Cryptocurrency and blockchain technology has been one of the most trending topics in the last few years. Blockchain technology is changing how several industries operate from IT, banking even to the shipping industry, using mechanisms such as peer to peer topology, decentralized ecosystem, smart contracts, etc.
One industry in particular that will be well served by the blockchain and its underlying technologies is the iGaming industry. Gambling houses, whether online or offline, thrive on the perceived transparency and fairness by the customers.
The symbiosis seems like a match made in heaven. So, what makes blockchain technology unique and what does it bring to the table in terms of benefits for the iGaming industry?
Features and Benefits of Blockchain technology in iGaming
Enhanced Safety and Security
Online betting websites protect the financial and personal data of the customers using cutting edge SSL encryption technology. However, a website using an SSL certificate does not guarantee 100% of your data and fund safety, as several reputable sites have been attacked despite it. Blockchain technology provides much better protection using Smart contracts.
Using blockchain digital currency makes stealing of your personal and financial data a wild goose chase for cybercriminals as your data are not needed to complete a transaction on a blockchain-integrated betting platform. More so, data on blockchain technology cannot be manipulated or deleted as finding a single point of attack is almost impossible.
Transparency and Provable Fairness
Most gamblers do not trust betting platforms they are playing, who could blame them. The industry has experienced its fair share of rogue betting websites or casinos. Players need to trust entirely the claim of “provably fair” that many sites use to promote themselves. Unfortunately, it is hard for the players to prove this claim.
Blockchain technology is known for its high integrity, with no central authority controlling the system. It gives no room for manipulation; what you see is what you get. A blockchain integrated website uses a more transparent fair play algorithm instead of auditing by an authorized body or third party. All information is contained and can be accessed from a public ledger.
Privacy and anonymity
Though gambling has become legal in many parts of the world, more countries are legalizing it or lowering its restrictions. The majority of the players want complete anonymity and confidentiality of their gambling activities and transactions. You shouldn’t have to worry about prying eyes, but enjoying the best of casino games and maximizing your chance of winning.
The good news is a typical transaction on a blockchain technology leaves an obscure, untraceable digital footprint. The deals and interactions on blockchain technology are available to the general public, via the public Ledger but masked by random numbers and characters.
This feature is probably why digital coins are sought after by many people. The anonymity of transactions means there is little to zero possibility of online hacking or identity theft.
Speed and no or minimal transaction fee
The conventional method of payments often come transaction fees and sometimes, hidden charges. Those charges may not amount to much now, but matter in the long run, especially if you make or receive payment frequently.
Depending on the cryptocurrency, transferring funds most times is at zero or a very minimal cost with no hidden fees, unlike using credit cards and other regular payment methods. Eliminating and saving conversion fees and additional charges give you more funds to try your luck at betting shops or websites.
Also, transactions are processed and completed within a few minutes, sometimes in a few seconds. With growing acceptance in several countries, there are facilities to exchange your cryptocurrency with fiat seamlessly.
Better odds and return to player
The only guaranteed winners in betting are the houses. Their profit is predetermined and subtracted from every wager that the players make. It does matter whether the player is betting against other players or the house. There is a house edge that guarantees a profit for the sports betting and casino businesses, from all the players’ wager regardless of the game result.
Through the peer-to-peer and decentralized feature of blockchain technology, there is less need for a middleman. That increases the odds and also the amount of the total bet returned to the players. Betting without the middleman is possible via smart contracts, which serves as a contract or agreement among the players only.
There is no perfect system. One of the benefits of blockchain integrated gambling, which is anonymity, is a two-edged sword. Several crypto-based casinos are springing up on the internet every day. Many of them operate under anonymity, holding an easy-to-get and weak standard Curacao eGaming license, which makes them extremely difficult to trace when things go wrong.
All in all, the benefits outweigh the few flaws. The technology is evolving but well-positioned to disrupt the iGaming industry shortly. With considerable success in more prominent industries, the signs of a well-adopted blockchain-integrated iGaming industry are good.
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