5 Ways That Blockchain Technology is Advancing Online Casinos
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Blockchain technology might be a foreign concept to most people. However, it’s a technology that’s transforming industries across the globe. With that said, the most popular example of blockchain technology is cryptocurrencies.
According to Forbes Advisor, there are roughly 23,000 cryptocurrencies in circulation in 2023. Bitcoin and many other cryptos are invested and traded on the blockchain network through online exchanges.
One industry that has greatly benefited from blockchain technology has been online gaming. More specifically, online casinos have greatly evolved through the usage of this advanced tech. Let’s take a closer look at how blockchain technology continues to revolutionize online gambling sites.
Safe, Fast Deposits and Withdrawals
When Bitcoin was at its peak of media hysteria, there were a few online casinos that jumped into action and implemented cryptocurrency deposits and withdrawals. At the time, it was uncommon to use crypto for gambling at traditional online casinos.
Five years later, casinos are encouraging the use of cryptocurrency to fund gambling accounts online. It isn’t restricted to just one or two online casinos, either. Some of the most well-known and reputable online casinos offer crypto banking options.
Bovada, BetUS, and MyBookie are a few blockchain casinos that are currently using the technology to serve gamblers. So, how does gambling with cryptocurrency work? Simply put, online casinos have a cryptocurrency address where you will send crypto from your wallet to their wallet address.
As soon as the casino verifies your crypto deposit, the money will be deposited into your account. Likewise, the process will be the same for withdrawals, but you will need to provide your cryptocurrency address for the casino’s cashier to transfer winnings to your online wallet.
Blockchain casinos initially only accepted Bitcoin, but it has evolved to include multiple cryptos. Ethereum, Litecoin, and Dogecoin are a few standard crypto banking methods to use for deposits and withdrawals.
Security Against Cyberattacks and Fraud
With information stored on centralized servers, the risk of unauthorized individuals accessing data can be high. It has become increasingly difficult for companies to keep pace and stay educated on the new techniques that criminals are using.
The safest online casinos utilize the latest cybersecurity technology to thwart online attacks. They invest millions of dollars per year to protect their websites. In the near future, the most reliable online betting sites will store personal information on the blockchain.
Rather than centralized records in a database, blockchain allows information to be stored securely on a decentralized network. Blockchain technology is based on a distributed ledger system. Data is stored across multiple nodes on the blockchain network.
The consequence of this is an encrypted network that is incredibly difficult for hackers to exploit. Instead of wasting their time on online casinos that use blockchain security, they will focus their time elsewhere.
Blockchain Casino Games Have Stronger Transparency
Have you ever gotten into a dispute with an online casino regarding your game results? Blockchain casino games, which are beginning to be rolled out at select online gambling sites, provide the ultimate answer to disagreements.
There is nothing that can be altered or tampered with on the blockchain. As a result, blockchain casino games cannot be rigged or influenced by programming or casino employees. This equates to the best in online casino transparency for online gamblers.
Gamblers that only like playing table games at land-based casinos in fear of not getting a fair bet online, will not be able to bring up this argument while playing blockchain casino games.
Regulated online casinos continually monitor their games for player fairness. Additionally, they are audited by a third party, but blockchain gaming would add an additional layer of trust for players.
Blockchain casino games make everything easier for players and casino personnel alike. They remove a large deterrent for gamblers that don’t trust online casinos in their traditional capacity.
Helping Enforce Responsible Gambling and Regulations
Governments and regulators continue to put pressure on online casino companies to enforce strict responsible gambling measures. If you have ever been asked to verify your identity, which all trustworthy online casinos are required to do, it is a result of regulations.
In some instances, casinos will ask players to verify their source of income, as well. Generally, this will only happen with incredibly large deposits, but it can occur if online casinos are suspicious. The reason is twofold: money laundering and responsible gambling.
In March, the UK’s William Hill was fined a record $24 million fine for failure to stop money laundering and protect players. The violation was so severe that Britain’s Gambling Commission considered suspending the gambling firm’s license.
As online casinos remain vulnerable to problem gamblers and money launderers, blockchain technology is a viable option. Not only would it help keep online casino records transparent and accurate for regulators, but also restrict gambling addiction.
According to a study in 2021, nChain discovered that over 50% of firms surveyed had an inclination that their audit trails were compromised.
“The truth is, we simply can’t trust the data we rely upon. It’s not conjecture. We know this, partly because at nChain, we commissioned Frost & Sullivan to carry out research on our behalf, and that research was to determine the level with which those in charge of data integrity trust the data they interact with,” said nChain’s Director of Marketing and Director of Product & Solution Strategy, Dominic Duffy.
Advancing to blockchain technology will ensure that record-keeping is time-stamped with absolute proof of transactions. Audits cannot be compromised, thus proving that they are following government regulations.
Additionally, blockchain technology can assist operators in limiting problem gamblers with better accuracy. Online casino operators have measures in place, but transactions and bets made on the blockchain allow for immediate restrictions without human interaction.
Improved Player Loyalty Programs and Bonuses
A big advantage to gambling at online casinos is the lucrative casino bonuses that are awarded to players. However, customers often complain that comps and bonuses are not fair based on their level of play.
This can happen at land-based casinos, too. Player ‘A’ might receive more freebies than Player ‘B’, who hasn’t gambled nearly as much. With blockchain gambling, the guesswork can be taken out of applying bonuses to gamblers’ accounts.
Online casinos can allow the blockchain to record gambling activity with irrefutable proof of how much they’ve gambled and for how long. Therefore, costs can be cut for the casino, while players will no longer feel “cheated” on the comps and bonuses that they’ve received.
No longer will gamblers feel like bonuses are awarded on a random basis. This should benefit most players in the casino. At the very least, online casinos will be able to apply bonuses to players’ accounts that deserve it the most.
Online Casino Bitcoin Tutorials
Fortunately, if you are new to Bitcoin and cryptocurrency, the majority of online casinos make it easy to get started. For newcomers to cryptocurrency, there are a few important steps that you will need to know before transferring money to your online casino account.
To deposit using Bitcoin or another cryptocurrency at an online casino, gamblers will have to buy it from a cryptocurrency exchange. This will require an account and fiat currency deposit at an exchange of your choosing.
After purchasing crypto, it must be transferred to the online casino’s wallet. Additionally, we suggest having a crypto wallet for online gambling. The wallet is your private storage for Bitcoin and other cryptocurrencies.
