The Role of Blockchain and Cryptocurrency in Online Gaming
October 23, 2018
In order to understand the role of the Blockchain technology on the online gaming world and the impact it has on it, let us first turn to the fundamentals of the technology itself as well as of cryptocurrencies. The key factor lies in data security. Blockchain technology, namely, allows data to be transferred and distributed but never copied. It was originally invented to back the Bitcoin cryptocurrency up, and since then it started spreading over many diverse activities on the Internet. Over time, new cryptocurrencies have emerged, mostly based on Blockchain technology. Yet, still, Bitcoin remains the most popular and outspread cryptocurrency on the web.
Blockchain can be seen as a massive database, similar to ledgers used by accountants. It tracks and notes each and every transaction that goes through its peer-to-peer network. As such, every person can conduct a transaction without requiring central authorisation. The transactions become much faster as the third party is removed from it. Transactions also become a lot safer because the data is so well protected that it can’t be copied. It stays only in the Blockchain, the central register of all transactions.
This working model provides technology which has countless uses in various fields, especially from a business point of view.
Blockchain & Online Gambling
The online gambling industry, in which millions of transactions are processed daily, was one of the first areas in which Blockchain started expressing its potential. The first and the most logical role of cryptocurrencies in the online gambling world is reflected in deposits and withdrawals. They become much simpler, and a customer doesn’t have to depend on the servers of payment providers and, of course, pending times will be reduced to a minimum.
Since 2016, cryptocurrencies used for Internet gambling transactions have reached $30 billion! With growth estimated at 10% p.a. The most frequently used cryptocurrencies were Bitcoin and Ethereum.
The second role and advantage of the Blockchain technology are reflected in the security of personal, banking and all other transaction details. The process is completely anonymous and the only person controlling your funds is you. The transaction is not connected to any personal data or bank account information.
One issue with using this technology in the online gambling world, for now, is that it is still positioned in the grey zone of the laws and jurisdictions. But the fact that more and more casinos are accepting cryptocurrencies as a payment method remains, as well as the fact that even new casinos are opening based only on crypto-transactions! Some of them offer generous welcome promotions such as the 32 red casino login bonus.
Safeness & Reliability
As mentioned above, the Blockchain technology literally brought a revolution in terms of data security. Now, let’s see the direct impact on the security of the gambling process at online casinos. The fact that any form of the third party involvement is excluded provides total customer independence, which is applied to each and every type of casino game.
This is more important than any digital security protocols because you and only you are in control of your money. The only communication that exists happens between the player and the gaming platform directly, without any third parties. The main principle to date was that the customer deposits a certain amount of money into the casino’s balance and therefore from that moment they don’t have control over it. With Blockchain that wouldn’t be the case.
The first game that has accepted the Blockchain technology is online video poker. Some online casinos are even bringing in their own cryptocurrencies! The best example is the innotive website named Coin Poker. There are several reasons why Blockchain technology improves online poker:
- It increases the game-play speed;
- It upgrades the utilization of the gameplay;
- It provides direct user-to-user interaction. Cryptographic security ensures that the whole procedure is directed only by the game itself.
Blockchain technology has also found its place in online sports betting. The use of cryptocurrencies in sports betting improves the dynamics of the overall process, providing instant stakes and payouts. Internet casino software developers have already started producing sports betting platforms based on Blockchain technology. One of the many examples is the Blitz Predict platform that is already considered to be the potential future of online sports betting. Although it’s not exactly a sportsbook, it’s a perfect aggregator of it.
Although it still remains to be seen whether the technology is good for the world or not, one thing is certain, in terms of e-gaming it provides an improved level of security, as well as improving the dynamics of online gambling overall. It remains to be seen whether it will completely revolutionize the online gambling world or whether it will take its place among other conventional payment methods.