Blockchain is a fairly popular word today. You don't even need to be tech-savvy to have heard about it. However, it's understandable if you don't know the meaning of blockchain or its boundless potential. In simple words, blockchain is a public digital ledger. However, it can be much more than a ledger, so its applications can be found in many sectors, including online casinos, medicine, government, banking, and so much more.
In the online casino space, blockchain can be utilized in the secure sharing of data and building trust while proving an immutable audit trail for regulatory compliance, identity management, and contract management, amongst others. So, suppose a casino operator has a policy that a player can claim free online slots with bonus rounds once. In that case, blockchain technology can prevent players from claiming it multiple times, ensuring fairness on the platform. There are many more benefits of blockchain in the online casino space, and in this article, we will discuss each of them.
What Is Blockchain Technology?
Before proceeding, it's expedient to talk about blockchain technology and how it works. As we said earlier, blockchain technology is a public digital ledger shared amongst a computer network's nodes. It stores data in blocks linked together via cryptography. Blockchain is best known for the role it plays in cryptocurrency systems in maintaining secure and decentralized transaction records.
However, the use of blockchain is not limited to cryptocurrency; it can be used to make data immutable for industries. Blockchain is so secure because when a block is created, there is no way to change it. The only trust needed is when a program or user enters the data into the block. This aspect of blockchain reduces the need for trusted third parties, often auditors who cost money and are prone to make mistakes.
Top Blockchain Transformative Innovations and Potential in Online Gambling
Since the introduction of Bitcoin in 2009, the use of blockchain has increased exponentially, thus leading to the creation of other cryptocurrencies, decentralized financial applications, non-fungible tokens, and smart contracts. As such, blockchain-based gambling platforms are carving out a niche for themselves, capitalizing on the advantages offered by the decentralized technology. Below are some of blockchain's transformative innovations and potential in online gambling.
Transparency and Fair Play
A prevalent challenge looming in the online casino gambling space is the issue of trust. A good percentage of casino players are concerned about using online casino platforms. Some players' concerns are with the fairness of games, while others are skeptical about the bonuses or being able to withdraw winnings from the platform.
However, blockchain technology is redefining trust in this space. Renowned for its immutability and transparency, blockchain addresses the main concern of many gamblers. The unparalleled transparency of blockchain-based gambling platforms heightens the trust of gamblers in the space.
Blockchain is not merely a theoretical solution but a quantifiable solution reshaping players' perception of online gambling. Often, traditional online casinos leave their players in the dark and are bent on the idea of blind trust, which leaves many disappointed with what they got at the end of the day. However, blockchain empowers players by providing a transparent and decentralized ledger that records every wager, transaction, and game outcome.
Smart Contract
A smart contract is another way blockchain is changing the online gambling space. It is a digital contract stored on a blockchain and is automatically executed. But for a smart contract to be executed, some predetermined terms and conditions must be met.
The application of smart contracts became expedient in online gambling platforms to ensure that players are certain of the outcome of an event without any intermediary involvement or loss of time. Once a smart contract is completed, it is traceable and irreversible.
Understanding Benefits and Operations
There are many ways the transformative power of smart contracts becomes apparent in online gambling, and the table below explains it further:
|
Benefits |
How It Works |
|
Revolutionizing payouts |
Smart contracts can be used to automate payouts when players meet predetermined conditions. As such, payouts can be instantaneous, which can have a tangible impact on players' experience. |
|
Automating security |
Fraud-related disputes are bound to happen when money is involved: it's human nature. But smart contracts aid in minimizing the risk of foul play as bets and outcomes are autonomously executed. |
|
Time-saving |
Smart contracts help save time by eliminating the need for intermediary processes, making them longer and prone to human error. However, utilizing smart contracts facilitates a seamless experience. |
Protecting Players and Platforms
The centralized nature of data storage in traditional online casinos makes it vulnerable to data breaches. But the decentralized nature of blockchain flips this narrative. In a blockchain-based casino, players' data are not confined to a singular server but distributed over a network of computers, which creates an ironclad that's practically impenetrable. The use of blockchain technology ensures that your visit to the site is completely secure.
Players' data is sensitive, and blockchain changes how this information is viewed. It creates an encrypted record end-to-end, preventing fraud or unauthorized access. The issue of privacy, considering blockchain is a public digital ledger, can be resolved by anonymizing personal data and using permission to prevent access. Some of the security controls specific to online casino solutions include but are not limited to:
- Key management;
- Secure communication;
- Identity and access management;
- Data privacy;
- Transaction endorsement;
- Smart contract security.
Global Accessibility
The primary barrier players face when it comes to global participation in online casinos is the geolocation restrictions of the banking sector. But blockchain is a great liberator that renders international transaction fees and currency conversion relics of the past.
In a blockchain-based casino, the use of cryptocurrency as its native currency solves the issue of geolocation restrictions. Players from regions with limited payment solutions utilize cryptocurrency to access any crypto-friendly platform.
Navigating iGaming Beyond Financial Barriers
The borderless and decentralized nature of blockchain makes it possible for players to navigate the iGaming landscape despite its many bureaucratic hurdles imposed by traditional financial institutions.
Using native currency makes it easy for locals to access the geolocation-specific online casino, making it easy for them to claim bonuses and promotions. But such platforms limit their players to only locals when the world could have been its prospect. So, many online casinos today incorporate the use of cryptocurrencies to make their platform accessible, such as:
- Bitcoin;
- Ethereum;
- Litecoin;
- Dogecoin;
- Ripple, and so on.
In addition to cryptocurrency, these platforms accept other payment systems like eWallets, prepaid cards, etc. Essentially, the vaster the payment systems, the more convenient your experience will be in depositing and withdrawing.
Conclusion
Summarily, the limitless potential of blockchain technology is evident in reshaping the online gambling space. Blockchain addresses many challenges the iGaming space faces by improving the overall user experience. The blockchain-based casino is filled with several opportunities that every player can take advantage of to improve their quality of play.
So, today, it doesn't matter what region you're in; blockchain is more about what the platform can offer you. When you have access to a worldwide online casino, proper research and comparison of what different platforms offer is crucial in choosing which platform to use. You can choose a platform that best suits your taste based on your preferences.
