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The Online Gambling Industry Has Been Changed by Blockchain
Published 10:29 am Tuesday, October 10, 2023
It should shock no one to say that the online gambling industry has radically altered over the last decade or so. As well as many traditional online casinos struggling to reach some sort of legitimacy, blockchain technology has been a significant disrupter in the field. The gambling world witnessed the rise of some of the finest crypto casinos that have emerged as a disruptive force, offering players a more trustworthy and innovative gambling experience than most traditional online casinos.
This article will explore the concept of crypto casinos, how blockchain technology is reshaping the online gambling industry and discuss the benefits and challenges of this exciting development.
Digital assets for digital betting
As cryptocurrencies burst onto the market, it was no shock when people wanted to gamble with them. What might be surprising is the fact that the cryptocurrencies themselves enabled a more transparent and decentralized gambling ecosystem, addressing the concerns plaguing traditional online casinos for years.
How is it more trustworthy?
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Because of how the blockchain functions, crypto casinos, that are built on the blockchain, also gain the same transparency that blockchain technology offers. With the use of smart contracts, bets can be executed and payouts made automatically, which eliminates the need for intermediary third parties and adds a level of security in terms of making the process tamper-proof and verifiable.
Players can prove the games are fair
Because games on crypto casinos are built on algorithms that use cryptographic techniques, players can independently verify that the games are fair and random and eliminate any doubts that players may have about whether or not the casino is legitimate. As players can prove that the games are fair, it isn’t necessary any longer to rely on third-party organisations to verify them, but instead third-party organisations build lists to compare the best crypto casinos in terms of game variety, payout and other features that casino-goers prize.
The blockchain is about as secure as it gets
Without using quantum computing technology, hosting information on the blockchain is about as secure as it can get. Any transaction that takes place on the blockchain is encrypted and immutable, as we’re sure you know, which makes it very difficult to intercept, steal or otherwise manipulate.
It isn’t all smooth sailing on the digital sea
Much like other disruptors, crypto casinos have struggled with regulation and legality. Any explosive change in a market is likely to leave regulatory bodies far behind, which in some cases can result in overcompensatory knee-jerk reactions. It could be argued that this is the case for crypto casinos, but it is fair to say that the phenomenon does need some amount of regulation.
The online gambling industry has already been criticised for making it easy for criminal organisations and those involved in illegal activities to launder money and adding the pseudo-anonymous nature of blockchain to that mix and it’s no surprise that some regulatory bodies have fallen over themselves to try and regulate the crypto-gambling industry.
It seems fairly likely that this disruptive technology isn’t finished with the innovations and players should expect more advancements as the technology matures. Some potential developments include:
- Decentralized gambling apps: Decentralized applications, known as DApps, are built on blockchain networks like Ethereum and offer a new way to interact online. DApps are designed for peer-to-peer interactions that include payment, which would truly eliminate intermediaries.
- Tokenization of assets: It’s true that NFTs haven’t done really well. But blockchain technology still does enable the tokenization of assets, which with the right technology driving it would allow players to directly trade ownership of digital assets like in-game items.
- Enhanced security measures: As blockchain technology continues to mature, so too does the level of security that it offers.
- Integration with traditional casinos: It is sink or swim for the more traditional casinos, both online and brick-and-mortar providers have to at the very least provide some cryptocurrency payment options and in many cases adopting blockchain technology for their games is the smartest option.
Current trends in crypto casinos
The trends that are currently emerging in crypto casinos are very similar to those in more traditional online casinos. Live-dealer games are becoming popular and some technological trends such as the pursuit of augmented reality (AR) and virtual reality (VR) technologies are becoming popular in an attempt to provide a more immersive casino experience.
While these trends might not be as disruptive as the underlying technology of the blockchain is in the industry, they have the opportunity to be taken to new places with the use of blockchain technology and will likely feature further innovation than the same trends offered by traditional online casinos.
It seems clear that crypto casinos are the future and present of online gambling, even if it is just insomuch as the seeming necessity of using the blockchain to power the games that are run by the casino. The blockchain offers a more transparent and secure way for online casino goers to play and most of the issues that plagued traditional online casinos for players have evaporated in the dawn of this new technology. The issues that remain are mostly issues for regulators and lawmakers rather than players, meaning the future of crypto casinos is a future that will surely face increasing regulation.