Published on April 27th, 2022 | by Bibhuranjan0
Blockchain and Cryptocurrency Trends in the Online Gambling Industry
Having been introduced in the mid-90s, the online gambling industry is still new. Despite this, the industry is massively growing, attracting numerous players.
Gambling with cryptocurrency is a game-changing trend that is not going anywhere. Bitcoin and crypto casinos are rising to another level thanks to blockchain technology. Players can acquire different coins or tokens like a DESU token and enjoy any game anywhere.
With the rapid increase in its popularity, we can only assume that crypto will have a massive impact on online gambling in the future. Before getting into more details, it is essential to understand blockchain.
What is Blockchain?
Blockchain is a decentralized digital record of all online transactions with digital assets. In other words, it is a database that stores encrypted data blocks linked together to create one chronological ledger of transactions.
Transactions are stored in blocks, and each new transaction is verified and time-stamped by all its users. Each sequence is different; this explains why it is associated with fingerprints. This lets users who don’t trust each other, like in the gambling industry, share important data securely.
How Do Blockchain Casinos Work?
Now that you understand what blockchain is, let us look into how they work with casinos. Blockchain technology has a high encryption level. Each transaction is added to the ledger, an immutable data block, and verified by the network.
Transactions occur directly between crypto wallets without the need for a third party. This minimizes fraud possibilities and removes the need to pay a fee for the transaction.
Unlike national currencies backed by a state, cryptocurrencies rely on a decentralized ledger that stores transaction records. Cryptocurrency gambling uses digital currencies like Bitcoin, Litecoin, and Ethereum.
Online casinos can be web-based or download-based. Web-based casinos let you play a game on the browser, while download-based require that you download and install software on your device. Cryptocurrency gambling is essentially web-based and does not require any downloads or installations.
Blockchain Gambling and Its Popularity
Cryptocurrency online casinos are becoming popular among users. At the moment, many online casinos accept cryptocurrency as a means of payment. This is due to several reasons.
Blockchains keep permanent records and offer secure and transparent transactions. It also provides;
- A degree of anonymity.
- Removing intermediaries like verification and authentication.
- Fair and trustworthy transactions.
Cryptocurrencies gambling platforms regulations focus on:
- Operator transparency
- Anti-money laundering
- Combating the financing of terrorism
- Fraud deterrence
- Responsible gambling
Some casinos are entirely built on cryptocurrencies. Casinos with blockchains have started the verification process so that casinos provide fair play. Blockchain technology does not leave room for operators to interfere with or alter results and payouts.
Benefits of Cryptocurrency to the Gambling Industry
The gambling and gaming industry has embraced blockchains and cryptocurrencies. Cryptocurrencies can advance online gambling security, anonymity, and cost-effectiveness.
Validity and Security
Users who use blockchain technology get additional safety since the database records each transaction. The information is stored in a decentralized ledger, which can prevent the unauthorized transfer of digital assets. It also reduces the chances of hacking and double-spending.
Most online gamblers are primarily concerned with privacy. Most gambling sites require that users provide their personal information when signing up. This makes most users hesitant about the security of this information.
With cryptocurrencies, this is likely to stop. There will be no need to provide personal information since cryptocurrencies are verified through blockchains. This also reduces the risk of personal data theft.
Instant and Cost-Effective Transactions
Blockchain and cryptocurrency technology are efficient for their instant transactions. If you deposit your cryptocurrency on a gambling platform, you do not have to wait for a bank or a third party to verify the transaction. Instead, blockchains verify transactions instantly, and platforms verify their validity.
This makes them a cheaper transaction than bank transfers or card payments. Most cryptocurrencies do not have hidden fees. This benefits the platforms and users as they avoid the cost that comes with the traditional payment means.
Access to a Wide Range of Games
Most crypto gambling platforms offer a wide range of casino games. They include live dealer games, slots, and table games. This lets you try out and sample different games before finding the one you like the most.
Welcome Bonus and Promotions
Cryptocurrency-based online platforms have generous promotions and welcome bonuses to attract new players. These offers boost your winnings and increase your bankroll and offer a good head start.
Gambling sites with cryptocurrencies offer more straightforward registration steps. This is because users do not need to provide unnecessary personal information. This will attract users who want to avoid sharing their data and can easily enjoy gambling with an email address and a user name.
Finding online casinos that accept cryptocurrencies, several online casinos accept cryptocurrencies as means of payment. These cryptocurrencies include Solana, Ethereum, and Bitcoin. Here are certain elements to look out for when finding online gambling sites that accept cryptocurrency;
- Check the payment methods available on the casino to ensure it accepts cryptocurrency.
- Check the online casino’s licensing and regulating information.
- Examine the gaming library to check your preferred casino games.
- Ensure the online casino is reliable.
- Check its promotions and bonuses.
When you find an excellent online casino that accepts cryptocurrency, make a deposit and bet on the game you like.
Disadvantages of Crypto-Based Casinos
The concept of cryptocurrency is still new, and there are yet to be valid downsides. However, users are looking at a few challenges that may come along the way. One of the challenges is government legislation.
Due to its increased anonymity, governments could see cryptocurrency gambling as a forum for illicit funding and introduce various laws. However, at the moment, this is not likely to happen too soon.
Another disadvantage is the volatility of the currency. Spikes and dives in the cryptocurrency’s prices have kept investors on their toes during the last few years. This adds unpredictability to the future of cryptocurrencies.
Types of Cryptocurrencies Accepted by Online Casinos
Bitcoin is a payment means powered by users, and there are no intermediaries of central authorities in between. It was first introduced in 1998 by Wei Dai. Using Bitcoin makes transactions more accessible and safer. It accepts both online and mobile payment means.
It is accessible, transparent, and independent. It also has a high return potential, fluctuating daily or every month.
Ethereum was created in 2014 by Vitalik Buterin. It is accepted as a means of payment and used by the Ethereum network. Other virtual currencies can purchase it like Bitcoin. It is a liquid financial asset used in trading platforms, online exchanges, and broking.
You can transform it into money or an asset like gold. Its inflation strategy makes it hard to tamper with. It has a limitless blockchain system, so users won’t have to worry about the currency deflating.
This cryptocurrency is based on supply and demand. It was created in 2011 by Charlie Lee, a former Google employee. It holds one of the top ten spaces in market capitalization as it has a market cap of $11.6 billion. Just like Bitcoin, it is open-source and decentralized in nature.
The Future of Online Casinos and Cryptocurrency
The future of online gambling platforms and cryptocurrency is bright. Cryptocurrencies have eased the possibility of gambling anonymously, increasing online casinos’ popularity. Casino platforms have become more trustworthy, attracting more clients.
Payment methods are vital in attracting and keeping players on a gambling platform. Due to cryptocurrency meeting users’ needs, we expect new blockchains and cryptocurrencies to keep rising.
Despite being a new concept, crypto gaming has taken the internet by storm. It combines all benefits of internet casinos with additional features. The crypto-playing world may be hard to understand at first, but you will likely land great opportunities if you take your time to learn.
More and more players are looking for convenient, efficient, and secure online betting platforms that cryptocurrencies offer. This makes us believe that cryptocurrency is here to stay and will keep growing steadily. If you are looking to gamble with a safe, secure, and trustworthy platform, consider trying out the top crypto-based online casinos.