Learn From Thousands: How Blockchain Casinos Work
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With the development of technology, online casinos with blockchain-based integrity control began to gain more and more popularity. What are their special features?
They are not just institutions like Tonybet, where you can use cryptocurrency for all transactions.
Rather, it is a unique system where all deposits and withdrawals are stored in smart contracts. About how to distinguish them from the usual online casinos we are accustomed to, read our article.
How Blockchain Casinos Work
Blockchain casinos use smart contracts to record transactions in blockchain and tokens as a counterpart to chips.
The player makes a deposit, the smart contract changes the deposit into tokens and credits them to the player’s wallet. Casinos can create blockchain and tokens or use an off-the-shelf blockchain module.
Gaming industry regulators inspect casinos and issue licenses. A casino without a license cannot open a bank account, buy games and operate legally. Regulators re-inspect casinos based on player complaints and revoke the license if the casino cheats.
Some regulators work with blockchain developers. With blockchain, verification is simplified because the regulator sees all blockchain casino activity in real-time.
How Blockchain Protects Players
Blockchain makes the gaming process transparent. Player and blockchain casino actions are recorded in a public registry. This data can be verified and the blockchain casino cannot change it.
Shows the Casino Balance
The blockchain casino pays out winnings to the player’s wallet through a smart contract. The smart contract has an address in the blockchain. The player can view the blockchain casino balance and payout history using the blockchain browser.
The smart contract code is in the public domain. The user can check this code or contact an auditor like Hacken.
Proves the Fairness of the Game
Casinos buy games from game providers. The regulator checks the fairness of the games: it makes millions of bets and counts the payoff percentage of each game, but players cannot check this data themselves.
The payout percentage shows the number of possible winnings. At 97% payout, the casino will distribute 97% of the best among the players and will earn 3%.
Blockchain casinos record the bets and their results in blockchain, so the payout percentage of the game can be verified.
No Cheating Affiliates
Affiliates are casino partners. They attract players through referral links and receive a percentage of deposits made. Online casinos can cheat with the percentage: set high limits for-profit withdrawals and delete data on attracted players.
In blockchain casinos, statistics about attracted players are recorded in a public registry, affiliates can check this information.
Memo: How to Choose a Blockchain Casino
Online casinos may accept cryptocurrency deposits and claim to be blockchain-based. They’re lying.
We tell you how to choose a blockchain casino.
License
The casino gets a license for gambling activities from the regulator.
The price of such a license is $20,000 or more, and it takes several months to obtain it. Without a license, casinos can’t open a bank account, run a website, and get games from game providers.
Casinos list the license at the bottom of the site or on the legal documentation page. Gambling sites without a license can disappear: the regulator will block the domain, close the bank account, report to law enforcement.
Security of Personal Data
The casino will lose its license if it admits minors or residents of countries where gambling is prohibited. For this reason, gambling sites ask for players’ personal data.
Make sure that the blockchain casino website opens via HTTPS and has an SSL certificate.
User Agreement and Terms of Play
When registering, the player must accept the terms and conditions of the user agreement. In the agreement, the casino may disclaim responsibility for paying out winnings. Read this document.
Jurisdiction
Online casinos are banned in at least 14 states, with another 17 jurisdictions with strict restrictions. Blockchain casinos may refuse withdrawals to residents of these countries. Check if online gambling is allowed in your country.
Reviews
Casinos care about their reputation: order positive reviews and reviews on gambling sites. Read reviews on independent resources.
Conclusion
Blockchain ensures the transparency of casinos: players can check the solvency of the service, their chances of winning and conduct/order an audit of the smart contract code. This makes them more attractive than traditional online casinos.
Blockchain makes the game fair, but it does not guarantee the player will win. Don’t play with money you’re not prepared to lose.
Cryptocurrency has affected and changed many areas, including online gambling.
Of course, at first, there was a lot of hype and prospects, but at the moment, in general, it did not cause great changes in the industry, but rather of medium severity. For a number of specific areas in gambling, however, cryptocurrency has been a turning point.
Many players in countries with strict currency regulations were finally able to meet their needs without the fear and risk of losing their money, and online casinos were able to provide them with these services.
