Over the years, online casinos have evolved for the better, and the latest development is the incorporation of blockchain technology in operations and transactions of online casinos. Typically, the blockchain networks present a decentralized system that is easy to manage by the casinos. The blockchain system ensures security, transparency, and quick transaction time.
An Introduction to Online Casino & Blockchain
Online casinos are far too many, but the ones that are apparently safe are the ones that are decentralized. Blockchain technology plays a very important role here as it provides the utmost transparency rendering the casino secure for players.
Dissecting the term into ‘block’ and ‘chain’ simplifies our understanding of blockchain technology as follows. Block typically refers to a digital block or information, and the chain refers to the database of information.
To elaborate further, every block carries the information of when the digital block was purchased along with the time of purchase and the value of the block. Most often, it depicts the value of a particular type of cryptocurrency like Bitcoin.
With the internet saturated with online casinos, players are opting to go for the ones incorporating the blockchain system as they make them decentralized, providing transparency to customers.
5 Reasons Why Online Casino & Gambling Needs Blockchain?
In gambling, your money is often at stake. While most players gamble responsible, there is no protection from rigged casinos. Also, though casinos claim to be fair, there is no solid assurance for players to consider. Blockchain technology comes into the picture here, where it ensures transparency to players.
As stated earlier, a blockchain is basically a database of information; one can find the entire history of not only the transactions but also the casino’s operations right from who won to how much. Moreover, all blockchain-based casinos employ open-source algorithms leaving no scope for fraudulence.
- Improved Security
The enhanced security is due to the secure transactions powered by blockchain systems where each and every transaction is noted in the database. Blockchain, as such, can neither be manipulated or tampered with, giving a detailed description of what transpired.
Thus, blockchains not only note who won and how much but also when the payments were made. Thus, players are ensured of fair transactions and timely payouts.
- The timely or improved process of payouts
Blockchain enables smart contracts that further facilitates an improved process of payouts. Basically, smart contracts are programs that auto-execute when certain conditions are met. For instance, when a player wins a game, the smart contract self-executes and implements the necessary payout protocol. That being said, it enables faster payouts for players.
- Cryptocurrency and anonymity
Most often, blockchain is synonymous with cryptocurrencies and vice versa. However, when casinos provide provisions for transacting with cryptocurrencies, both the casino and players can save on the bank charges along with third-party payment fees. In fact, there are no additional charges for cryptocurrency transactions.
Apart from this, via cryptos, blockchain technology aids in player anonymity. That being said, the player can divulge only the basic information like username or email rather than providing bank account details as in the case of FIAT currency transactions.
- Makes gambling legal and socially acceptable
Along with reducing house edge costs, blockchain technology makes gambling socially acceptable. Typically, house edge refers to the percentage of bets the casino retains for itself as operational costs. Blockchain indirectly reduces the house edge costs meaning this value is added to the prize money for players.
On the whole, blockchain technology presents an amalgamation of transparency, security, value for money, which has popularized casinos among masses, which previously were skeptical about gambling in general. While gambling if socially acceptable, it is because of blockchain and the use of cryptocurrencies like Bitcoin, Ethereum, Dogecoin, to name a few.
How Does Blockchain Work at Real Money Online Casinos?
Generally, when an online casino uses a blockchain system, every action of the player is recorded in the digital block. Meaning after every bet, a new block is added to the network chain. And, once the bet or transaction is recorded on the blockchain network, it is available for anybody to see, including players where the latter can determine whether the bet was fair or not.
Pros of Blockchain in US Casino Gambling
- Smart Contracts for faster payouts
- Blocks stored in chronological order
- Transparency and increased security
- Cryptocurrency transactions
Blockchain technology undoubtedly improves some of the crucial aspects of the gambling and gaming industry. It paves the way for decentralized casino games and smart contracts Bitcoin casinos. In a nutshell, they make the casinos trustworthy and reliable.