Blockchain Casino: The Future or a Fad?Published April 10, 2022 by Brett C
Questions are swirling about the viability of blockchain-based casinos and our cultural zeitgeist. Are blockchain casinos the future of online gambling, or are they simply a fad?
The burgeoning crypto market has undergone tremendous growth and development in recent years. This growth accelerated in 2017 and again in 2020. Blockchain-based technological advances have been rampant, with many more use cases for this breakthrough technology. iGaming operations now top the list of future-focused applications.
Cryptocurrency turnover is substantially smaller than fiduciary currency (fiat currency). However, scrutiny of Google trends indicates a steady and growing interest in search terms like 'Bitcoin casino'. The widespread popularisation of iGaming trends is attributed to several factors. For one thing, the online gaming industry operates on the cutting edge of technological advancement.
The question then becomes: What effect do digital currencies and blockchain-based technology have on the growth and development of the iGaming industry? Are these changes for the better or, the worse? What impact will blockchain-based developments have on the future of the iGaming industry? These are all issues near and dear to those in the industry.
Slotegrator representatives have addressed many of these issues. As a leading software developer for online gambling businesses for over a decade, this company is well-positioned to answer these questions.
Blockchain casino functionality – here's what you need to know
Blockchain-based technology comes with encrypted protocols. All transactions that are added to the ledger are fully immutable blocks of data. They cannot be changed or undone. They can also be verified by the decentralised blockchain network.
All transactions take place between crypto wallets, thereby preventing third-party involvement. This dramatically reduces the risk of fraud and means that no commissions need to be paid for financial transfers.
The central bank of each country backs fiduciary currency. On the other hand, crypto is supported by a decentralised ledger that records all transactions taking place. There are over one million copies of the distributed ledger. The implications for such a technology are important insofar as anyone who has access to the blockchain network can verify the transaction.
Additionally, it's impossible to fake the history of Bitcoin. Anyone who attempts to falsify even a single block will impact every block on the network. As a result, many online casino players are naturally drawn to the security and transparency of these decentralised public records.
Cryptocurrency casinos use blockchain technology at a rudimentary level. This allows for ongoing development and automated payments using smart contracts. In other words, many crypto-friendly casinos use the payments option vis-a-vis smart contracts and the blockchain for processing transactions, but not for developmental purposes. If online casinos were built solely on a blockchain model, the operators would be heavily restricted to this technology for creating games. Nowadays, we tend to see a hybridisation of crypto-based payment systems and fiat payment options. As a result, BTC casinos can cater to a diverse audience of players, not simply tech enthusiasts.
Introducing the Slotegrator Bitcoin Casino
Slotegrator's Bitcoin Casino is a cutting-edge gaming platform with fully integrated cryptocurrencies. This system ensures rapid transactions processing capabilities and safe and secure payments.
Players are naturally drawn to cryptocurrency casinos because crypto is more secure, transparent, and in touch with today's tech-savvy players. Players understand the risks inherent in online gaming and online money transfers. They want the transparency and security that crypto-based transactions provide.
Equally important is the fully decentralised nature of crypto-based transactions, the rapid processing capabilities, a.k.a., speed, and anonymity of cryptocurrency. So it's an all-inclusive package that resonates with players on every level.
Many other benefits include provably fair results in casino games, smart contracts, and automated payments. For many years, online casino players wrestled with the credibility issue of online casinos. With provably fair games at cryptocurrency casinos, it is possible to verify game results automatically. This builds trust.
Withdrawals of winnings from online casinos are another major bugbear that players face. That's not so with cryptocurrency casinos. Since there are no third parties involved in processing transactions – traditionally in the form of payment services and banks – players can request a withdrawal and enjoy wallet to wallet transfers within minutes. For many of these operators, registration takes mere minutes, and it's possible to deposit and withdraw in real-time.
Check These Top Online Casinos Accepting Bitcoin
The Flipside of Cryptocurrency Casinos
Benefits notwithstanding, there are still concerns about crypto-based casinos. Many players do not understand the inner mechanics of cryptocurrency exchanges, wallets, and transfers. Plus, there is no standard vis-a-vis legislation in this regard. Extreme volatility is another factor that irks players – the value of one BTC, ETH, LTC, and scores of others can rise and fall dramatically from day to day. This is a natural deterrent to the widespread adoption of digital currency.
Current Gambling Regulations Tend to Fixate on the Following Key Areas:
- Deterring Fraud
- Responsible Gaming Advocacy
- Transparency of the Online Casino Operator
- Anti-Money-Laundering Measures known as AML
- Combating the Financing of Terrorism, known as CFT
A significant challenge for regulatory authorities is the anonymity offered by cryptocurrencies. It is difficult to monitor monetary transfers conducted through crypto-wallets. Since the account holder's name is absent, the only trace is the wallet's address in the blockchain.
Governments, therefore, view crypto-based gambling as a way for criminals to launder money and not pay taxes. This could result in an avalanche of legislation on this nascent industry. Fortunately, government overreach seems far away.
The Bottom Line: Boon or Bane?
All things said and done; it is clear that there are many more advantages to further developing blockchain-based online casinos. Moving forward, it's clear that cryptocurrencies and the blockchain technology that underpins them are the way of the future.
New online casinos will invariably develop, and gambling platforms will undoubtedly adapt to meet the needs of players everywhere in the world. This growth projection is expected to continue across all verticals and horizontals, including payment-related issues, customer support and service, game development, software, blockchain-based mobile services, et cetera.
Current restrictions on online gaming across many different parts of the world will accelerate a move towards blockchain-based casinos. As long as there are restrictions, crypto casinos will present favourably to players. Bitcoin casinos are the way of the future, irrespective of new and improved digital currencies being rolled out on a near-daily basis.
Blockchain casino development is alive and well and has a bright future ahead.