatest benefits in daily life of substantial industries such as the gaming industry. This trend is supposed to intensify only if enthusiasts focus on discovering amazing opportunities provided by blockchain technology

 

Existence of gambling has roots since the beginning of human history, and with the advent of the internet, online gambling has spread a lot and continues to extend as far as mobile connectivity escalates around the world. Blockchain technology has pushed this momentum through building gamling focused decentralized applications.

 

In the current scenario, online gambling has two leading cryptocurrency in use “Bitcoin (BTC) and Ethereum (ETH)” that are extensively used to deposit and withdraw at online casinos.

 

(Must read: Bitcoin vs Dogecoin)

 

In this blog, we will delve into the fundamentals of blockchain technology followed by the effective partnership created by blockchain and gambling industry- benefits, challenges and overall impact of cryptocurrency in gambling market.

 

 

Blockchain- an introduction

 

Blockchain is a method that tracks transactions through a globally distributed public ledger, these transactions are values of anything (houses, patents, cars, software, contacts, intellectual property, etc), 

 

Blockchain is commonly used for virtual currency, and has become increasingly popular in recent years that incorporates cryptocurrencies like bitcoin and ethereum. 

 

In an automated and secured manner, blockchain maintains the record or ledger of all transactions where each transaction is stored as a “block” and added to the existing chain so termed as blockchain. 

 

This is to note here that each transaction record holds a number of encryptions and redundancies ensuring no change, no falsification or alteration, and thereby a blockchain remains unbroken and error free.

 

Each record is shared with everyone employing blockchain technology, i.e, an individual has a record that can be cross checked with others to ensure no anomalies are present there. Adding a new transaction as a record is time-stamped and verified by each individual who is using the blockchain while establishing no records are falsified or modified.

 

(Also read: Blockchain mining)

 

Additionally, blockchain technology provides decentralized facilitation that dejects centralized control and serves huge privacy and transparency requirements. Therefore, introducing blockchain technology in gamling industry could deliver substantial and verified records across a distributed ledger that are unable to manipulate, such feature brings required transparency across fully digital industry. 

 

Consequently, blockchain technology has brought major tangible benefits and witnessed a huge transformation. In the next section, we will learn the key reasons why a huge crowd of gambling enthusiasts use crypto for online gaming. 

 

(Related blog: What is the future of cryptocurrency?)


 

Blockchain and Gambling: the partnership

 

Blockchain protocols embrace ingenious features that can revolutionize the gamling industry online. Permitting permanent records, blockchain are absolutely secured and transparent as well as provide a layer of anonymity, exclude mediator requirements whereas involve validation and authentication processing and hence enable fair and trusted transactions. 

 

For instance, cryptocurrency uses blockchain technology, it is being accepted as a legitimate source of funds. Casinos are now adopting cryptocurrency as payment, even some casinos are built exclusively on cryptocurrency. 

 

In addition, gambles that are using blockchain have initiated verification so that gambles can ensure games are fair. Employing blockchain technology provides no scope for gambling operators to cheat, or interfere in outcomes or payments. 

 

(Suggested blog: Most stable cryptocurrencies)

 

Let’s discuss these features in detail.

 

Benefits of blockchain in gambling

 

Promising features of blockchain make cryptocurrency an eventual payment processing method, following are the reasons that explains the popularity of adopting crypto in the sphere of gambling;  

 

  1. Security and Validity:

 

Employing blockchain technology provides cryptocurrencies a certain level of security by its inbuilt features. Each transaction taking place using specific currency gets added in a distributed ledger and defines the entry of the coin. 

 

Since the ledger is decentralized, signifying each system involved in the coin's blockchain needs to be validated and acknowledged over what transactions have occurred and hence reduces falsified transactions.

 

Applying blockchain technology across the casino industry gives security features perfectly to gambling industry to protect casinos and gamblers. With blockchain, there is no requirement to do registration on the gambling website for gamblers, they don't validate their identity, no credit card information required or anything else that could put their personal information at risk. They can gamble online without worrying about protecting their account information and finances.

 

In simple process, they can just deposit cryptocurrency, can be validated immediately and start playing, and the online casino won’t have any information about the player except wallet address. In this way, this technology protects the illegal trading of digital assets and curtails the risks when it comes to hacking and payment duplication. (In reference to)

 

  1. Privacy and Anonymity:

 

Major concern for many gambling users is data privacy as several gambling websites demand users to put their personal information. Due to this reason, gambling users feel reluctant about how and where their data is stored. 

 

In the fast internet connected era, the privacy of cryptocurrencies offers an opportunity for gambling websites to cut down the necessity of detailed information as instant transactions of cryptocurrency are validated promptly via public blockchain. This protection of personal information of gambling users further trim the risk of data stolen.

 

(Recommended blog: Centralized and decentralized cryptocurrencies exchanges)

 

 

  1. Instantaneous and Cost-effective:

 

Blockchain technology and cryptocurrency in gambling industry are subjected to provide efficiency by instantaneous transfers. Cryptocurrencies are decentralized, there is no central-authorized body who inspect the validity of a transaction. 

 

As crypto speeds the transaction, it also lowers the cost of transferring crypto. This makes the cryptocurrencies more cost-effective than other sources of payment like credit cards or bank transfers. This is the biggest benefit for both parties-online gamblers and the online casinos.

 

When gamblers deposit crypto online at gambling platforms, there is no requirement for a third-party approval for crypto-transactions. Simply, players have full authorization over their digital money- they make deposit and withdrawal, blockchain instantly verifies transactions in real-time and online casinos will get to know in a fraction of seconds whether transactions were successful or not.

 

 

  1. Transparency:

 

Blockchain facilitated platforms propose an incredible transparency to the online gambling industry. 

 

For instance, users don’t trust traditional casinos and betting services, they believe that the system has been instructed to eliminate the winning possibility and steal their money. 

 

In those conditions, as a public ledger, blockchain networks maintain records of all gaming transactions- payouts, wins, and losses in a both transparent and immutable manner. This process eliminates the risk of fraud and provides legitimacy by displaying the record and transitional history of every user which is inalterable.

 

Blockchain casino and blockchain sports betting platforms are being designed using crypto-empowered open-source programming algorithms that could ensure an elimination of fraud or risks. 

 

(Top reading: Big data applications in casino industry)

 

 

  1. Efficiency and Access:

 

In essence, the gambling platforms that are accepting cryptocurrency can render a streamlined registration process to users due to the efficiency to operate without demanding personal information. 

 

Consequently, these crypto-empowered platforms could be positioned in a better arena in comparison to non-crypto accepting websites and can attract more potential users who can initiate playing via providing email address and username only as indicated by source.

 

 

Conclusion

 

Believing the fact that crypto will play a big game, the advent of blockchain technology has invited multiple industries to explore and leverage the benefits of this blooming technology. 

 

With several potential uses, blockchain technology has successfully transformed ganmbling industry, for examples, crypto casino and bitcoin dice that are becoming popular at mounting level.

 

“With gambling, higher the risk, higher the rewards”, and an additive factor of gambling with cryptocurrencies makes the virtue of games (fully digital industry) attractive again. 

 

(Also read: Big data analytics in casino industry)

 

For gaming, blockchain promises fairness, transparency, security, reliability, confidentiality and many more. Moreover, playing games in any casino and using crypto coins has increased the interest of thousands of people, and added a fan club into the arena who rejects classic casino games for free or fiat money.

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